Saudi Telecom Company (7010) Q2 2024 earnings summary

Executive summary

• Revenues for H1 2024 reached SAR 38.25 billion, up 4.79% year-over-year, driven by growth in commercial, mobility, and residential segments, and strong subsidiary performance.

• Net profit for H1 2024 was SAR 6.72 billion, up 7.73% year-over-year, with EBITDA at SAR 12.89 billion.

• Operational efficiency and cost control initiatives improved profit margins and strengthened the financial position.

• The company continues to invest in digital infrastructure and strategic partnerships, supporting Vision 2030 and digital transformation.

• Total comprehensive income for H1 2024 was SAR 6.52 billion, compared to SAR 6.02 billion in H1 2023.

Financial highlights

• Gross profit for H1 2024 was SAR 18.96 billion, up from SAR 18.25 billion year-over-year.

• Free cash flow surged 116.51% to SAR 3.44 billion; net cash from operating activities was SAR 7.66 billion.

• Total assets as of 30 June 2024 were SAR 160.04 billion; total equity was SAR 78.95 billion.

• Total debt increased 122.63% year-over-year to SAR 23.85 billion.

• Basic and diluted EPS for H1 2024 were SAR 1.32, compared to SAR 1.23 and SAR 1.22, respectively, in H1 2023.

Outlook and guidance

• The company maintains a minimum quarterly dividend of SAR 0.40 per share, with potential for additional dividends based on performance and board recommendation.

• Focus remains on digital infrastructure investment, cost efficiency, and supporting national strategic projects.

• Additional dividends are subject to financial position, outlook, and capital expenditure requirements.

• Continued expansion in digital services, cloud computing, and e-sports partnerships to drive future growth.