Saudi Cable Company (2110) Q4 2024 earnings summary

Executive summary

• Achieved net profit of SAR 48.8 million for 2024, up from SAR 17.8 million in 2023, despite significant accumulated losses.

• Revenue increased to SAR 44.1 million from SAR 30.7 million year-over-year, driven by both goods and contract revenue.

• Board decided to exit Turkish investments due to persistent losses and legal developments; assets classified as held for sale.

• Financial Restructuring Procedure (FRP) initiated; proposal submitted to court, with new trustee appointed after legal challenges.

• Board recommended a SAR 400 million rights issue to inject capital and support future operations.

Financial highlights

• Revenue rose 44% year-over-year to SAR 44.1 million; gross loss narrowed to SAR 18.9 million from SAR 68.2 million.

• Net profit from continued operations was SAR 66.3 million, with a net loss of SAR 17.5 million from discontinued operations.

• Accumulated losses reduced to SAR 476.8 million, representing 714% of share capital.

• Cash and cash equivalents increased to SAR 14.0 million from SAR 7.8 million year-over-year.

• Investment in associates grew to SAR 486 million, with share of results at SAR 127.3 million.

Outlook and guidance

• Management forecasts net profit from 2025, contingent on rights issue, revenue growth, and FRP approval.

• Future performance depends on successful capital injection and restructuring, with material uncertainty due to high liabilities.