Mobile Telecommunications Company Saudi Arabia (7030) Q2 2024 earnings summary

Executive summary

• Achieved 6% year-over-year revenue growth in H1 2024, reaching 5.09 billion SAR, with net profit at 171.7 million SAR, a decrease from 1.25 billion SAR last year due to a one-time gain on tower sale in 2023.

• Invested SAR 1.6 billion in 5G network expansion, achieving full 5G coverage of the Holy Sites and significant B2B growth.

• Recognized for sustainability and workplace excellence, including the Ghazi Al Gosaibi Award for Best Work Environment for Women.

• Dividend of SR 0.5 per share (totaling SR 449.4 million) was approved and distributed in July 2024.

Financial highlights

• Q2 2024 revenue reached 2,552 million SAR, up 7% year-over-year; gross profit at 1,545 million SAR, gross margin 61%.

• EBITDA for Q2 2024 was 772 million SAR, EBITDA margin 30%; operational income at 242 million SAR.

• Net profit for Q2 2024 was 67 million SAR, profit margin 3%.

• Cash balance at Q2 2024 stood at 1,103 million SAR, up 152% year-over-year; cash and cash equivalents at period end were SR 615 million, down from SR 945 million at year-end 2023.

• CAPEX for Q2 2024 was 68 million SAR, with CAPEX/revenue ratio at 3%.

Outlook and guidance

• Continued focus on 5G expansion and digital transformation, with increased CAPEX guidance and cost efficiency measures.

• Management expects to meet obligations in the normal course of operations, supported by an unutilized SR 940 million syndicated Murabaha facility.

• Committed to empowering the enterprise sector and supporting Saudi Vision 2030 initiatives.

• No material subsequent events after the reporting date.