Saudi Telecom Company (stc) announces its interim condensed consolidated financial results for the period ending on 31-3-2025 (Three Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 19,210 | 18,908 | 1.597 | 19,266 | -0.29 |
| Gross Profit (Loss) | 9,098 | 8,664 | 5.009 | 9,416 | -3.377 |
| Operational Profit (Loss) | 3,584 | 3,513 | 2.021 | 2,970 | 20.673 |
| Net profit (Loss) | 3,649 | 3,286 | 11.046 | 13,456 | -72.881 |
| Total Comprehensive Income | 4,371 | 3,370 | 29.703 | 13,160 | -66.785 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Shareholders Equity (after Deducting Minority Equity) | 91,069 | 80,440 | 13.213 |
| Profit (Loss) per Share | 0.73 | 0.66 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | stc achieved revenues of SAR 19,210m in the 1st quarter which was mainly attributed to the increase in business unit revenues by 9.7%, and commercial unit revenues by 1.7%. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | stc achieved net profit of SAR 3,649m in the 1st quarter, which was mainly attributed to the following: -The increase in revenues by SAR 302m, and the decrease in cost of revenues by SAR 133m, which led to an increase in gross profit by SAR 435m. -The booking of zakat and income tax amounting to SAR 311m as compared to zakat and income tax expense amounting to SAR (230m) mainly due to the reversal of zakat provision related to previous years which are no longer required. On the other side: -Operating expenses increased by SAR 364m mainly due to the increase in selling and marketing expenses by SAR 112m, general and administration expenses by SAR 18m, depreciation and amortization expenses by SAR 235m. -The booking of net profit from discontinued operations amounting to SAR 222m in the comparable quarter last year. -Total other expenses increased by SAR 3m, mainly due to: 1.The booking of net other (losses) amounting to SAR (143m) as compared to net other gains amounting to SAR 58m, mainly due to a non-recurring loss of SAR (219m) as a result of the change in the financial instruments following the increase of stc’s ownership in Telefonica from 4.97% to 9.97%, despite the booking of gains amounting to SAR 72m from the revaluation of STV LP fund units. 2.The increase in early retirement program cost by SAR 69m. 3.This is despite of: (a) The booking of net share in results of investments in associates and joint ventures amounting to SAR 61m as compared to SAR (57m). (b) The decrease in net other expenses by SAR 88m. (c) The increase in finance income by SAR 47m. (d) The decrease in finance cost by SAR 15m. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | stc’s revenues reached SAR 19,210m during the current quarter, at a level close to the previous quarter's revenue of SAR 19,266m. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | stc achieved net profit of SAR 3,649m in the 1st quarter which was mainly attributed to the following: -The decrease in revenues by SAR 56m, and the increase in cost of revenues by SAR 262m, which led to the decrease in gross profit by SAR 318m. -The booking of net profit from discontinued operations amounting to SAR 13,174m in the previous quarter, mainly as a result of a gain booked from the sale of stc’s controlling interest in its subsidiaries, Telecommunications Towers Company (TAWAL) and Digital Infrastructure Company amounting to SAR 12,885m. On the other side: -Operating expenses decreased by SAR 931m mainly due to the decrease in selling and marketing expenses by SAR 563m, general and administration expenses by SAR 306m and depreciation and amortization expenses by SAR 63m. -Total other expenses decreased by SAR 1,972m, mainly due to: 1.The decrease in early retirement program cost by SAR 1,612m. 2.The booking of net share in results of investments in associates and joint ventures amounting to SAR 61m as compared to SAR (727m), mainly due to the booking of an impairment provision amounting to SAR 764m related to the investment in BGSM during the previous quarter, as a result of the decline in market conditions of key underlying investment. 3.The increase in finance income by SAR 43m. 4.This is despite of: (a) The booking of net other (losses) amounting to SAR (143m) as compared to net other gains amounting to SAR 292m, mainly due to a non-recurring loss of SAR (219m) as a result of the change in the financial instruments following the increase of stc’s ownership in Telefonica from 4.97% to 9.97%, despite the booking of gains amounting to SAR 72m from the revaluation of STV LP fund units. (b) The increase in net other expenses by SAR 32m. (c) The increase in finance cost by SAR 3m. -The booking of zakat and income tax amounting to SAR 311m as compared to zakat and income tax expense amounting to SAR (507m) mainly due to the reversal of zakat provision related to previous years which are no longer required. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | - |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to conform with the classification used for the period ended 31 March 2025. |
| Additional Information | Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) for the first quarter amounted to SAR 6,120m as compared to SAR 5,815m for the comparable quarter last year, with an increase of 5.2%. The total number of Treasury shares related to the Employees Stock Incentives Plan stood at 13,084,005 shares at the end of Q1 2025, and those shares are not entitled for any dividends distribution. As a result, basic earnings per share (EPS) was calculated based on the weighted average number of ordinary shares in a total of 4,986,916 shares (in thousand) for the 1st quarter of 2025. For more information, please refer to the investor relations press release attached to the announcement. We would like to draw the attention of our esteemed investors that they can access information on stc’s stock performance, dividend distributions, stc’s results and financial statements, and many more features through (stc Investor Relations application). |
| Attached Documents |  |
