| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 1,952,061 | 1,637,051 | 19.24 | ||
| Gross Profit (Loss) | 789,465 | 760,361 | 3.83 | ||
| Operational Profit (Loss) | 543,082 | 589,547 | -7.88 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 188,043 | 284,591 | -33.92 | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 184,565 | 272,543 | -32.28 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 1,551,590 | 1,385,687 | 11.97 | ||
| Profit (Loss) per Share | 3.42 | 5.17 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year | Arabian Contracting Services Company achieved revenue growth in 2025, with revenues increasing from SAR 1,637 million to SAR 1,952 million, representing an increase of 19% compared to the previous year. This increase was primarily driven by the Company’s expansion in market share through several exclusive projects, in addition to the continued digital transformation of its advertising inventory, which enhanced the Company’s capacity to attract a broader range of advertising campaigns and advertisers. This was achieved despite several challenges during the year, most notably: • Challenges facing the advertising sector in general; • Advertising exclusivity in the city of Riyadh under the Project for the Development, Operation and Maintenance of Outdoor Advertising Billboards in Riyadh was not fully completed until late September 2025. • The advertising network has not yet been fully completed, in addition to delays in the preparation and installation of Iconic billboards and digital zones associated with several contracts, including the Project for the Development, Operation and Maintenance of Outdoor Advertising Billboards in Riyadh, the Riyadh Airports Company contract, the King Abdulaziz Public Transport Project in Riyadh (train and buses), the Between Roads Advertising contract, as well as the digital billboard network in Dubai, United Arab Emirates. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | Despite the increase in revenue during 2025, Arabian Contracting Services Company recorded a decline in net profit after zakat to SAR 188 million, compared to SAR 285 million in the previous year, representing a decrease of (34%) This decline was primarily attributable to higher operating and financing costs associated with the Company’s current expansion phase in its advertising site network, in addition to the incomplete installation and operation of a number of advertising assets related to several strategic projects. As a result, the Company incurred part of the operating costs before fully realizing the operational benefits from these assets. Net profit was also affected by higher general and administrative expenses resulting from one-off provisions established to address potential obligations, as well as higher expected credit losses associated with financial assets, in addition to increased financing costs related to funding strategic projects. Nevertheless, the Company continues to implement its expansion plans and complete the advertising site network associated with several strategic projects and contracts, which is expected to positively support the Company’s operational and financial performance in the coming periods. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | N/A |
| Reclassification of Comparison Items | With reference to the contract for the Project for the Construction, Operation and Maintenance of Outdoor Advertising Billboards in the City of Riyadh and its appendices (the “Contract”), entered into between Remat Al Riyadh Development Company and the consortium of Arabian Contracting Services Company and Saudi Artificial Intelligence Company on 10/04/1445H, and to the amendments made thereto, including the extension of the contract term, as announced on the Saudi Exchange (Tadawul) on 22/10/2025G corresponding to 30/04/1447H, the Company has reassessed the accounting treatment applied to this contract. This reassessment was undertaken in light of the above-mentioned amendments and the discussions that took place during the current year, which contributed to a more precise understanding of the nature of the contractual arrangements related to the project. As part of the Company’s commitment to ensuring the appropriateness of the applied accounting treatment, the Company appointed two independent international accounting advisory firms to examine the nature of the contractual arrangements associated with the Contract and to assess the most appropriate accounting treatment in accordance with the International Financial Reporting Standards as endorsed in the Kingdom of Saudi Arabia. These technical studies and assessments indicate that the contractual arrangement under the Contract does not fall within the scope of a public service concession arrangement and does not include obligations to provide a public service in accordance with the relevant interpretations of International Financial Reporting Standards. Accordingly, the Company has adopted an updated accounting treatment for the Contract under International Financial Reporting Standard (IFRS) 16 – “Leases”, which more accurately reflects the substance of the related contractual arrangements. As a result, the Company re-presented and reclassified certain comparative figures for the financial year ended 31 December 2024, to reflect the updated accounting treatment and the most appropriate presentation of the relevant financial statement items. As disclosed in the financial statements, the financial impact resulting from the application of the updated accounting treatment was recognized during the current year, including its immaterial impact on retained earnings as at 31 December 2024. This reflects the Company’s commitment to the appropriate application of the International Financial Reporting Standards as endorsed in the Kingdom of Saudi Arabia, after undertaking all necessary professional procedures, including engaging independent accounting advisors from leading international firms, an independent legal advisor, and based on the recommendation of the Audit Committee regarding the financial statements and the approval of the Board of Directors. |
| Additional Information | - |
