Saudi Telecom net profit rises marginally to SAR 8.4 bln in 9M 2020

Saudi Telecom net profit rises marginally to SAR 8.4 bln in 9M 2020

21/10/2020 Argaam Exclusive

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Saudi Telecom Co. (STC) reported an interim net profit after Zakat and tax of SAR 8.4 billion for the first nine months of 2020, a marginal increase of 0.7% year-on-year (YoY), driven by growth in consolidated gross profit due to higher revenue.

 

However, operating expenses jumped due to a rise in selling and marketing expenses from an increase in doubtful debt provision in the current period. In addition, the company reported higher depreciation, amortization, and general and administration expenses.



Financials (M)

Item 9m 2019 9m 2020 Change‬
Revenues 41,102.94 43,736.51 6.4 %
Gross Income 24,031.58 25,507.83 6.1 %
Operating Income 10,080.57 9,525.80 (5.5 %)
Net Income 8,343.95 8,402.50 0.7 %
Average Shares 5,000.00 5,000.00 -
EPS (Riyals) 1.67 1.68 0.7 %

The telco’s net profit after Zakat and tax for Q3 2020 rose 0.7% YoY to SAR 2.76 billion, as consolidated gross profit rose on the back of higher revenues.

 

On a sequential basis, Q3 2020 net profit rose by 1.5%.



Current Quarter Comparison (M)

Compared With The
Item Q3 2019 Q3 2020 Change‬
Revenues 14,113.63 14,881.43 5.4 %
Gross Income 7,920.82 8,970.96 13.3 %
Operating Income 3,328.05 3,459.60 4.0 %
Net Income 2,746.20 2,765.54 0.7 %
Average Shares 5,000.00 5,000.00 -
EPS (Riyals) 0.55 0.55 0.7 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2011 13,076.30 4.4 % 7,488.43 4.6 % 1,573.12 (11.2 %) 0.31
Q2 2011 13,879.67 10.2 % 7,951.89 8.4 % 2,256.37 9.4 % 0.45
Q3 2011 14,015.11 5.9 % 8,073.04 2.4 % 1,562.48 (52.9 %) 0.31
Q4 2011 14,691.00 9.3 % 7,814.90 (1.6 %) 2,336.69 2.2 % 0.47
Q1 2012 11,067.36 (15.4 %) 6,329.04 (15.5 %) 2,521.16 60.3 % 0.50
Q2 2012 11,013.03 (20.7 %) 6,352.24 (20.1 %) 2,407.57 6.7 % 0.48
Q3 2012 11,429.91 (18.4 %) 6,459.29 (20.0 %) 1,953.80 25.0 % 0.39
Q4 2012 11,234.77 (23.5 %) 6,121.14 (21.7 %) 393.44 (83.2 %) 0.08
Q1 2013 11,473.88 3.7 % 6,494.46 2.6 % 1,549.96 (38.5 %) 0.31
Q2 2013 11,433.47 3.8 % 6,733.78 6.0 % 1,428.95 (40.6 %) 0.29
Q3 2013 11,426.85 0.0 % 7,193.36 11.4 % 3,385.59 73.3 % 0.68
Q4 2013 11,270.43 0.3 % 6,991.64 14.2 % 3,532.57 797.9 % 0.71
Q1 2014 10,782.89 (6.0 %) 6,211.34 (4.4 %) 2,390.94 54.3 % 0.48
Q2 2014 11,722.00 2.5 % 7,023.53 4.3 % 2,803.35 96.2 % 0.56
Q3 2014 11,754.61 2.9 % 7,620.88 5.9 % 3,371.75 (0.4 %) 0.67
Q4 2014 11,848.40 5.1 % 7,300.50 4.4 % 2,442.39 (30.9 %) 0.49
Q1 2015 12,473.48 15.7 % 7,543.92 21.5 % 2,503.58 4.7 % 0.50
Q2 2015 12,222.15 4.3 % 7,164.16 2.0 % 2,558.33 (8.7 %) 0.51
Q3 2015 12,894.71 9.7 % 7,624.10 0.0 % 2,322.15 (31.1 %) 0.46
Q4 2015 13,246.19 11.8 % 8,010.86 9.7 % 1,950.49 (20.1 %) 0.39
Q1 2016 13,228.62 6.1 % 7,076.10 (6.2 %) 2,396.58 (4.3 %) 0.48
Q2 2016 13,412.97 9.7 % 7,470.82 4.3 % 2,202.19 (13.9 %) 0.44
Q3 2016 14,025.79 8.8 % 7,117.39 (6.6 %) 2,216.94 (4.5 %) 0.44
Q4 2016 13,010.95 (1.8 %) 7,023.48 (12.3 %) 2,083.16 6.8 % 0.42
Q1 2017 12,524.11 (5.3 %) 6,923.88 (2.2 %) 2,534.75 5.8 % 0.51
Q2 2017 13,041.18 (2.8 %) 6,911.04 (7.5 %) 2,356.48 7.0 % 0.47
Q3 2017 12,621.35 (10.0 %) 7,400.59 4.0 % 2,569.37 15.9 % 0.51
Q4 2017 12,502.72 (3.9 %) 7,347.91 4.6 % 2,554.98 22.6 % 0.51
Q1 2018 12,349.08 (1.4 %) 6,934.85 0.2 % 2,587.53 2.1 % 0.52
Q2 2018 13,079.39 0.3 % 7,167.18 3.7 % 2,444.05 3.7 % 0.49
Q3 2018 13,319.89 5.5 % 7,850.74 6.1 % 2,642.62 2.9 % 0.53
Q4 2018 13,214.89 5.7 % 8,520.31 16.0 % 3,105.58 21.5 % 0.62
Q1 2019 13,385.75 8.4 % 7,903.48 14.0 % 2,749.74 6.3 % 0.55
Q2 2019 13,603.56 4.0 % 8,207.29 14.5 % 2,848.02 16.5 % 0.57
Q3 2019 14,113.63 6.0 % 7,920.82 0.9 % 2,746.20 3.9 % 0.55
Q4 2019 13,264.59 0.4 % 8,359.64 (1.9 %) 2,320.71 (25.3 %) 0.46
Q1 2020 13,934.85 4.1 % 8,195.88 3.7 % 2,912.75 5.9 % 0.58
Q2 2020 14,920.23 9.7 % 8,340.99 1.6 % 2,724.22 (4.3 %) 0.54
Q3 2020 14,881.43 5.4 % 8,970.96 13.3 % 2,765.54 0.7 % 0.55

