| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 263,926 | 425,566 | -37.982 | 415,649 | -36.502 |
| Gross Profit (Loss) | -77,200 | 135,257 | - | 153,349 | - |
| Operational Profit (Loss) | -124,006 | 75,413 | - | 118,735 | - |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -214,464 | -33,086 | 548.201 | 8,881 | - |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -216,004 | -31,990 | 575.223 | 8,836 | - |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 679,575 | 958,399 | -29.092 |
| Gross Profit (Loss) | 76,149 | 421,924 | -81.951 |
| Operational Profit (Loss) | -5,271 | 323,393 | - |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -205,583 | 129,701 | - |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -207,168 | 130,820 | - |
| Total Shareholders Equity (after Deducting Minority Equity) | 1,344,422 | 1,497,845 | -10.242 |
| Profit (Loss) per Share | -3.74 | 2.36 | |
| 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 quarter compared to the same quarter of the last year is | The Group’s revenue decreased by 38% during the current quarter compared to the corresponding quarter of the previous year, mainly due to a decline in advertising demand and the continued geopolitical tensions in the region during the quarter, which resulted in lower client spending, leading to the cancellation of several advertising campaigns and reductions in the budgets allocated to them. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The increase in the Group’s net loss during the current quarter compared to the corresponding quarter of the previous year was mainly attributable to lower Group revenue, in addition to higher associated costs resulting from the handover and operation of several new advertising sites, despite the advertising networks under the relevant contracts not yet being fully completed. This led to higher lease and depreciation expenses, which adversely affected profit margins during the period. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The Group’s revenue decreased by 37% during the current quarter compared to the previous quarter, mainly due to the normal seasonal fluctuations in the Group’s business, in addition to lower demand for advertising campaigns due to the continued geopolitical tensions in the region during the quarter, which affected the advertisement spending levels for several clients and the volume of campaigns carried out during the period. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The shift in the Group’s results from a net profit in the previous quarter to a net loss in the current quarter was mainly attributable to lower Group’s revenue, in addition to higher associated operating costs resulting from the handover and operation of several new advertising sites, despite the advertising networks under the relevant contracts not yet being fully completed. This led to higher lease and depreciation expenses, which adversely affected profit margins during the period. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | The Group’s revenue decreased by 29% during the current period compared to the corresponding period of the previous year, mainly due to a decline in demand for advertising and geopolitical tensions in the region, which resulted in lower spending levels by several clients, including the cancellation of a number of advertising campaigns and/or reductions in their allocated budgets, which affected the volume of campaigns carried out during the period." |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The shift in the Group’s results from a net profit in the corresponding period of the previous year to a net loss in the current period was mainly attributable to lower Group revenue, in addition to higher associated operating costs resulting from the handover and operation of several new advertising sites, despite the advertising networks under the contracts remaining incomplete. This led to higher lease expenses, which adversely affected profit margins during the period." |
| Statement of the type of external auditor's report | Unmodified conclusion |
| 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) | Emphasis of Matter – Restatement of the Condensed Interim Consolidated Financial Information for the Comparative Period |
We draw attention to Note Number (15) to the accompanying condensed interim consolidated financial Information, which indicates that:
-The comparative information presented for the three-month and six-month periods ended June 30, 2025 has been restated as a result of the Group, through one of its subsidiaries, reassessing the accounting policy applied to the accounting for a certain contract to determine the most appropriate accounting policy for this type of contract, following the availability of new information relating to that contract, in accordance with International Financial Reporting Standards as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements endorsed by the Saudi Organization for Chartered and Professional Accountants (SOCPA). Our conclusion has not been modified in respect of this matter.
-The comparative information presented in the condensed interim consolidated statement of changes in equity for the six-month period ended June 30, 2025, has also been restated as a result of the Group, through one of its subsidiaries, reassessing the accounting treatment of an increase in its ownership interest in a subsidiary. It was determined that the transaction represented a business combination under common control and, accordingly, the difference arising from the increase in ownership interest should have been recognized directly in retained earnings rather than as goodwill. Our conclusion has not been modified in respect of this matter.
These technical studies and evaluations concluded that the contractual arrangement under the contract does not fall within the scope of service concession arrangements and does not include public service obligations under the relevant interpretations of IFRS. Based on the findings of these studies, an updated accounting treatment was applied to the contract in accordance with IFRS 16 "Leases", to reflect more accurately the economic substance of the related contractual arrangements.
As a result, the Company has restated and reclassified certain comparative figures for the financial period ended June 30, 2025, to reflect the updated accounting treatment and the most appropriate presentation of the relevant financial statement line items.
In addition to the above, the Group restated the comparative figures during the current quarter following an increase in its stake by 15% in Arab Out of Home Advertising Free Zone L.L.C. through one of its subsidiaries during the second quarter ended June 30, 2025. The resulting difference from this transaction, amounting to SAR 18,661,852, was initially recognized as Goodwill during that period. Subsequently, during the fourth quarter of the year ended December 31, 2025, management finalized the assessment of the accounting treatment for the transaction and determined that it represents a business combination under common control. Consequently, the difference resulting from the increase in ownership interest should be recognized directly in Retained Earnings rather than as Goodwill. Accordingly, management restated the comparative information presented in the condensed consolidated interim statement of changes in equity for the six-month period ended June 30, 2025, to reflect this impact.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.