stc net profit rises 11% to SAR 3.64B in Q1 2025

Saudi telecom major stc reported a net profit of SAR 3.64 billion in Q1 2025, an increase of 11% from SAR 3.28 billion in the year-earlier period.

This profit growth was driven by the SAR 302 million hike in the first-quarter revenues, while the cost of revenues decreased by SAR 133 million for the same period. Consequently, this led to a SAR 435 million rise in the three-month gross profit.

Additionally, the company recorded Zakat and income tax of SAR 311 million in Q1 2025, compared to expenses of SAR (230) million in the year-ago period. This was mainly due to the reversal of Zakat provisions set for prior years for no longer being required.

For the same quarter, stc recorded a net share of income from associate companies and joint ventures of SAR 61 million.

Meanwhile, the annual profit growth was capped by the SAR 364 million uptick in operating expenses (opex). This was primarily due to the SAR 112 million hike in selling & marketing expenses for Q1 2025, with general & administrative and depreciation & amortization expenses also up by SAR 18 million and SAR 235 million, respectively.

On a sequential basis, however, stc’s net profit declined 72.9% from SAR 13.45 billion in Q4 2024. This came as the three-month topline plunged by SAR 56 million quarter-on-quarer (QoQ), resulting in a SAR 318 million quarterly pullback in gross profit, although the company curtailed its opex by SAR 931 million on a QoQ basis.

Total shareholders’ equity, excluding minority interest, stood at SAR 91.06 billion by the end of the period, compared to SAR 80.44 billion a year earlier.

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