Riyadh, Saudi Arabia — United Electronics Company (Extra) posted a 16.79% year‑on‑year increase in Q2 2025 net profit to SAR 124.5 million, up from SAR 106.6 million in Q2 2024. On a quarterly basis, profits rose 20.4% from SAR 103.44 million in Q1 2025. The Extra Q2 2025 earnings Saudi Arabia report highlights rising revenue, improving margins, and significant support from its finance arm, Tasheel.

Revenue, Margins, and Finance Drive Earnings Growth

Extra saw Q2 revenues climb by 10.6% year-on-year to SAR 2.12 billion, while gross profit increased 16.5% to SAR 455.2 million. The company’s profit margin rose by 1.1 percentage points to 21.4%, thanks to improved sales mix and growth in consumer financing.

Tasheel, Extra’s subsidiary, played a central role in earnings. In Q2 2025, it contributed 48% of Extra’s group net profit, with Extra itself contributing 52%.

Tasheel: Fast‑Growing Financing Powerhouse

Tasheel’s loan portfolio surged 30% to SAR 2.85 billion, driven by a 60% increase in sales and customer base in H1 2025. The average financed product value per customer reached approximately SAR 27,000 over a 42-month plan. Since its IPO in December, Tasheel has exceeded forecast growth, posting 30% growth versus the 18–19% projected in its prospectus.

CEO Mohammed Galal told Al Arabiya Business that strong marketing and promotions boosted like‑for‑like sales, which helped Extra gain market share despite sector headwinds. He emphasized that Extra’s financing partners include Tabby, Tamara, Tasheel, and Basita. However, unlike BNPL services, 77% of Extra’s finance business is cash-based, underlining the strength of its conventional financing model.

 

 

The Saudi Standard’s View: A Twin-Engine Growth Strategy in Play

The Extra Q2 2025 earnings Saudi Arabia release points to a retail model evolving into a financing powerhouse. The headline 16.8% profit growth masks a more strategic transformation: Extra isn’t just selling electronics—it’s monetizing consumer credit.

Tasheel’s contribution—now nearly half of the group’s net profit—suggests a quiet shift. Retail earnings increasingly rely on finance income, which tends to be more resilient in down cycles. This is particularly notable in a high-rate environment, where BNPL models face pressure. Extra, by contrast, leans on longer-tenure installment plans and a sizable average ticket of SAR 27,000. That creates recurring revenue with embedded customer loyalty.

Yet, this strategy carries risk. As credit portfolios grow, so do provisions and potential impairments. Extra must balance Tasheel’s rapid expansion with strict risk controls, particularly as personal indebtedness rises nationwide.

Meanwhile, Extra’s brick-and-click integration remains a strength. Like-for-like sales growth implies consumers aren’t just borrowing but spending with intention. This aligns with broader Vision 2030 themes: rising middle-class consumption, access to structured credit, and tech-driven commerce.

The big picture? Extra is becoming a hybrid between a retailer and a lender. If Tasheel’s growth remains prudent, this dual-engine approach may set the tone for Saudi retail in the next decade.

 

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