Data centers lift Al Moammar revenue 88%, but profit falls 16%

Summary

• Al Moammar's nine-month revenue reached 1,861.88 million riyals, up 88% on data center project execution.
• Net profit fell 16.2% to 76.42 million riyals as financing costs and credit provisions climbed.
• The build-out is generating volume faster than it generates earnings, squeezing the bottom line.

The latest

Al Moammar Information Systems booked 1,861.88 million riyals in revenue over the first nine months of 2026, an 88% jump the company attributed mainly to progress on data center projects alongside growth in its core IT and telecom segments. Net profit moved the other way, falling 16.2% to 76.42 million riyals. The board separately approved a 30 million riyal interim cash dividend for the second quarter.

Details

• The headline numbers: Nine-month revenue hit 1,861.88 million riyals versus 990.21 million a year earlier, according to the Saudi Exchange disclosure. Gross profit rose 43.9% to 333.35 million riyals and operating profit gained 46.9% to 143.64 million, meaning the profit decline sits entirely below the operating line.
• The quarter: Third-quarter revenue reached 951.8 million riyals against 280.37 million a year earlier, a 239.5% increase, and up 59.9% from the prior quarter's 595.19 million. Quarterly net profit still slipped to 20.77 million riyals from 25.1 million, and more than halved from 43.52 million in the second quarter.
• What ate the profit: The company attributed the nine-month decline primarily to a 3.97 million riyal fair-value loss on investments, against gains of 46.42 million a year earlier, a swing of roughly 50 million riyals. Financing costs rose 21.47 million riyals, tied mainly to funding requirements for the large data center projects.
• The provisions: Operating expenses over nine months rose 55.81 million riyals, driven mainly by non-cash expected credit loss provisions on trade receivables totaling 41.92 million riyals, the disclosure said. In the third quarter alone the credit provision stood at 28.04 million riyals, with selling and marketing costs up a further 5.4 million.
• Per-share and equity: Earnings per share fell to 2.55 riyals from 3.04 a year earlier. Total equity attributable to shareholders, excluding non-controlling interests, declined 5.5% to 368 million riyals from 389.6 million, even as the revenue base nearly doubled over the same period.
• The dividend: The board decided on 9 November 2026 to distribute 30 million riyals in interim cash dividends for the second quarter, at 1 riyal per share across 30 million shares, equal to 10% of nominal share value. Eligibility falls on 12 November and payment on 22 November.
• Payment mechanics: Distribution will run through Banque Saudi Fransi by direct transfer to bank accounts linked to shareholders' investment portfolios. Cash dividends transferred through a resident financial intermediary to non-resident investors are subject to 5% withholding tax, according to the announcement.
• The auditor: The interim results carry an unmodified opinion from the auditor, the filing stated. The company did not publish a revenue or margin outlook for the fourth quarter, nor a timeline for completion of the data center projects driving the revenue surge.

Background

Al Moammar Information Systems, listed on the Saudi Exchange under code 7200, operates in IT and telecom services. Data center construction has become a major revenue line for regional IT integrators, requiring heavy upfront project financing.

Between the lines

The gap between a 46.9% rise in operating profit and a 16.2% drop in net profit is the whole story: the data center work is profitable at the operating level, but the debt funding it and the receivables it generates are consuming those gains. The 41.92 million riyal credit loss provision suggests collection risk is scaling alongside contract size.

What's next

Full-year results will show whether margins recover once the current data center projects move past their heaviest financing phase. Dividend eligibility closes 12 November, with payment due 22 November.

Source: Saudi Exchange (Tadawul) — Al Moammar Information Systems disclosures