Profits jump for PIF’s Elm digital services company

• Elm Company profits surge 40%
• Net profit of $132 million
• Plans for an acquisition spree

Elm Company, a digital services company controlled by Saudi Arabia’s Public Investment Fund, said first-quarter profit surged more than 40 percent on higher sales.

Net profit in the three months to March 31 jumped to SAR495 million ($132 million), the company said in a statement to the Saudi stock exchange, where 30 percent of its shares are traded.

Elm said its assets were worth SAR9.5 billion at the end of last year. It is on an acquisition spree in support of the government’s Vision 2030 economic transformation targets, which include creating a digital ecosystem to support private and public sector growth.

• Elm buys PIF’s technology unit for $907m
• PIF’s US portfolio weathers ‘Liberation Day’ storm
• PIF raises $1.25bn from year’s second debt sale

It is looking for its acquisitions to contribute about a fifth of revenue over the next five years.

Last month, Elm announced the completion of its acquisition of Thiqah Business Service Company, which was wholly owned by PIF, for SAR3.4 billion. 

Thiqah’s financial statements will be consolidated with those of Elm this quarter.

Elm’s stock price has increased by almost 13 percent in the past 12 months, while the exchange’s main Tadawul All Share Index has declined almost 9 percent over the same period.