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Arabian Contracting Services Co. announces the abandonment of a contract for leasing locations 40 (digital) advertising screens on bridges and tunnels in the city of Jeddah.
| Element List | Explanation |
|---|---|
| Introduction | In reference to the announcement made by the Arabian Contracting Services Company on Tadawul website dated 1443-07-14 (corresponding to February 15, 2022) regarding the signing of a contract to lease locations for the installation of 40 (digital) advertising screens on bridges and tunnels in the city of Jeddah. Arabian Contracting Services Co. announces that the municipality has approved the abandonment of the agreement on 1446-05-05 (corresponding to November 7, 2024) due to some obstacles that had a fundamental impact on the project’s profitability. The Company expects to generate revenue from the Jeddah media market mainly through its subsidiary, Faden Media Agency Company, which has a significant presence through an advertising contract with the Jeddah Municipality. Furthermore, additional investments are being generated from Faden's investment in one of the companies that holds two major contracts with the Jeddah Municipality, thereby creating savings based on the economies of scale from a cost perspective. |
| Previous Announcement | Arabian Contracting Services Co. announces winning the bid for 40 Digital Billboards to be installed on bridges and tunnels in Jeddah City. |
| Date of Previous Announcement on Saudi Exchange’s Website | 2022-02-15 Corresponding to 1443-07-14 |
| Hyperlink to the Previous Announcement on the Saudi Exchange Website | Click Here |
| Latest Developments Of The Announced Event | The abandonment of the contract with Jeddah Municipality: 1- Leasing locations for the installation of 40 (digital) advertising screens on bridges and tunnels in Jeddah. 2- The total value of the contract amounted to 1,000,160,000 SAR over the period of 10 years. |
| The costs associated with the event, and if they have changed or not with indication of the reasons. | N/A |
| Additional Information | The Financial impact: 1- Reduction of lease liabilities by 620,831,145 SAR. 2- Accounting profit from the disposal of the lease contract amounting to 21,930,914 SAR 3- Monthly reduction in right-of-use depreciation by 6,963,956 SAR. 4- Monthly reduction in lease finance costs by 2,488,483 SAR. 5- Reduction of net right of use asset by 598,900,231 SAR. |
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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