Riyadh, Saudi Arabia: Perfect Presentation for Commercial Services Co. (“2P” or the “Company”, 7204 on the Saudi Exchange), a leading ICT solutions provider in Saudi Arabia, has announced its financial results for the nine-month period ending on 30 September 2023 (“9M23”), reporting continued growth for both revenues and net profit. The solid revenue performance is primarily due to Software Development, which increased substantially by 65% year-on-year (“YoY”) and contributed 34% to the total, and Operation and Maintenance, which grew 15% YoY and contributed 33% to the Company’s consolidated revenues.

Financial overview

Revenues increased 16% YoY, from SAR 639 million, to SAR 742 million in 9M23, due to the sustained improvement in Software Development and Operation & Maintenance segments during the period, and partly supported by the launch of managed services earlier this year.

EBITDA amounted to SAR 120 million in 9M23, thus increasing 12% YoY, when compared to SAR 107 million in 9M22, which was supported by the growth in revenues during the period. This translated to an EBITDA Margin of 16.2% in 9M23.

Net Profit increased 6% YoY from SAR 85 million in 9M22 to SAR 91 million, which was primarily the result of the enhanced revenue performance during the period.

Backlog reached SAR 1.5 billion as of 30 September 2023, compared to SAR 1.7 billion at the end of 2022, and the company continued to reinforce its position in the market, in addition to maintaining solid relationships with key business partners in both the public and private sectors.

Ehsan Doughman, CEO of 2P commented: “2P’s robust performance in 9M2023, including the company’s ability to achieve healthy profitability are a true reflection of our continued focus on investing for the future of our business, through providing world class technological solutions that address the continuously evolving needs of our expanding customer base.

Looking ahead, we remain committed to spearheading innovation in our industry, and creating tangible value for our shareholders, customers, and broader stakeholder groups, which is a top priority for us at 2P. This will be achieved through our strategic investments and initiatives in diversification, expansion of our product portfolio, and optimization of our operations, which will enable 2P to unlock a multitude of opportunities and reach new and exciting horizons

Maher Bawadi, CFO of 2P said: “The progress that we have achieved during this financial period speaks to our dedication to fortifying the domestic ICT sector and supporting the Kingdom’s journey towards becoming a leading digital hub in the MENA region.

We have reported solid financial indicators, with a sustained improvement in our top line performance. This was essentially driven by our Software Development and Operation & Maintenance segments and is testament to our focus on expanding our core lines of business. We are also delighted to have successfully grown revenues from Managed Services more than 3-fold and achieved strong profitability across the board.“

Segmental Analysis

Customer Experience revenues declined 16% YoY to SAR 227 million in 9M23 and accounted for 31% of the total revenues. This was primarily due to the successful completion of key projects during the last few quarters. The company continues to focus on exploring new avenues for the growth of its portfolio and is aiming to capitalize on the promising prospects of the business process outsourcing (BPO) market in Saudi Arabia.

Operation and Maintenance witnessed an increase in revenues of 15% YoY from SAR 213 million to SAR 246 million in 9M23 and comprised 33% of the total. This is the result of a robust pipeline of key project awards in addition to the completion of a strategic shift towards managed services for information technology, supported by the use of advanced AI-enabled tools to achieve customers’ desired objectives.

Software Development revenues increased remarkably by 65% in 9M23, from SAR 155 million to SAR 255 million, contributing 34% to the company’s consolidated revenues, which was essentially driven by the  well-established and strategic partnerships with leading global market players, and are targeted at accelerating the company’s innovation drive particularly in sectors such as blockchain, fintech solutions, and collaboration platforms.

Managed Services was launched during the 2nd quarter of 2023 and has since then been on a strong growth trajectory, witnessing the tripling of revenues to SAR 14 million in 9M23 and accounting for 2% of total revenues. 2P remains focused on diversifying its revenue streams and evolving its portfolio to address the rapidly changing needs of its clients.

