Three Saudi telecom companies record $800mln profit in Q3

On a quarterly basis, the combined profits jumped by 2.7%

  
Image used for illustrative purpose. A trader monitors stocks at a Saudi Bank in Dammam October 26, 2008.

Image used for illustrative purpose. A trader monitors stocks at a Saudi Bank in Dammam October 26, 2008.

REUTERS/Stringer

Riyadh – Combined profits of Saudi telecom companies listed on the Saudi bourse hiked by 4.46% or SAR 130 million year-on-year (YoY) during the third quarter (Q3) of 2020.

Profits of three Tadawul-listed telecom operators, whose fiscal years end in December every year, netted SAR 3.05 billion in the quarter ended September 2020, compared with SAR 2.92 billion in the year-ago quarter, according to data collected by Mubasher based on the companies’ earnings releases.

Etihad Etisalat Company (Mobily) saw a 335.3% leap in net profits during Q3-20 to SAR 222 million.

In the same vein, Saudi Telecom Company’s (stc) net profits edged up by 0.7% on a YoY basis over the July-September period to SAR 2.8 billion, representing 90.75% of the sector’s quarterly earnings.

Meanwhile, Mobile Telecommunication Company Saudi Arabia (Zain KSA) gained SAR 60 million in net profits during the quarter, posting a 50.4% YoY contraction.

On a quarterly basis, the combined profits jumped by 2.7% or SAR 50 million when compared to SAR 2.97 billion in the second quarter.

Revenues of the three firms rose by 3.27% annually in Q3-20 to SAR 20.16 billion. STC accounted for 73.8% of total quarterly revenue.

The Saudi telecom sector includes the aforementioned three firms, in addition to Etihad Atheeb Telecommunication Company (GO), whose fiscal year ends in March every year.

During the first nine months of the year, the profits of the three companies hit SAR 9.16 billion, up by 3.2% or SAR 283 million yearly, with stc accounting for 91.7% of the sector’s total profits.

In the meantime, combined revenue reached SAR 60.1 billion in the January-September period, an annual growth of 5.1%.

Source: Mubasher

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