Jahez delivers strong Q1 2025 results with 185% net income and 128% adjusted EBITDA growth
Riyadh, Saudi Arabia - Jahez International Company for Information System Technology ('Jahez', or the 'Group', 6017 on the Saudi Exchange's TASI – Main Market), announces its financial results for the first quarter of 2025. The Group recorded strong year-on-year (YoY) growth across all geographies and verticals throughout Jahez's ecosystem.
Ghassab Bin Salman Bin Mandeel, CEO of Jahez Group, said:
'We've had a strong start to 2025, staying focused on the fundamentals, profitable growth, operational efficiency and building a strong ecosystem for merchants and users. Our core market in Saudi continues to perform well and we're seeing encouraging progress in Kuwait and Bahrain where we've significantly improved our financial position while maintaining market share.
What's especially promising is the traction we're seeing in our newer verticals which are starting to scale meaningfully. These are important parts of our core strategy to leverage our unique and diversified ecosystem as we create a broader tech-enabled commerce platform.
As we look ahead, we'll keep investing where it matters which are products, people and platform, while staying disciplined on execution. The focus remains on delivering value across the ecosystem and growing in a sustainable way.'
Key Highlights Q1 2025
GMV increased by 10.9% year-over-year to 1.6 billion (15% LFL, with GMV in non-KSA geographies up 15% (17% LFL) and KSA platforms up 10% YoY (13% LFL)
Net Revenue up 9.4% YoY to 526.0 million (Q1 2024: 480.9 million), driven by higher total orders, average order value, and significant growth in advertising revenues and Other Revenues2.
Adj. EBITDA up 128.1% to 51.1 million and representing 9.7% of Net Revenue (Q1 2024: 22.4 million, 4.7% of Net Revenue).
Net Income Attributable to the Shareholders of the Parent Company grew 184.7% YoY to 35.3 million (Q1 2024: 12.4 million)
KSA platforms reached its highest monthly order volume since inception and sustained a strong Adj. EBITDA margin of 11.9% through cost control measures.
Non-KSA platforms significantly improved financial performance with EBITDA losses reduced to 1.9 million in Q1 2025 from 26.5 million last year while maintaining market share.
Logi expanded driver base to 4,260 compared to 1,684 in Q1 2024, while ensuring regulatory compliance in KSA.
Advertising Revenues up 93% YoY, with growth accelerating powered by new ad-product rollouts and strong uptake in merchant adoption and demand.
Other Revenues saw strong growth with revenue increasing 55.5% YoY.
Gross revenue reached 575.5 million, marking a 12% increase YoY, underpinned by higher commissions, advertising revenue, and solid contributions from diversified verticals
Financial Highlights
Jahez Group delivered a strong performance in Q1 2025, with strong revenue growth, increased order volumes, and improved operational efficiencies. The Group reported Q1 2025 Net Revenue of 526.0 million, a 9.4% increase YoY, mainly driven by:
7.3% YoY (12% LFL) rise in total orders, accompanied by a 10.5% increase in the Active Users YoY.
Improved take rate from 14.4% in Q1 2024 to 14.9% in Q1 2025, reflecting successful negotiations with key partners and enhancing value per transaction.
Increased average order value to 63.1 compared to 61.0 in Q1 2024, driven by seasonality offerings and customer purchasing behaviors during Ramadan.
Substantial growth in Advertising Revenues, up 93.2% year-over-year to 30.7 million, driven by new initiatives such as the launch of the Explore and Fawasel functions on the app for improved visibility and user experience, and enhanced geo-targeting algorithms to increase advertising availability. The introduction of the new Reels functionality (Fawasel) to the Jahez app is expected to further boost advertising revenue in the near to mid-term.
Additionally, Other Revenues generated by the Group's new verticals (Sol, Co, and Marn) along with Blu Store Direct Sales, experienced significant YoY expansion of 55.5%.
Gross profit margin (% of Net Revenue) improved by 4.1 percentage points, reaching 24.0% in Q1 2025 (19.9% in Q1 2024), mainly due to cost efficiencies coupled with revenue growth. This improvement in cost structure has supported Jahez's growth initiatives across key cities in KSA and in Non- KSA platforms.
