Saudi Telecom Company (7010) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 4.79% year-over-year to SAR 38.25 billion, with Q2 revenue at SAR 19.16 billion, reflecting record highs and strong growth in commercial, mobility, and residential segments.

• Net profit for H1 2024 increased 7.73% to SAR 6.72 billion, with Q2 net profit at SAR 3.39 billion, driven by operational efficiency and cost control.

• Maintained leadership in ICT, consumer, and enterprise segments in Saudi Arabia, with continued expansion of digital offerings and subscriber base.

• stc continues to invest in digital infrastructure, strategic partnerships, and digital banking, supporting Vision 2030.

• Total comprehensive income for H1 2024 was SAR 6.52 billion.

Financial highlights

• Gross profit for Q2 2024 was SAR 9.57 billion, with H1 2024 gross profit at SAR 18.96 billion and a Q2 gross margin of 49.97%.

• EBITDA for H1 2024 rose 5.96% to SAR 12.89 billion, with a Q2 margin improvement to 33.49%.

• Cash and equivalents stood at SAR 26.4 billion, with net cash of SAR 2.55 billion; total assets reached SAR 160.04 billion.

• Dividend payout ratio for Q2 was 60.6%, with a yield of 4.2% and a fixed quarterly dividend of SAR 0.4 per share.

• Free cash flow surged 116.51% to SAR 3,442 million; net cash from operating activities up 49.76% to SAR 7,660 million.

Outlook and guidance

• Strategic focus on digital transformation, cost optimization, and expanding digital services and partnerships.

• Continued investment in 5G, fiber, digital banking, and cloud computing, with stc Bank beta launch and further expansion planned.

• Minimum quarterly dividend of SAR 0.40 per share, with potential for additional dividends based on performance.