Saudi Cable Company (2110) Q2 2024 earnings summary

Executive summary

• Achieved net profit of SAR 7.02 million for the six months ended June 30, 2024, reversing a net loss from the prior year period.

• Revenue increased to SAR 22.69 million for the six-month period, up from SAR 15.59 million year-over-year.

• Board decided to exit Turkish investments due to persistent losses and legal/operational challenges.

• Ongoing financial restructuring, including a proposed capital increase of SAR 400 million, is underway.

Financial highlights

• Revenue for H1 2024 was SAR 22.69 million, up from SAR 15.59 million year-over-year.

• Net profit for H1 2024 reached SAR 7.02 million, compared to a net loss of SAR 57.44 million in H1 2023.

• Gross loss for H1 2024 was SAR 19.56 million, improved from SAR 35.27 million in H1 2023.

• Basic and diluted EPS for H1 2024 was SAR 1.05, compared to a loss per share of SAR 8.61 in H1 2023.

• Cash and cash equivalents stood at SAR 9.01 million as of June 30, 2024.

Outlook and guidance

• Management forecasts net profit from 2025, contingent on cash injection, revenue growth, and successful creditor voting in Q3 2024.

• Proposed capital increase of SAR 400 million via rights issue to support restructuring.

• Financial restructuring plan under court review, with a modified proposal submitted in July 2024.