Rising Revenues, Operational Efficiency Boost Profits of Saudi Telecom Companies

Telecom towers (AFP)
Telecom towers (AFP)
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Rising Revenues, Operational Efficiency Boost Profits of Saudi Telecom Companies

Telecom towers (AFP)
Telecom towers (AFP)

Saudi Arabia’s listed telecom companies saw a 69% surge in net profits by the end of 2024, reaching SAR 28.39 billion ($7.57 billion), compared to SAR 16.79 billion ($4.5 billion) in 2023. This growth was driven by higher revenues, an expanding customer base, and improved operational efficiency.

The sector includes four companies: stc (Saudi Telecom Company), Mobily (Etihad Etisalat), Zain Saudi Arabia (Mobile Telecommunications Company Saudi Arabia), and GO (Etihad Atheeb Telecom). The first three follow a December fiscal year-end, while GO’s fiscal year ends in March.

According to financial disclosures on Saudi Arabia’s stock exchange (Tadawul), stc accounted for 87% of the total sector profits in 2024. The company’s net profit soared to SAR24.7 billion, up 85.7% from SAR13.3 billion in 2023. stc attributed this growth to higher revenues and gains from discontinued operations.

Mobily ranked second in terms of profitability, with a net profit of SAR3.11 billion, reflecting a 39.2% increase from SAR2.23 billion in 2023. The company credited this growth to higher revenues across all segments, an expanding customer base, improved operational efficiency, and lower financing and tax expenses.

In contrast, Zain Saudi Arabia saw a 52.96% decline in net profit, falling to SAR596 million from SAR1.27 billion in 2023. The company attributed this drop to higher operational expenses and increased provisions for expected credit losses. Despite this, Zain fulfilled all its financial obligations for 2024, amounting to SAR1.8 billion.

Mohammed Hamdi Omar, CEO of G-World Research, told Asharq Al-Awsat that the telecom sector’s financial performance highlights its strength and growth potential, particularly for industry leader stc.

“The 85.7% surge in stc’s profits reflects its success in diversifying revenue streams. This is evident in its entry into the financial sector with its digital wallet (now STC Bank), investments in IoT, entertainment, consultancy, and IT outsourcing, as well as enhanced operational efficiency,” Omar explained.

Commenting on Zain’s profit decline, Omar noted that the company needs to reassess its operational and financial strategies, especially considering rising operational costs and credit losses. However, he highlighted that Zain’s ability to meet all financial obligations is a positive indicator of its financial management.

Financial markets analyst Tariq Al-Ateeq told Asharq Al-Awsat that Saudi telecom firms have strong potential for continued profit growth. He emphasized that focusing on enterprise services, keeping pace with technological advancements, and diversifying revenue sources will be key to sustaining growth.



Saudi Arabia’s Diriyah Named Among Global Eco-Friendly Destinations for 2025

The recognition stems from a joint effort between the Saudi Tourism Authority and the Diriyah Gate Development Authority. (SPA)
The recognition stems from a joint effort between the Saudi Tourism Authority and the Diriyah Gate Development Authority. (SPA)
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Saudi Arabia’s Diriyah Named Among Global Eco-Friendly Destinations for 2025

The recognition stems from a joint effort between the Saudi Tourism Authority and the Diriyah Gate Development Authority. (SPA)
The recognition stems from a joint effort between the Saudi Tourism Authority and the Diriyah Gate Development Authority. (SPA)

Saudi Arabia’s Diriyah has been named one of the Global Eco-Friendly Destinations for 2025 by the British travel platform Wanderlust, which annually highlights leading destinations committed to sustainable tourism.

The recognition stems from a joint effort between the Saudi Tourism Authority and the Diriyah Gate Development Authority, which submitted a comprehensive nomination highlighting Diriyah’s initiatives in environmental, cultural, and tourism sustainability.

Chief Executive Officer and Board Member of the Saudi Tourism Authority Fahd Hamidaddin stated that Diriyah’s selection underscores the Kingdom’s growing commitment to sustainability in tourism.

“This recognition is a testament to our strategy of empowering local partners and showcasing national destinations in international markets,” he said. “It further solidifies Saudi Arabia’s position on the global tourism map as the fastest-growing destination in the world.”

Chief Executive Officer of the Diriyah Gate Development Authority Jerry Inzerillo said: “This international recognition highlights Diriyah’s role as the cradle of the Saudi state and our dedication to preserving its heritage while applying the highest environmental and cultural sustainability standards.”

“We value the continued collaboration with the Saudi Tourism Authority, which is instrumental in promoting Saudi destinations on the world stage.”

The recognition reaffirms the Kingdom’s expanding global presence in tourism, driven by Vision 2030. The Saudi Tourism Authority continues to support its partners across the tourism ecosystem, aligning efforts to meet ambitious national targets.

In 2024, the Kingdom welcomed approximately 116 million visitors and remains on track to reach its goal of hosting 150 million visitors by 2030. This growth is supported by significant infrastructure investments and vibrant tourism seasons featuring hundreds of immersive experiences and partnership opportunities.