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2011 58.56 % 38.16 % 14.11 %
Q2 2011 58.30 % 38.33 % 14.10 %
Q3 2011 57.81 % 37.38 % 12.29 %
Q4 2011 56.28 % 35.98 % 12.71 %
Q1 2012 56.23 % 36.23 % 15.29 %
Q2 2012 56.25 % 36.51 % 16.45 %
Q3 2012 55.92 % 36.12 % 18.33 %
Q4 2012 56.46 % 36.37 % 16.78 %
Q1 2013 56.32 % 36.28 % 14.97 %
Q2 2013 56.63 % 37.08 % 15.19 %
Q3 2013 58.25 % 39.08 % 18.18 %
Q4 2013 60.11 % 40.50 % 23.56 %
Q1 2014 60.41 % 41.03 % 25.29 %
Q2 2014 60.66 % 40.71 % 25.74 %
Q3 2014 61.16 % 41.37 % 25.61 %
Q4 2014 61.07 % 41.16 % 23.64 %
Q1 2015 61.69 % 41.53 % 23.13 %
Q2 2015 61.35 % 41.33 % 22.39 %
Q3 2015 59.94 % 39.46 % 19.94 %
Q4 2015 59.69 % 38.10 % 18.54 %
Q1 2016 57.91 % 36.88 % 18.13 %
Q2 2016 57.18 % 36.19 % 16.93 %
Q3 2016 55.04 % 34.38 % 16.29 %
Q4 2016 53.44 % 33.59 % 16.60 %
Q1 2017 53.87 % 33.53 % 16.93 %
Q2 2017 53.18 % 32.69 % 17.35 %
Q3 2017 55.20 % 34.28 % 18.44 %
Q4 2017 56.39 % 37.24 % 19.76 %
Q1 2018 56.61 % 37.32 % 19.93 %
Q2 2018 57.07 % 38.25 % 20.09 %
Q3 2018 57.17 % 38.48 % 19.96 %
Q4 2018 58.64 % 38.17 % 19.95 %
Q1 2019 59.32 % 39.05 % 19.87 %
Q2 2019 60.69 % 40.28 % 20.43 %
Q3 2019 59.93 % 39.89 % 20.32 %
Q4 2019 59.58 % 39.11 % 19.09 %
Q1 2020 59.51 % 38.62 % 18.29 %
Q2 2020 58.36 % 37.16 % 17.37 %
Q3 2020 59.42 % 37.62 % 17.17 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2011 5,000.00 1.85 1.48 9.05
Q2 2011 5,000.00 1.89 1.51 9.26
Q3 2011 5,000.00 1.54 1.34 9.15
Q4 2011 5,000.00 1.55 1.42 9.38
Q1 2012 5,000.00 1.74 1.64 9.81
Q2 2012 5,000.00 1.77 1.67 10.03
Q3 2012 5,000.00 1.84 1.77 10.34
Q4 2012 5,000.00 1.46 1.50 10.27
Q1 2013 5,000.00 1.26 1.35 10.34
Q2 2013 5,000.00 1.07 1.38 10.39
Q3 2013 5,000.00 1.35 1.66 10.81
Q4 2013 5,000.00 1.98 2.15 11.25
Q1 2014 5,000.00 2.15 2.27 11.40
Q2 2014 5,000.00 2.42 2.33 11.74
Q3 2014 5,000.00 2.42 2.33 12.04
Q4 2014 5,000.00 2.20 2.18 12.08
Q1 2015 5,000.00 2.22 2.21 12.06
Q2 2015 5,000.00 2.18 2.16 12.13
Q3 2015 5,000.00 1.97 1.97 12.07
Q4 2015 5,000.00 1.87 1.89 12.11
Q1 2016 5,000.00 1.85 1.87 11.94
Q2 2016 5,000.00 1.77 1.79 11.88
Q3 2016 5,000.00 1.75 1.76 11.90
Q4 2016 5,000.00 1.78 1.78 11.99
Q1 2017 5,000.00 1.81 1.79 12.11
Q2 2017 5,000.00 1.84 1.83 12.21
Q3 2017 5,000.00 1.91 1.89 12.33
Q4 2017 5,000.00 2.00 2.00 12.57
Q1 2018 5,000.00 2.01 2.01 12.69
Q2 2018 5,000.00 2.03 2.03 12.76
Q3 2018 5,000.00 2.05 2.05 12.87
Q4 2018 5,000.00 2.16 2.07 13.10
Q1 2019 5,000.00 2.19 2.11 13.67
Q2 2019 5,000.00 2.27 2.19 12.51
Q3 2019 5,000.00 2.29 2.21 12.24
Q4 2019 5,000.00 2.13 2.08 12.35
Q1 2020 5,000.00 2.17 2.01 12.57
Q2 2020 5,000.00 2.14 1.95 12.58
Q3 2020 5,000.00 2.14 1.96 12.73

