Saudi Arabia’s listed telecom companies experienced a significant 69% increase in net profits for 2024, reaching SAR 28.39 billion ($7.57 billion) compared to SAR 16.79 billion ($4.5 billion) in 2023. This growth was attributed to higher revenues, an expanding customer base, and improved operational efficiency across the sector.
The telecom sector consists of four companies: stc (Saudi Telecom Company), Mobily (Etihad Etisalat), Zain Saudi Arabia, and GO (Etihad Atheeb Telecom). Stc led the sector, accounting for 87% of the total profits, with its net profit soaring 85.7% to SAR 24.7 billion from SAR 13.3 billion in 2023. Stc attributed its growth to higher revenues and gains from discontinued operations, along with successful diversification into sectors like finance, IoT, entertainment, and IT outsourcing.
Mobily followed with a net profit of SAR 3.11 billion, reflecting a 39.2% increase from SAR 2.23 billion in 2023. The company credited this growth to higher revenues, an expanding customer base, and improved operational efficiency.
On the other hand, Zain Saudi Arabia saw a 52.96% decline in net profit, dropping to SAR 596 million from SAR 1.27 billion in 2023. This decrease was attributed to higher operational expenses and provisions for credit losses. Despite this decline, Zain met all of its financial obligations for the year, amounting to SAR 1.8 billion.
Analysts see strong growth potential in the Saudi telecom sector, with stc’s impressive performance and strategies like diversification into various industries. Experts suggest that Zain needs to reassess its operational strategies to address rising costs and credit losses but highlighted its positive financial management in meeting its obligations.
Telecom, Saudi Arabia, Profit Growth
