Elm beats estimates as Q3 profit jumps 39%

Saudi digital-services company Elm reported third-quarter net profit of SAR 778 million, up 39.2% from a year earlier and ahead of the average analyst estimate. Revenue rose a more modest 10.1% to SAR 2.79 billion, but its digital-business revenue climbed 19.9%, offsetting declines in business outsourcing and professional services. The much faster rise in profit also reflected an 18.3% increase in gross profit and slightly lower operating expenses, suggesting that the company’s faster-growing digital work is improving the earnings mix rather than simply adding sales.