Riyadh, Saudi Arabia — Elm Company, which is owned by the Public Investment Fund, reported a net profit of SAR 1.02 billion ($272 million) in the first nine months of 2023, up 43 percent from SAR 718 million a year earlier.
The profit growth was driven by a 27.74 percent revenue increase, which led to a rise in gross profit by 28.70 percent (SAR 384 million), Argaam reported.
The rise in revenue resulted from a surge in digital business revenue by 42.70 percent, offset by a decrease in business process outsourcing revenue by 0.59 percent and lower professional services revenue by 2.56 percent.
Furthermore, income from Murabaha deposits increased by SAR 74 million.
On the other hand, operating expenses grew by 20 percent (SAR 116 million), as a result of an increase in general and administrative expenses by SAR 78 million, selling and marketing expenses by SAR 31 million, depreciation and amortization expenses by SAR 20 million and expected credit losses expenses by SAR 15 million, Argaam reported.
This was partially offset by lower impairment of intangible assets expenses by SAR 28 million. In addition, Zakat expense increased by SAR 24 million.
The third-quarter net profit grew 22.2 percent to SAR 334 million, from SAR 273.36 million in Q3 2022.
The Q3 2023 earnings dropped 10.4% from SAR 372.77 million in the previous quarter.
Total shareholders’ equity, no minority interest, reached SAR 3.63 billion as of Sept. 30, 2023, compared to SAR 2.84 billion a year earlier.