Elm's quarterly profits increased by 77% in the second quarter of 2022, to 195 million riyals, compared to 110 million riyals in the second quarter of 2021.


According to Arabiya Net, profits fell by 22% quarterly, compared to the profits of the previous quarter, which was 250 million riyals.


During the first six months of 2022, the company achieved profits of 444 million riyals, compared to 297 million riyals, in the corresponding period of 2021, an increase of 59%.


The company said that what supported the profits of the second quarter, the increase in revenues by 2.1% (21 million riyals), which contributed to the increase in the total profit by 25.3% (77 million riyals).


This increase in revenue resulted from the increase in the digital business sector by 19.1%, and the increase in the professional services sector by 62.8%. This was partially offset by the 27.5% drop in the Business Attribution sector.


On the other hand, operating expenses decreased by 15.7% (27 million riyals), as a result of a decrease in expected credit losses expense by 41 million riyals, partially offset by an increase in selling and marketing expenses by 5 million riyals, and an increase in general and administrative expenses by 8 million riyals.


In addition, other expenses increased as a result of recording a decrease in the value of intangible assets by 27 million riyals, and an increase in zakat expense by 5 million riyals.


Elm reported that the decline in profits on a quarterly basis is due to a decrease in revenues by 4.9% (53 million riyals), which contributed to a 6% decrease in total profit (24 million riyals). This decline in revenue resulted from a decline in the Business Outsourcing segment of 25.8%, and a decline in the Professional Services segment of 13.3%, partially offset by an increase in the Digital Business segment of 8.1%.


On the other hand, operating expenses increased by 4.7% (7 million riyals), as a result of an increase in selling and marketing expenses by 1 million riyals, and an increase in general and administrative expenses by 11 million riyals, partially offset by a decrease in the expected credit loss expense by 6 million.


In addition, other expenses increased as a result of recording a decrease in the value of intangible assets by 27 million riyals.