Saudi Research and Media Group (SASE) Q4 2024 earnings summary

Executive summary

• Revenue declined 12.9% year-over-year to 3.26 billion, with net income dropping 73% to 138.4 million.

• Gross profit margin fell to 26.2% from 30.6% year-over-year, reflecting higher costs and impairments.

• Significant impairments and higher finance costs impacted profitability, especially in the printing and packaging segment.

• The Group remains diversified across publishing, digital content, PR, advertising, and printing, with operations in the Middle East, Europe, and North Africa.

• The Board approved the transfer of statutory and contractual reserves to retained earnings in 2024.

Financial highlights

• Revenue: 3.26 billion, down from 3.75 billion year-over-year.

• Net income: 138.4 million, down from 512.2 million year-over-year.

• Basic and diluted EPS: 2.52, down from 7.00 year-over-year.

• Gross profit: 855.6 million, down from 1.15 billion year-over-year.

• Operating cash flow: 239.3 million, up from negative 704.2 million year-over-year.

Outlook and guidance

• Management prepared cash flow forecasts indicating sufficient funds and continued profitability for at least 12 months.

• Revenue expected to remain supported by long-term customer relationships and diversified segment services.

• No significant subsequent events requiring disclosure after year-end.