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 first half ending on 30 June 2023 (“1H23”), reporting continued growth for both revenues and net profit. The robust revenue performance is attributed to Software Development, which increased 42% year-on-year (“YoY”) and contributed 33% to the total, and Operation and Maintenance, which grew 18% YoY and contributed 34% to the Company’s consolidated revenues, in addition to the launch of managed services during the period.

Financial overview

Revenues increased 9% YoY, from SAR 432 million, to SAR 471 million in 1H23, as a result of continued growth of Software Development and Operation & Maintenance segments during the period, and the launch of managed services, which started generating revenues in the 2nd quarter.

EBITDA amounted to SAR 74 million in 1H23, thus increasing 12% YoY, when compared to SAR 66 million in 1H22. This was driven by the improvement in the topline performance, which has outpaced the rise in selling, general, and administrative expenses. This translated to an increase in EBITDA Margin from 15.4% to 15.8% in 1H23.

Net Profit increased 8% YoY from SAR 53 million in 1H22 to SAR 57 million, which was essentially driven by the solid revenue performance during the period.

Backlog reached SAR 1.7 billion as of 30 June 2023, compared to SAR 1.7 billion at the end of 2022, thus sustaining its growth, and continues to be strengthened  by the strong market positioning of 2P, as well as its well-established relationships with key organizations in both the public and private sectors.

Ehsan Doughman, CEO of 2P commented: “The solid performance of 2P during the first half of the year is indeed testament to our leading position in the Kingdom’s rapidly growing ICT market, as we continued to introduce new and tailored cutting-edge technological solutions to our growing customer base, whilst driving innovation in everything we do.

We are delighted that our managed services line of business has started generating revenues during the 2nd quarter, and we are looking forward to further enhance its contribution to our business growth. The prospects for this sector are very promising in Saudi Arabia, as a result of the rising demand for outsourcing non-core operations across various industries, and the increasing adoption of cloud-based solutions, supported by large-scale investments by the government.

At 2P, we remain focused on operational excellence whilst reinforcing our strategic partnerships with globally renowned technology companies, to elevate our products and services further, enhance our market share and accelerate our growth.“