Saudi Telecom Company (7010) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 performance with revenue of 19.21 bn and net profit of 3.65 bn, reflecting 1.60% and 11.05% year-over-year growth, respectively.

• Revenue for Q1 2025 reached SR 19.2 billion, up 1.6% year-over-year, with net profit rising to SR 3.7 billion, a 19% increase from Q1 2024.

• Maintained robust cash and equivalents at 28.40 bn and net cash position of 13.27 bn, supporting financial stability.

• The group completed the transfer of TAWAL ownership, now holding a 43.06% stake in the new Digital Infrastructure for Investment Company.

• Recognized as the most valuable telecom brand in the Middle East for the fifth consecutive year and 9th globally.

Financial highlights

• Revenue increased by 1.60% year-over-year, driven by 9.73% growth in the Business Unit and 1.67% in the Commercial Unit.

• Gross profit rose by 5.01% to 9.10 bn, with gross margin improving to 47.36%.

• Operating profit grew 2.02% year-over-year and 20.67% sequentially, with margin up 0.42% year-over-year.

• EBITDA increased by 5.25% year-over-year to 6.12 bn, with margin up 3.59% year-over-year.

• Net profit rose 11.05% year-over-year, with margin improving by 9.30% to 19%.

• Gross profit increased to SR 9.1 billion from SR 8.7 billion year-over-year.

• Operating profit rose to SR 3.6 billion, up from SR 3.5 billion in Q1 2024.

• Net profit from discontinued operations was SR 222 million.

• Cash and cash equivalents at period end were SR 15.9 billion.

• Total assets grew to SR 162.6 billion, with equity at SR 94.0 billion.

• Dividend yield reached 8.60% with a payout ratio of 78%.

Outlook and guidance

• Committed to a fixed quarterly dividend of 0.55 per share for the next three years, with potential for special dividends.

• Special cash dividend of SR 2 per share for 2024 recommended, pending shareholder approval.

• Strategic investments and disciplined Capex approach with Capex intensity at 8.64% for the quarter.