Saudi Telecom Company (7010) Q3 2024 earnings summary

Executive summary

• Achieved record nine-month revenue of SAR 56.63 bn, up 3.92% year-over-year, and net profit of SAR 11.23 bn, up 1.92% year-over-year, driven by growth in mobility, residential, and subsidiary segments.

• Board recommended a 37.5% increase in annual cash dividends, raising payouts from SAR 8 bn to SAR 11 bn for the next three years, with a new policy of SAR 0.55 per share per quarter and potential for special dividends.

• Maintained leadership in ICT, consumer, and enterprise segments in Saudi Arabia, recognized as the most valuable telecom brand in the Middle East.

• Strong cash position with SAR 24.44 bn in cash & equivalents and net cash of SAR 9.12 bn, reflecting robust financial stability.

• Recognized for fastest and most widespread mobile network coverage in Saudi Arabia.

Financial highlights

• Q3 2024 revenue reached SAR 18.96 bn, up 3.38% year-over-year; nine-month revenue up 3.92% to SAR 56.63 bn.

• EBITDA for Q3 2024 rose 17.91% sequentially to SAR 6.79 bn, margin at 36.40%; nine-month EBITDA up 4.65% to SAR 18.36 bn.

• Net profit for Q3 2024 was SAR 4.90 bn, up 40.53% sequentially but down 5.32% year-over-year due to a one-time gain in Q3 2023.

• Free cash flow increased 24.13% to SAR 4.66 bn; net cash from operating activities up 19.10% to SAR 11.90 bn.

• Total assets reached SAR 161.85 bn, up 3.73% year-over-year; total debt declined 31.08% to SAR 15.33 bn.

Outlook and guidance

• New dividend policy approved: SAR 0.55 per share per quarter for the next three years starting Q4 2024, with potential for special dividends.

• Dividend policy reflects confidence in sustainable operating cash flows and continued expansion and diversification.

• Ongoing investments in 5G, digital infrastructure, and strategic partnerships to drive future growth and innovation.