The company said in a statement posted on the Saudi stock exchange’s website, Tadawul, that first-quarter revenue rose to 18.2 billion riyals, up 7.5% from around 16.9 billion. riyals over the same period of 2022.
On a quarterly basis, the company’s net profit in the first three months of 2023 increased by 12.8%, compared to 2.7 billion riyals in the last quarter of last year, while revenues increased by 6.7% over the same period.
In a separate statement to Tadawul, STC said cash dividends will be distributed to shareholders for the first quarter of 2023, at 0.4 riyals per share.
The Saudi Telecom Company (STC) was established in 1998 and is listed on the Saudi Stock Exchange, with the Saudi Sovereign Wealth Fund owning 64%. It invests in telecommunications companies in other countries, including Bahrain and Kuwait, according to company data on the Saudi Stock Exchange website.
STC said higher revenue and lower expenses contributed to the increase in net profit during the first quarter.
According to the statement, the reason for the increase in net profit in the first quarter of the year 2023 by 74 million riyals compared to the same quarter of the previous year is mainly due to the following reasons:
Revenues increased by 1.26 billion riyals, which was offset by an increase in revenue costs of 1.05 billion riyals, resulting in an increase in gross profit of 204 million riyals. A decrease in total other expenses of 186 million riyals, mainly due to an increase in financing income of 250 million riyals.
On the other hand, operating expenses increased by 297 million riyals, mainly due to the company’s strategic investments aimed at growth and expansion into new business areas, which resulted in an increase general and administrative expenses of 244 million riyals, and depreciation and amortization expenses. by 137 million riyals, which was offset by a decrease in sales and marketing expenses of 83 million riyals, according to the company’s statement.
Meanwhile, earnings before depreciation, amortization, interest, zakat and taxes (EBITDA) for the first quarter came to 6.3 billion riyals, compared to 6.3 billion riyals for the same quarter of the year. previous year, an increase of 0.68%.
The total number of non-dividend treasury shares allocated to the employee incentive program amounted to 17,821,798 shares until the end of the first quarter of 2023, and therefore the basic earnings per share were calculated on the basis of the weighted average number of shares of 4,982,178 shares (in thousands) for the first quarter of 2023.
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