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2011 8.34 10.43 1.70
Q2 2011 7.72 9.63 1.57
Q3 2011 8.86 10.17 1.49
Q4 2011 8.75 9.55 1.44
Q1 2012 9.40 9.95 1.66
Q2 2012 8.95 9.46 1.57
Q3 2012 8.61 8.99 1.54
Q4 2012 11.90 11.53 1.69
Q1 2013 12.44 11.60 1.52
Q2 2013 14.98 11.53 1.54
Q3 2013 12.78 10.43 1.60
Q4 2013 10.81 9.96 1.90
Q1 2014 12.29 11.62 2.32
Q2 2014 11.02 11.47 2.27
Q3 2014 12.29 12.76 2.47
Q4 2014 11.94 12.06 2.18
Q1 2015 11.29 11.35 2.08
Q2 2015 12.41 12.48 2.23
Q3 2015 12.47 12.43 2.03
Q4 2015 14.66 14.52 2.26
Q1 2016 13.92 13.74 2.15
Q2 2016 14.52 14.41 2.17
Q3 2016 12.69 12.67 1.87
Q4 2016 16.31 16.29 2.42
Q1 2017 14.80 14.91 2.21
Q2 2017 16.76 16.88 2.52
Q3 2017 14.83 14.99 2.30
Q4 2017 13.70 13.70 2.18
Q1 2018 16.46 16.46 2.61
Q2 2018 17.66 17.66 2.81
Q3 2018 16.72 16.72 2.66
Q4 2018 17.03 17.71 2.80
Q1 2019 19.67 20.43 3.15
Q2 2019 18.30 18.98 3.32
Q3 2019 19.01 19.71 3.55
Q4 2019 19.09 19.62 3.30
Q1 2020 16.16 17.42 2.78
Q2 2020 18.50 20.27 3.15
Q3 2020 18.73 20.52 3.15

