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Arabian Contracting Services Co. Announces Signing a Contract with Riyadh Airports Company for Purpose of '' Construction and Operation of Advertising Billboards at King Khalid International Airport in Riyadh City''.
| Element List | Explanation |
|---|---|
| Introduction | Referring to the announcement of Arabian Contracting Services Co. on 22-05-2023 Corresponding to 02-11-1444, regarding winning the bid for ''construction and operation of Advertising billboards at King Khalid International Airport in Riyadh City" which was offered by Riyadh Airports Company. Arabian Contracting Services Co. would like to announce signing of a contract on Thursday 26-10-2023 corresponding to 11-04-1445 for construction and operation of advertising billboards at King Khalid International Airport in Riyadh City with Riyadh Airports Company for a duration of 10 years, commencing on 01-01-2024 and renewable for another period or similar periods, subject to a written agreement of both parties. This contract is based on net revenue sharing model or the annual minimum guarantee -which is higher -. |
| Date of Announcement of the Award | 2023-05-22 Corresponding to 1444-11-02 |
| Contract Subject Matter | A contract for Construction and Operation of Advertising Billboards at King Khalid International Airport in Riyadh City. |
| Date of Signing the Contract | 2023-10-26 Corresponding to 1445-04-11 |
| Contract Value | Net revenue sharing or the annual minimum guarantee -which is higher -, according to the terms of the contract. In the 1st year of the contract, will be shared a percentage of the generated net revenue with Riyadh Airports Company, without applying the annual minimum guarantee. Starting from the 2nd year until the end of the contract, the business model will be based on net revenue sharing or the annual minimum guarantee -which is higher-. The total annual minimum guarantee amounts starting from the 2nd year until the 10th year are SAR 1,822,462,500 (excluding value-added tax), which will be distributed progressively over the 9 years, according to the terms of the contract. |
| Contract Details | The total number of billboards is 525 and they are fully digital billboards, 90 billboards are located on the highway leading to King Khalid International Airport, and 435 billboards are positioned inside the airport. These billboards will be strategically distributed among various international and domestic terminals, as well as private aviation. The duration of the contract is 10 years, commencing on 01-01-2024 and renewable for another period or similar periods, subject to the written agreement of both parties, where the contract includes a preparation period up to 12 months. In the 1st year of the contract, will be shared a percentage of the generated net revenue with Riyadh Airports Company, without applying the annual minimum guarantee. Starting from the 2nd year until the end of the contract, the business model will be based on net revenue sharing or the annual minimum guarantee -which is higher-. |
| Contract Duration | 10 Years. |
| Financial Impact and the Relevant Period | The financial impact will become apparent in the first quarter of 2024. |
| Related Parties | N\A |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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