Mubasher – Badour Al-Raei: Telecom companies listed on the Saudi Stock Exchange (Tadawul) recorded positive performance in their operating results during the first quarter of 2025, compared to the corresponding quarter of last year, led by the Saudi Telecom Company (STC), which accounted for more than two-thirds of the sector's profits.

Mubasher statistics, based on companies' disclosures on the Tadawul website, revealed a 19% increase in net profits for the first quarter of this year, equivalent to SAR 518 million.

The three companies' total profits reached approximately SAR 4.51 billion by the end of the first quarter of 2025, compared to SAR 3.99 billion in the same quarter last year.

The Saudi telecommunications sector includes three companies whose fiscal year ends at the end of December each year: STC, Mobily, and Zain Saudi Arabia, in addition to Atheeb Telecom, whose fiscal year ends at the end of March.

On a quarterly basis, the sector's companies' profits declined by approximately 28%, with net profits during the last quarter of last year reaching approximately 14.71 billion riyals. STC's profits dominated 91.5% of the total profits, recording a net profit of 13.45 billion riyals in the last quarter of last year.

STC announced at the end of last year that it recorded a net profit from discontinued operations of SAR 13.97 billion, compared to SAR 759 million, primarily resulting from the sale of STC's stake in its subsidiaries (Telecom Towers Company - TAWAL) and Digital Infrastructure Investment Company, for SAR 12.89 billion during 2024.

STC captures 81%

Saudi Telecom Company (STC) held the undisputed lead, accounting for approximately 81% of the sector's total profits in the first quarter of 2025.
Saudi Telecom Company (STC) achieved an 11.05% year-on-year growth in net profits during the first quarter of 2025 .

According to the company's financial data, published on the Tadawul website, net profit reached SAR 3.65 billion, compared to SAR 3.29 billion in the first quarter of 2024.

The company attributed the profit growth to a SAR 302 million increase in revenues and a SAR 133 million decrease in revenue costs, which led to a SAR 435 million increase in gross profit, and a SAR 311 million increase in zakat and income tax, compared to SAR 230 million in zakat and income tax expenses. This was primarily due to the reversal of the zakat provision for previous years, as it no longer served a purpose.

Mobily makes a profit of 767 million riyals

Etihad Etisalat Company (Mobily) came in second place in terms of highest profits during the second quarter of 2025, with a net profit of SAR 767 million, compared to SAR 638 million in the same quarter of last year, an increase of 20.22%.

Mobily stated that net profit after zakat and tax amounted to approximately 767 million riyals, compared to 638 million riyals in the same quarter last year. Its net profit during the last quarter of last year amounted to approximately 979 million riyals.

The company stated that the reason for the increase in net profit is due to several factors, including the growth in revenues, as the gross profit increased by 4.5% to reach 2,554 million Saudi riyals in the first quarter of the fiscal year 2025, compared to 2,445 million Saudi riyals for the same quarter of the previous year, in addition to the increase in profit before depreciation, amortization, Islamic Murabaha costs and Zakat (EBITDA) to reach 1,775 million Saudi riyals during the first quarter of the fiscal year 2025, compared to 1,651 million Saudi riyals for the same quarter of the previous year, an increase of 7.5%, and this increase is due to the growth in the company’s revenues.

Zain Saudi Arabia's profits rise 39%

Finally, Zain Saudi Arabia recorded a 38.80% increase , with net profits reaching approximately 93 million riyals during the first quarter of this year, compared to 67 million riyals in the corresponding quarter of last year.
The company stated that net profit after zakat and tax amounted to approximately 93 million riyals, compared to 67 million riyals in the same quarter last year, while the final net profit for last year amounted to approximately 274 million riyals.
The company attributed the increase in gross profit to several factors, including a SAR 40 million increase in gross profit due to revenue growth, reaching SAR 1.58 billion. Earnings before interest, taxes, depreciation, and amortization also increased by SAR 40 million, a 5.2% increase, to reach SAR 813 million, in addition to a SAR 17 million increase in depreciation and amortization expenses due to the capitalization of the new radio spectrum.