Saudi Telecom Company (7010) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of SAR 75.89 bn in FY 2024, up 5.73% year-over-year, driven by strong subsidiary and commercial unit performance and strategic execution.

• Net profit surged 85.7% to SAR 24.69 bn, with normalized net profit up 13% after excluding non-recurring items.

• Maintained leadership as the most valuable telecom brand in the Middle East and ranked 9th globally, with brand value up 16% to SAR 60.4 bn.

• Completed major strategic partnerships and acquisitions, including a 9.97% stake in Telefónica, the sale of a 51% stake in TAWAL, and the launch of a digital bank.

• Board recommended additional cash dividends, totaling SAR 3.75 per share for 2024, with a special cash dividend of SAR 2 per share subject to approval.

Financial highlights

• Revenue reached an all-time high of SAR 75,893M (up 5.73% YoY), with Q4 2024 revenue up 9.59% year-over-year.

• Gross profit increased by SAR 2.6 bn, with Q4 2024 gross margin at 48.88%, up 5.32% from Q4 2023.

• Operating profit rose 9.61% to SAR 14.43 bn, with margin improving to 19.01%.

• EBITDA grew 6.6% to SAR 23.93 bn, with Q4 EBITDA up 13.57% year-over-year.

• Cash and equivalents at SAR 30.76 bn (up 9.3% YoY); free cash flow at SAR 8.18 bn (down 35.2% YoY); total shareholders' equity at SAR 89.42 bn (up 13.2% YoY).

Outlook and guidance

• Expects continued subscriber growth, supported by a 1.5% increase in Saudi population and 5.5% rise in foreign population.

• Focus on cost efficiency, innovation, and strategic investments to drive sustainable growth and expansion in digital infrastructure and financial services.

• New dividend policy commits to SAR 0.55 per share per quarter for the next three years, with potential for special dividends.

• Ongoing commitment to maximizing investor returns through enhanced dividend policy.