Saudi telecommunications sector listed on TASI profits SR10.8 ‎bln in 9 months ‎

The profits of three telecom companies listed on the Saudi stock market rose to 10.8 billion riyals at the end of the 9 months ending on September 30, 2022, at a rate of 12.2%, compared to their profits in the same period of the previous year, which was 9.6 billion riyals.

The profits of the three companies amounted to about 4 billion riyals at the end of the third quarter of this year, 22.5% higher than their profits in the third quarter of 2021, which were 3.3 billion riyals, which came better than the average expectations of think tanks by 15.5%, which indicated that about 3.5 billion riyals were recorded

According to the quarterly results, the three companies achieved a growth in their profits, led by Zain Saudi Arabia, which achieved unexpected profits by the end of the third quarter of this year, and recorded 85 million riyals, an increase of 41.7% over its profits in the third quarter of 2021, which came below the average expected of 35.6%, which indicated that the company recorded 132 million riyals of profits by the end of the third quarter of the year 2022. According to the company, the growth in profits compared to the same quarter of the previous year is due to an increase in revenues by 15%, as a result of For growth in the business sector, fifth generation services, and the return of international visitors (to work and perform Umrah), after easing the precautionary measures to combat the Corona pandemic, and this increase came despite the increase in the cost of revenue by 23%, an increase of 170 million riyals.

She added, the operating expenses increased by 151 million riyals, and the amortization and depreciation expenses decreased by 115 million riyals, related to the announced offers to acquire stakes in the infrastructure of Zain Saudi Arabia towers. On the other hand, the financing cost increased by 39 million riyals as a result of the increase in the reference price for the financing cost in Saudi riyals (SIBOR) and the reference price for the financing cost in US dollars (LIBOR).

stc achieved 3.5 billion riyals at the end of the third quarter of 2022, an increase of 21.1% over its profits in the same quarter of the previous year, which was 2.9 billion riyals, 19% higher than the average forecast, which was 2.98 billion riyals. The reason for the company’s growth in profits during the third quarter of 2022 AD by an amount of 617 million riyals compared to the same quarter of the previous year is mainly due to an increase in revenues by 732 million riyals, which was offset by a decrease in revenue costs by 939 million riyals, which is mainly due to the reversal of the provision a potential commitment of 1,079 million riyals, which led to an increase in the total profit by 1,671 million riyals.

On the other hand, Mobily recorded 373 million riyals in profits at the end of the third quarter of 2022, an increase of 32.7% over its profits in the third quarter of the previous year, which was 281 million riyals, while it was better than the average expectations that indicated 355 Million riyals, and Mobily’s profits rose mainly due to the support of raising its revenues in the third quarter of the fiscal year 2022 AD, reaching 3.828 million riyals, compared to 3,606 million riyals in the same quarter of the previous year, an increase of 6.16% as a result of the growth in revenues of all sectors The company, in addition to the growth of the fiber-optic subscriber base and the increase in the customer base.