STC’s profits to 3.6 billion riyals in the first quarter of 2025

The profits of the Saudi Telecom Company (ETC) increased in the first quarter of 2025 by 11% to 3.6 billion riyals, compared to 3.3 billion riyals in the same quarter of last year.
According to the company’s statement on Saudi Arabia’s circulation, this is due to:
-The increase in revenues by 302 million riyals, and the decrease in the costs of revenues at the amount of 133 million riyals, which led to a high total profit by 435 million riyals.
-Zakat and income tax in the amount of 311 million riyals compared to the expenses of Zakat and income tax in the amount of (230) million riyals, and this is mainly due to the unlike the zakat allowance for previous years because of the absence of its purpose.
On the other hand:
-The operational expenses increased by 364 million riyals, due mainly to the high sales and marketing expenses at an amount of 112 million riyals, public and administrative expenses at the amount of 18 million riyals, and the expenses of consumption and firefighting at the amount of 235 million riyals.
-The net profit of unprecedented operations is registered in the amount of 222 million riyals in the same quarter of the previous year.
The total expenses increased by 3 million riyals, and this is mainly due to:
1. Other net registration (losses) in the amount of (143) million riyals compared to net other gains in the amount of 58 million riyals, due mainly due to non -repeated losses in the amount of (219) million riyals as a result of a change in financial tools after raising the ownership of the STC in Televinal from 4.97% to 9.97%, despite the registration of gains from the re -evaluation of the STV in the bold capital of 72 million riyals.
2. The increase in the cost of the early retirement program at 69 million riyals.
3. This is despite: (a) registration of the net share in the results of investments in colleague companies and joint projects in the amount of 61 million riyals compared to (57) million riyals. (B) A decrease in net expenses of 88 million riyals. (C) The increase in financing revenues at 47 million riyals. (D) The decrease in financing costs of 15 million riyals.
STC made a net profit of 3,649 million riyals during the first quarter, compared to the fourth quarter, and this is mainly due to the following reasons:
-The revenue decreased by 56 million riyals and the increase in the costs of revenues at an amount of 262 million riyals, which led to a decrease in the total profit by 318 million riyals.
-The net profit of the unprecedented operations is registered in the amount of 13,174 million riyals in the previous quarter, mainly from registering the STC sale gains for a controlling share in its subsidiary companies, the Towers Company (Tawal), and the Digital Investment Company in the amount of 12,885 million riyals.
On the other hand:
-The operational expenses decreased by 931 million riyals, due mainly to the decrease in sales and marketing expenses at an amount of 563 million riyals, public and administrative expenses at 306 million riyals, consumption and firefighting expenses at 63 million riyals.
The total expenses decreased by 1,972 million riyals, mainly due to:
1. The cost of the early retirement program decreased by 1,612 million riyals.
2. The net share in the results of investments in colleague companies and joint projects is registered in the amount of 61 million riyals compared to (727) million riyals, and this is mainly due to a dedicated registration for a decrease in value in the amount of 764 million riyals with regard to investment in the Beniarung GSM Holding Group during the previous quarter, as a result of changing the state of the markets for basic investment.
3. The increase in financing revenues at 43 million riyals.
4. This is despite: (a) other net registration (losses) in the amount of (143) million riyals compared to net other gains in the amount of 292 million riyals, and this is mainly due to unspecified losses in the amount of (219) million riyals as a result of a change in financial tools after raising the STC in Televonica from 4.97% to 9.97%, despite the registration of gains from the re -evaluation of the STV Fund units for the bold capital of the amount 72 million riyals. (B) The increase in net expenses of 32 million riyals. (C) The increase in financing costs of 3 million riyals.
-Zakat and income tax were registered with an amount of 311 million riyals compared to the expenses of Zakat and income tax in the amount of (507) million riyals, and this is mainly due to the unlike the zakat allowance for previous years because of the absence of its purpose.