stc Q1 2023 profit up 2% to SAR 3.10 bln

stc, the fifth largest company listed on Tadawul, reported a net profit rise of 2% to SAR 3.10 billion for the first quarter of 2023, compared to SAR 3.03 billion in the year-earlier period.

The telecom operator reported a revenue rise of SAR 1.26 billion year-on-year (YoY), which pushed gross profit higher by SAR 204 million. However, this was offset by an increase of SAR 1.05 billion YoY in the cost of revenue.

Total other expenses declined by SAR 186 million YoY, mainly due to an increase in finance income by SAR 250 million.

On the other hand, operating expenses (OpEx) increased by SAR 297 million YoY. stc also reported a SAR 187 million YoY rise in the cost of its early retirement program, along with higher Zakat and income tax costs.

The first-quarter net profit jumped 12.8% from SAR 2.75 billion in Q4 2022, thanks to an increase of SAR 1.14 billion in revenue. OpEx dropped by SAR 437 million YoY.

Total shareholders’ equity, after minority interest, reached SAR 74.63 billion as of March 31, 2023, compared to SAR 70.36 billion a year earlier.

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