- Saudi Telecom’s second quarter profit rose to 3.82 billion riyals, exceeding estimates of 3.46 billion riyals, marking a 16% increase year-over-year.
- Revenue for the same period reached 19.45 billion riyals, up 2.6% from the previous year, although slightly below the estimated 19.82 billion riyals.
- Operating profit was reported at 3.62 billion riyals, a 2.6% increase year-over-year, but under the expected 3.69 billion riyals.
- The company declared a dividend of 0.55 riyals per share.
- Revenue from the commercial unit saw a year-over-year rise of 3.9% in the second quarter.
- Carrier and wholesale unit revenues increased by 2.7% year-over-year in the second quarter.
- The cost of revenue dropped by 235 million riyals compared to the previous year.
- EBITDA for the second quarter grew by 7% year-over-year, totaling 6.17 billion riyals.
- Analyst recommendations include 8 buy ratings and 9 hold ratings, with no sell ratings.
A look at Saudi Telecom Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
With a solid overall outlook based on the Smartkarma Smart Scores, Saudi Telecom Company is positioned for long-term success in the telecommunications sector. Scoring high in Value, Dividend, Resilience, and Momentum, the company demonstrates strength across key factors essential for sustainable growth. This suggests that Saudi Telecom offers investors a combination of attractive valuation, consistent dividend payouts, resilience in challenging market conditions, and positive momentum in its operations.
Saudi Telecom Company, a provider of telecommunications services including fixed-line, mobile, and internet services, is well-positioned for continued growth supported by its strong performance across key metrics. While scoring slightly lower in Growth compared to other factors, the company’s overall outlook remains favorable, driven by its robust fundamental strategies. Investors looking for a reliable player in the telecommunications industry may find Saudi Telecom an appealing choice given its high scores in key areas crucial for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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