Riyadh - Mubasher: Arabian Contracting Services Company (Al Arabia) shifted to net losses of SAR 205.58 million for the first half (H1) of 2026, compared to a net profit of SAR 129.70 million during the same period in 2025.
The company attributed the downturn to a 29.09% decline in revenues, which fell to SAR 679.58 million from SAR 958.40 million.
For the second quarter (Q2) of 2026, the company recorded a net loss of SAR 214.46 million, representing a 548.20% increase in losses compared to the SAR 33.09 million loss reported in the prior-year quarter. Quarterly revenue dropped by 37.98% to SAR 263.93 million.
Management cited regional geopolitical tensions and a subsequent decline in advertising expenditure as primary drivers for the cancellation of several campaigns and reduced client budgets.
Profitability was further pressured by rising costs associated with the operation of new advertising sites and increased rental and depreciation expenses.
The company noted that these costs rose despite the advertising network for certain contracts not being fully completed.
Loss per share for the six-month period stood at SAR 3.74, compared to earnings per share of SAR 2.36 in the previous year. Total shareholders' equity decreased by 10.24% to SAR 1.34 billion.
At the end of March 2026, the company’s net profits after tax fell by 94.54% to SAR 8.88 million from SAR 162.78 million in Q1-25.