Revenues by Line of Business

Key highlights during 3Q23

  • 2P was awarded a project by the Royal Commission in Yanbu for a total value of nearly SAR 60 million for the operation and maintenance of the following devices and systems:
  • IP-TV networks / external and internal equipment, channel receivers, satellite dishes, wall screens, and all work related to live broadcasts, surveillance cameras, and time-lapse cameras
  • Audio and video equipment such as projectors, speakers, smart and interactive TV, audio and video equipment and accessories
  • Telephone devices and systems (IP & IP PBX), voice transmission network ports, voice recording systems, call center networks, internet service provision network, inherited systems and equipment, and the internal call network (public address)
  • Fire alarms, public watch systems and security alarms
  • Mobile wireless and wireless network, communication towers and disaster warning devices
  • The Company was awarded an SAR 45 million Operation and maintenance project for the notification reception and relay system (CAD) at the Unified Security Operations Center (911) in Makkah, for the following devices and systems:
  • computer hardware, accessories, and peripherals
  • servers
  • backup systems
  • local and wide area network devices and components
  • the center’s infrastructure devices and systems
  • operating systems
  • geographic applications
  • applications for receiving and analyzing security reports
  • security monitoring, recording and storage systems
  • databases
  • telephone devices and systems (IP & IP PBX), voice transmission port network, and voice data recording systems

Summary Financial Statements

   
    

Balance Sheet
(SAR million)

كما في 31 ديسمبر 2022
 As of 31-Dec-2022

كما في 30 سبتمبر 2023
 As of 30-Sept-2023

الميزانية العمومية

(مليون ريال سعودي)

Current Assets

673

887

الأصول المتداولة

Non-current Assets

134

149

الأصول غير المتداولة

Total Assets

807

1,036

إجمالي الأصول

Current Liabilities

522

657

المطلوبات المتداولة

Non-Current Liabilities

32

35

المطلوبات غير المتداولة

Total Equity

254

344

حقوق المساهمين

Total Liabilities and Equity

807

1,036

اجمالي المطلوبات وحقوق الملكية

    

Income Statement
(SAR million)
For the period ended

30 سبتمبر 2022
 30-Sept-2022

30 سبتمبر 2023
330-Sept-202

بيان الدخل
(مليون ريال سعودي)
للفترة المنتهية في

    

Revenue

639

742

الإيرادات

Gross profit

128

151

إجمالي الربح

Operating Profit

103

116

الربح التشغيلي

Net Profit

85

91

صافي الربح

     

Cash Flow Statement
(SAR million)
For the period ended

30 سبتمبر 2022
 30-Sept-2022

30 سبتمبر 2023
330- Sept-202

بيان التدفقات النقدية

(مليون ريال سعودي)
للفترة المنتهية في

 

Net cash from (used in) operating activities

(175)

(188)

صافي النقد من) المستخدم في( الأنشطة التشغيلية

 

Net cash from (used in) financing activities

162

188

صافي النقد من) المستخدم في( الأنشطة التمويلية

 

Net cash from (used in) in investing activities

(9)

(17)

صافي النقد من) المستخدم في( الأنشطة الاستثمارية

 

Change in cash and cash equivalents

(22)

(18)

التغيير في النقد وما يعادله

 
           

About 2P

Established as a private company in Riyadh in 2004, Perfect Presentation (2P) set out to innovate cutting-edge communications technology and software solutions. Underpinned by a strategic focus on the in-house development of technical and digital transformation services, 2P rapidly established itself as a leading, trusted provider of comprehensive, integrated information and communication technology (ICT) services. 2P provides a wide range of comprehensive ICT services and solutions to its clients through three integrated business units: the Software Development Unit, Operation and Maintenance Unit, and Customer Experience Unit. The Business Units operate in an interconnected and robust environment to provide comprehensive and integrated solutions with the highest quality and excellence standards. The company is listed on Saudi Exchange (Tadawul) under the ticker 7204: Perfect Presentation for Commercial Services Co.

Investor Relations
Ahmad AlJumah
Board Secretary and IR Manager
Perfect Presentation for Commercial Services Co.
Email: IR@2p.com.sa
P.O. Box 105523,
Riyadh 11656, Kingdom of Saudi Arabia
https://www.2p.com.sa/#/