EU Summit Highlights Fair Jobs, Economic Growth

EU Summit Highlights Fair Jobs, Economic Growth
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EU Summit Highlights Fair Jobs, Economic Growth

EU Summit Highlights Fair Jobs, Economic Growth

More than 20 EU leaders met in the Swedish city of Gothenburg on Friday to discuss social issues, including jobs, economic growth, education and culture, for the first such summit in 20 years.

The summit, named the Social Summit, aims to provide EU member states with new impetus to ensure that citizens have access to jobs with fair working conditions and that the labor market can remain competitive in the face of global and demographic changes.

Swedish Prime Minister Stefan Löfven, who co-chaired the meeting with European Commission President Jean-Claude Juncker, said the summit was timely and highly needed to refocus the energies of the EU and member states on social welfare.

"Our economies and the world of business have changed drastically, which means our challenges are also changing, and we need new solutions to tackle them," Leuven said.

"These changes in the labor market, especially after the 2008 financial crisis, have led citizens to have growing political distrust," he added. "It is time for us to put people at the top of our priorities."

EU leaders participating in the meeting are expected to endorse a set of key principles called the "European Pillar of Social Rights" aimed at providing guidance to countries on how to enhance their social systems.

Non-binding recommendations call for improved access to the labor market, fair working conditions including wages that can provide a "decent standard of living" and social protection such as child care, health care and housing assistance for the homeless.

Juncker said that the main task, after the Summit, will be to ensure that these recommendations have an impact on every State in the European Union.

He also hoped that the Social Pillar won't be just a list of ambitious wishes. He expressed his desire that legislative proposals be launched, noting that "some of them are on the way."



Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

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 announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.