MIS CEO expects better performance in H2 2021; new contract timings cut profit

Ziad Mortaja, CEO of MIS

Al Moammar Information Systems Co. (MIS) is expected to show better performance in the second half of 2021, and maintain growth in its business and projects, CEO Ziad Mortaja told Argaam in an exclusive.

He added that the new projects secured by the company in H1 2021 grew by 36% compared with the same period a year earlier.

The main reason behind the decline in Q2 2021 profit was the timing of receiving and implementing some project contracts and the quality of products and services, that contributed to income generation during the current period compared with a year earlier.

Mortaja further said the diversified services contribute differently to income generation, as each one of them has different profit margins. In addition, MIS allocated an amount against some uncollected bills and spent an amount on its commitment efforts to social responsibilities.

Commenting on the company's current estimated market share compared to the previous year, the CEO said it is difficult to give a specific number in this regard, as MIS provides services and solutions in several specialties.

MIS is among the top five companies operating under the local IT sector, according to the latest report published by the International Data Corp. (IDC), which specializes in research and studies on this sector.

Regarding new projects, Mortaja said the company announced a two-pillar strategic transformation plan this year. The first pillar is restructuring that is aimed at increasing operational efficiency and dealing with the market and sector variables, while the second pillar is entering into new businesses and initiatives that achieve growth.

There are some factors which will contribute to the company's strategic transformation towards continued growth and diversification, such as the initiatives of establishing a distinguished medical solutions firm, as well as building and operating data centers in partnership with the French bank.

These factors also include setting up green data centers with Abunayyan Holding Group, investing in cloud solutions and contributing to the establishment of the digital bank.

The Tadawul-listed firm reported a net profit after Zakat and tax of SAR 26.5 million for the first half of 2021, a fall of 36% from SAR 41.3 million in the same period last year.