Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 16.8 percent growth in their net profits by the end of 2023, bringing their profits to SAR 16.8 billion ($4.5 billion) during the past year, compared to SAR 14.38 billion ($3.8 billion) in 2022.
This surge is mainly due to increased revenues and investments in new areas and services.
The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia.
The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.
According to its financial results in the Saudi Stock Exchange (Tadawul), the Saudi Telecom Company (STC) acquired about 79.2 percent of the sector’s total profits, at the end of 2023, announcing the growth of net profits to about SAR 13.3 billion in 2023, compared to SAR 12.17 billion in 2022, with an increase of 9.24 percent.
According to STC, the growth of net profit is due to increased revenues, as well as the company’s continued investment in new areas, in accordance with its approved strategy.
Etihad Etisalat (Mobily) ranked second, achieving a net profit of SAR 2.23 billion in 2023, compared to SAR 1.66 billion in 2022, an increase of 34.7 percent.
The company attributed the rise in profits to the growth of revenues and customer base, as well as the company’s efficient operational management.
The net profits of Saudi Mobile Telecommunications Company (Zain) jumped to SAR 1.27 billion in 2023, compared to SAR 550 million during the previous year, an increase of about 130.36 percent.
Commenting on the sector’s results, financial markets analyst Abdullah Al-Kathiri told Asharq Al-Awsat that the rise in net profits of the telecom sector companies was due to the continuous expansions and acquisitions in several locations, in addition to non-operating revenues from some lands, real estate and towers.
For his part, the economic analyst and CEO of G-World, Mohamed Hamdi Omar, attributed the growth in net profits to the companies’ strategies to access multiple sectors, including cyber-security, live broadcast over the Internet (OTT) and financial technology.
