stc H1 2024 profits up 8% to SAR 6.59B; Q2 at SAR 3.3B

Telecom giant stc posted SAR 6.59 billion in net profit for the first half of 2024, an increase of 8% year-on-year (YoY) from SAR 6.11 billion.

Revenues grew by SAR 1.74 billion in H1 2024, offset by higher cost of revenue by SAR 1.04 billion, leading to an increase in gross profit by SAR 708 million.

The telco also posted a decrease in operating expenses by SAR 21 million, as well as a fall in Zakat and income tax expense by SAR 154 million.

Meanwhile, total other expenses rose by SAR 348 million, mainly due to higher finance cost, cost of early retirement program, and net other expenses, as well as a decline in net share in results of investments in associates and joint ventures.

However, finance income grew by SAR 136 million and the booking of net other gains at SAR 60 million compared to net other losses of SAR 30 million a year earlier.

The second-quarter net profit grew 10% to SAR 3.3 billion, from SAR 3 billion in Q2 2023, spurred by higher revenues along with lower operating expenses as well as tax and Zakat charges.

Sequentially, stc reported 0.6% profit growth from SAR 3.28 billion in Q1 2024.

Total shareholders’ equity, after minority interest, reached SAR 76.40 billion as of June 30, 2024, up from SAR 75.49 billion a year earlier.

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