The net profits of Saudi telecom giant STC (7010) decreased by approximately 5.3% YoY in the third quarter of the current year, reaching SAR 4.6 billion.
However, the company’s profits exceeded analysts’ average expectations of SAR 3.5 billion.
Details
STC was impacted by a rise in operating expenses of SAR 440 million from July to September.
Additionally, the company recorded one-time gains of about SAR 1.3 billion in the previous year’s third quarter, resulting from the sale of land in Alkhobar city.
So what
STC, the fifth-largest listed company on the Saudi stock market reported a quarterly revenue increase to SAR 18.6 billion, marking an annual increase of about 3.4%.
This was driven by revenue growth from the company and its subsidiaries in the Kingdom, at rates of 0.5% and 9.7%, respectively.
Some Context
STC achieved record revenues and its highest net profits during the nine months ending September 30.
Its profits exceeded SAR 11 billion, reflecting an annual increase of nearly 2%.
Meanwhile, revenues reached approximately SAR 56.6 billion, up 4%.
The company’s “historical results” are attributed to an 11% growth in revenue from its subsidiaries during the same period.
Earnings per share rose to SAR 2.25, compared to SAR 2.2 in the first nine months of 2023.
Now what
The board of directors decided to distribute cash dividends to shareholders of about SAR 2 billion for the third quarter, at a rate of 0.4 riyals per share.
These dividends are due on November 6 and will be paid on November 26.
