Saudi telecom companies earn 11.2 billion riyals in 2019

The telecom companies listed in the Saudi stock market achieved a net profit of 11.21 billion riyals during 2019, compared to 10.94 billion riyals for the past year 2018, a growth of 2.4%. < / p>

According to ArabiaNet, the achievement of net profit during the year was due to the significant growth in net profit of Zain Saudi Arabia, as well as the achievement of Etihad Mobily Company net profit compared to net loss, while the net profit of the telecommunications company decreased slightly.

The sector recorded the lowest annual growth in four years, despite the marked growth in the sector's revenues, but it was affected by the financing expenses of some companies and the application of some international financial reporting standards, in addition to the high operating expenses of Saudi Telecom Company by an amount close to one billion riyals as a result of its investment in the infrastructure technology Fifth, fiber optics, and the launch of the company's new commercial feature, according to Al-Eqtisadiah.

Revenue for the sector during the year was about 76.47 billion riyals, compared to about 71.68 billion riyals, with a growth of about 6.7%, which is the highest revenue growth in the last five years, knowing that the report includes all telecom companies, including Atheeb, which includes its nine-month period, ending in December 2019.

Saudi Telecom Company acquired 71.1% of the total revenues by about 54.37 billion riyals, compared to a market share of 72.5%, while Mobily's market share increased to 17.6% compared to about 16% for the previous year, to reach 13.45 billion riyals in growth for the second year in a row.

While the market share of Zain increased to 11% compared to 10.5%, to reach revenues of about 8.39 billion riyals, a growth for the third year in a row.

On a quarterly basis, telecom companies achieved a net profit of 2.39 billion riyals during the fourth quarter of 2019, compared to a net profit during the corresponding period of 2018 of 2.63 billion riyals, to record a quarterly profit of 9%. The fourth quarter performance does not include Atheeb due to its different financial year.

The performance of the last quarter of Saudi Telecom and Mobily was affected, as the net profit for the first declined 22.4% to 2.41 billion riyals, compared to about 3.1 billion riyals, while Mobily's losses during the period rose 56% to 125 million riyals, compared to a net loss of 80 million riyals, while Zain achieved Net profit compared to net loss for the same period in 2018.

The performance of the telecom sector’s shares has declined since the beginning of the year, as the sector lost 12% of its market value to 199.23 billion riyals, while the sector is trading at the lowest level in 13 months.