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 from continuing operations at SR 3.72 billion, a 19.5% increase compared to Q1 2024.

• Total comprehensive income rose to SR 4.44 billion from SR 3.37 billion year-over-year, reflecting strong operational and investment performance.

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

• 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.

• Earnings per share (basic and diluted) from continuing operations were SR 0.73, compared to SR 0.61 in Q1 2024.

Outlook and guidance

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

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

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