The financial results of the Saudi Telecom Company, STC, revealed that it achieved an increase in its net profits during the first quarter of 2023 by 2.44%, on an annual basis, and its net profits increased on a quarterly basis by 12.77%.
According to the company's preliminary financial statements, today, Wednesday, on Tadawul Saudi Arabia, the net profit amounted to about 3.11 billion riyals, compared to 3.03 billion riyals in the comparative quarter of last year.
The company said that the reason for the increase in net profit is due to the increase in revenues by 1.26 billion riyals, which was offset by an increase in revenue costs by 1.056 billion riyals. This led to an increase in total profit by SAR 204 million, in addition to a decrease in total other expenses by SAR 186 million.
The company's sales increased by 7.45%, to reach 18.18 billion riyals, compared to 17 billion riyals for the comparative quarter of last year.
The company added that the increase in revenues is due to the increase in financing revenues by 250 million riyals, and the recording of the net share in the results and the impairment in the value of investments in associate companies and joint ventures by 13 million riyals compared to the amount of 229 million riyals, mainly resulting from recording a provision for impairment in value against investment. In the Binaryang GSM Holding Group, in the same quarter of the previous year, in the amount of 239 million riyals, and recording net other revenues in the amount of 31 million Saudi riyals, compared to net other (expenses) in the amount of 58 million riyals, despite the increase in the cost of the early retirement program by an amount 187 million riyals. And an increase in financing costs by 86 million Saudi riyals, (c) recording other net (losses) of 118 million riyals compared to other net gains of 4 million Saudi riyals.
On the other hand, operating expenses increased by 297 million Saudi riyals, mainly due to the company's strategic investments aimed at growth and expansion in new business areas. This led to an increase in general and administrative expenses by SAR 244 million, and depreciation and amortization expenses by SAR 137 million, which was offset by a decrease in selling and marketing expenses by SAR 83 million.
