Saudi Cable Company (2110) Q2 2025 earnings summary

Executive summary

• Net profit for the six months ended June 30, 2025, was SAR 65 million, a significant increase from SAR 7 million year-over-year.

• Accumulated losses remain high at SAR 412 million, representing 617% of share capital, though improved from 714% at year-end 2024.

• Current liabilities exceed current assets by SAR 881 million, indicating ongoing liquidity challenges.

• The company is pursuing a financial restructuring plan, including a proposed SAR 400 million rights issue.

Financial highlights

• Revenue for the six-month period was SAR 74.3 million, up from SAR 22.7 million year-over-year.

• Gross loss for the period was SAR 18.9 million, compared to SAR 19.6 million in the prior year.

• Operating loss narrowed to SAR 35.1 million from SAR 16.2 million year-over-year.

• Profit before zakat and income tax reached SAR 67.2 million, up from SAR 18.4 million.

• Basic and diluted EPS from continuing operations was 10.07 for the six months, compared to 2.12 year-over-year.

Outlook and guidance

• Management forecasts net profit from 2025 onward, contingent on successful rights issue, revenue growth, and creditor approval of the restructuring plan.

• Material uncertainty remains regarding the company's ability to continue as a going concern due to high accumulated losses and negative working capital.