Net Profit attributed to the Shareholders of the Parent Company reached 35.3 million at the end of Q1 2025 (12.4 million in Q1 2024) with a significant increase of 184.7% YoY.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
an hour ago
- Zawya
CITRA plans new regulations for telecom service distributors in Kuwait
KUWAIT CITY - The Communications and Information Technology Regulatory Authority (CITRA) has launched a major initiative aimed at regulating the operations of telecommunications service distributors in Kuwait. These distributors play a crucial role in delivering mobile and virtual communication services to the public on behalf of licensed telecom providers. This regulatory shift signals a broader move towards governance, transparency, and quality assurance in the country's telecom sector. In an official statement, CITRA confirmed that it had prepared a draft regulation titled 'Regulations for Mobile and Virtual Telecommunications Services Distributors', now open for public consultation. The step reflects CITRA's commitment to participatory policy-making and aligns with its goal of improving service standards and market efficiency amid rapid digital transformation. The Authority emphasized that no final regulatory decision will be made without gathering feedback from relevant stakeholders, including telecom operators, legal and technical experts, and current distributors. This consultative approach aims to create a regulatory environment that balances market regulation with investment encouragement and ease of doing business. Licensing requirements outlined The proposed regulation outlines several strict conditions for companies wishing to obtain a license as an 'authorized telecommunications services distributor.' These include: A valid commercial license from a legally recognized entity (LLC or joint-stock company).n A preliminary agreement with a licensed telecom operator outlining their working relationship.n At least ten operational branches within Kuwait.n Submission of detailed business and technical proposals.n Proof of compliance with the national workforce quota.n An annual non-refundable license fee of KWD 5,000 and a matching unconditional bank guarantee.n One-year license validity, renewable upon timely application. CITRA will process completed applications within 21 business days. Lack of response within this period will be interpreted as an implicit rejection. Upon approval, applicants must submit a finalized license contract. Obligations for telecom companies Mobile and virtual telecom providers are also required to meet several responsibilities under the draft regulation. They must: Work exclusively with CITRA-licensed distributors.n Integrate distributor systems directly into their transaction platforms.n Submit regular reports and audits to the Authority.n Ensure distributors are technically capable and well-trained.n Restrict service activation to post-audit approval and verify all activations are tied to actual end users.n Disclose commission structures and report any contractual or regulatory violations.n Duties of authorized distributors Authorized distributors, in turn, must adhere to all CITRA regulations. Key requirements include: Strict prohibition against subcontracting services.n Prior notification to CITRA before signing or renewing agreements with telecom companies.n Issuance of employee identification cards and system-linked user logs.n Installation of surveillance systems at sales points.n Implementation of cybersecurity measures and reporting of any breaches.n Compliance with national labor quotas and proof of employee training and qualification.n General provisions and oversight The regulation also includes general provisions governing both telecom providers and distributors. Highlights include: Shared accountability for compliance with CITRA's rules and national legislation.n Obligatory integration with CITRA-monitored systems for data registration and updates.n Authority oversight over any contractual changes, including termination or renewal.n Provision for exclusive agreements, if contractually stipulated.n CITRA as the sole authority for approving the allocation of services and products.n Mandatory submission of information requested by the Authority and compliance with regulated pricing.n CITRA emphasized that this regulatory overhaul reinforces its position as an institutionally open and professional body. The draft regulation is designed to promote fair competition, improve service quality, and foster a technologically advanced and investor-friendly telecom environment in Kuwait. The Authority invites feedback from industry participants and the public during the consultation phase before moving to finalize the regulation.
Zawya
an hour ago
- Zawya
Iridium and Copley Fund Research partner to unlock GCC investor relations potential
The partnership combines Iridium's consulting expertise with Copley's fund-level data to equip GCC companies with insights to expand their investor base. Early adopters gain a competitive edge by advancing investor relations and attracting GEM funds Dubai - Iridium Advisors, the MENA region's leading investor relations consultancy, has partnered with Copley Fund Research, the leading provider of Global Emerging Markets (GEM) fund data and insights. This exclusive partnership offers GCC-listed companies a unique tool to identify and engage more strategically with the world's largest emerging market investors. The GCC region has seen explosive growth in foreign investment since 2018, driven by the inclusion of four GCC countries (Kuwait, Qatar, Saudi Arabia and UAE) in the Emerging Market universe. Yet, significant untapped potential remains, with only 57% of GEM funds currently allocating to Saudi Arabia and 63% to the UAE. Additionally, overweight positions in GCC markets are far fewer compared to more mature emerging markets, signalling substantial untapped potential. However, many companies struggle to engage effectively with global institutional investors, limiting their access to foreign capital. The exclusive partnership addresses these challenges by combining Iridium's deep regional expertise with Copley's market-leading fund data. GCC public companies now have the ability to analyse the world's largest emerging market fund allocations, pinpoint high-potential investors, and engage directly with investment decision-makers through tailored IR strategies. Companies that adopt these tools early will gain a measurable advantage, enhancing their market presence and attracting international investors. 'This partnership with Copley Fund Research is a game-changer for public companies looking to compete for institutional capital on a global scale,' said Oliver Schutzmann, CEO of Iridium Advisors. 'By combining Iridium's strategic advice with Copley's fund insights, we enable listed companies to stand out in competitive capital markets, attract new investors, and unlock their full valuation potential.' Steven Holden, CEO of Copley Fund Research, added: 'The GCC is an exciting but underinvested region for active Global Emerging Market investors. With strong economic fundamentals and increasing corporate transparency, we are confident this partnership will help drive greater interest and investment into the region. Our collaboration with the market leader marks a new chapter for GCC investor relations, empowering companies to seize the growing opportunities in foreign institutional investment.'
Zawya
an hour ago
- Zawya
KFAED allocates $11.4bln for 540 development projects in Africa
KUWAIT CITY - Acting Director General of the Kuwait Fund for Arab Economic Development (KFAED) Waleed Al-Bahar said Tuesday, the fund financed 540 development projects in more than 50 African countries at a value exceeding USD 11.4 billion. This came as Al-Bahar participated in the Africa Day celebration held at the invitation of the ambassadors and heads of African diplomatic missions accredited to Kuwait to commemorate the founding of the African Union. The fund's operations in Africa and its projects represent approximately 57 percent of its total global activity and have contributed to a qualitative shift in the economies of African countries and improved people's living, said Al-Bahar in a statement. He expressed pride in KFAED's relations with African countries, stressing his commitment to strengthening bilateral relations and achieving greater progress, prosperity, and development for the peoples of the continent through ongoing cooperation. Regarding the Africa Day celebration, Al-Bahar said that the fund is participating for the ninth consecutive year with a special pavilion highlighting its development and humanitarian efforts on the African continent. This year's celebration saw the participation of more than 30 African Union embassies, displaying their cultural and historical heritage through exhibits, collectibles, and craft tools that reflect the diverse professions and activities of each country, he added. KFAED was established in 1961 as the first development institution in the Arab region, before expanding its scope of activities to include developing countries starting in 1974, with its contributions reaching 105 countries to date. Arab Times | © Copyright 2024, All Rights Reserved Provided by SyndiGate Media Inc. (
