عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Stock Market Sees Banking, Telecom Profits Soar in Q1

An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia January 18, 2016. REUTERS/Faisal Al Nasser
An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia January 18, 2016. REUTERS/Faisal Al Nasser
TT
TT

Saudi Stock Market Sees Banking, Telecom Profits Soar in Q1

An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia January 18, 2016. REUTERS/Faisal Al Nasser
An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia January 18, 2016. REUTERS/Faisal Al Nasser

Saudi Arabia’s stock market led a balanced performance over the last week, maintaining 8500 pts and a market value over two trillion Saudi riyals ($533.3 billion).

According to statistics, last week's close ended with 90 points down, which is considered significantly better when compared with the previous week. The market value stabilized at 2.009 trillion riyals ($ 535.7 billion).

By Thursday's close, the Saudi stock market gained 9% since the start of 2019 with its index currently trading at 870 pts, the highest in nearly four years.

Market gains have been more than 700 points so far, chiefly backed by the banking sector, which experienced overall growth of about 19.5% and the Telecommunications sector, which grew by 15.8%.
It is worth noting that the two sectors have been among the best performing sectors in Q1 2019.

Saudi banks listed on the local stock market posted profits up to 14.1 billion riyals ($ 3.76 billion) in Q1 2019, posting a growth rate of about 12.7 percent when compared to Q1 2018.
Strong growth in the profits of Saudi banks confirms the size and virility of the Kingdom’s financial sector.

Additionally, the Saudi telecom sector recorded remarkable growth in profits during Q 1 2019, which demonstrates the size of the positive impact on the sector companies, in light of the vitality of the economy and growth on the one hand, in addition to the package of actions that have been taken To stimulate the sector on the other.

Positive financial results announced by banks and telecoms come at a time when the Kingdom announced taking its first step into the world’s main equity benchmarks. Joining indices run by FTSE Russell and S&P Dow Jones will increase the Saudi stock market’s attractiveness and nurture a comfortable environment for investors.

Most Viewed

 
 
Business

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)
TT
TT

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.