Riyadh – Mubasher: Saudi Telecom Company (stc) registered a 5.9% rise in net profit for the first quarter (Q1) of the year.
Net profit after zakat and tax amounted to SAR 2.91 billion during the three-month period ended 31 March 2020, compared with SAR 2.75 billion for the corresponding period last year, as shown by the company’s interim condensed consolidated financial results.
The SAR 163 million increase in net profit was attributed to a growth in revenues by 4% or SAR 549 million that was offset by an increase in revenue cost by SAR 257 million but led to an increase in gross profit by SAR 292 million.
The telecom firm also achieved other income when selling its direct share in Careem after the completion of an acquisition by Uber.
Commenting on the company’s financial results, Nasser bin Sulaiman Al Nasser, GCEO of Saudi Telecom Company (stc), said that it indicated that the company, despite the emerging epidemic conditions of the coronavirus (COVID-19), was able to grow its top line by 4.1%.
An increase in Enterprise Business Unit revenues was supported by innovative products in the field of Internet of Things (IoT), cloud computing, and cybersecurity in addition to other telecom products and services, he added.
Al Nasser further explained that for the consumer business unit, revenue has increased with the support of an increase in fibre-optic subscribers by 23% and data revenue by 15.5%.
Additionally, operating expenses increased by SAR 564 million, mainly due to an increase in selling and marketing expenses by SAR 289 million and the booking of an impairment loss on trade receivables.
Earnings before depreciation, amortization, interest, zakat and taxes (EBITDA) decreased by 1.04% during Q1-20 to SAR 5.33 billion, compared with SAR 5.386 billion for the same quarter last year.
stc also announced the distribution of SAR 2 billion in interim dividends for the first quarter (Q1) of 2020, at SAR 1 per share, representing 10% of the share’s par value.
The eligibility of dividends will be for shareholders at the close of trading on Tuesday 28 April and as per the registered shareholders in the register of the Securities Depository Center Company (Edaa) at the end of the second trading day following the eligibility date.
The distribution by Banque Saudi Fransi will be through direct bank transfer to the shareholders' bank accounts linked to their portfolios.