Business Segments (Million)

Compared With The
Period STC (Saudi arabia) STC channels Company Other operating segments Consolidation adjustments & eliminations GSM Landline DATA Un-allocated
Q1 2011 - - - - 8,612.49 2,145.44 2,210.45 107.93
Q2 2011 - - - - 9,300.53 2,165.08 2,279.18 134.88
Q3 2011 - - - - 9,535.33 1,968.75 2,358.25 152.78
Q4 2011 - - - - 10,460.75 2,030.05 2,539.65 (339.46)
Q1 2012 - - - - 7,231.45 3,163.66 775.96 (103.71)
Q2 2012 - - - - 5,953.44 2,773.26 2,747.33 (461.00)
Q3 2012 - - - - 6,321.44 3,061.54 2,038.38 8.55
Q4 2012 - - - - 6,534.06 3,295.52 1,450.81 (45.62)
Q1 2013 - - - - 5,912.96 3,401.35 2,121.21 38.36
Q2 2013 - - - - 6,276.02 3,413.90 1,645.45 98.11
Q3 2013 - - - - 5,947.77 3,195.58 2,156.72 126.77
Q4 2013 - - - - 6,048.69 3,174.74 2,296.23 (249.24)
Q1 2014 - - - - 6,038.19 3,013.96 1,728.00 2.75
Q2 2014 - - - - 6,352.36 3,157.29 2,215.10 (2.75)
Q3 2014 - - - - 6,159.92 2,950.32 2,639.42 4.95
Q4 2014 - - - - 6,070.61 3,035.10 2,471.11 (10.68)
Q1 2015 - - - - 8,440.66 3,066.91 967.15 (1.23)
Q2 2015 - - - - 7,996.74 3,171.23 1,057.86 (3.68)
Q3 2015 - - - - 8,401.59 2,981.61 1,511.66 (0.15)
Q4 2015 - - - - 8,640.52 3,050.16 1,273.82 95.77
Q1 2016 11,140.70 864.25 1,976.63 (752.96) - - - -
Q2 2016 11,759.92 814.10 2,092.28 (1253.32) - - - -
Q3 2016 11,578.66 694.60 2,148.24 (395.70) - - - -
Q4 2016 11,718.75 655.71 1,988.92 (2357.10) - - - -
Q1 2017 10,797.74 666.17 1,613.10 (552.90) - - - -
Q2 2017 11,131.56 742.11 2,239.26 (1071.76) - - - -
Q3 2017 9,839.32 467.79 2,071.73 242.50 - - - -
Q4 2017 9,676.60 1,179.03 2,425.11 (806.03) - - - -
Q1 2018 9,698.95 1,252.37 2,042.44 (644.69) - - - -
Q2 2018 9,897.49 1,647.03 2,430.66 (895.78) - - - -
Q3 2018 10,197.06 1,110.89 2,416.37 (404.43) - - - -
Q4 2018 9,562.79 12,872.44 2,613.09 (11833.44) - - - -
Q1 2019 9,512.20 2,322.58 2,531.06 (980.09) - - - -
Q2 2019 10,340.08 6,278.51 3,051.22 (6066.25) - - - -
Q3 2019 10,294.47 4,341.27 3,354.69 (3876.80) - - - -
Q4 2019 10,112.36 4,467.44 3,691.23 (5006.43) - - - -
Q1 2020 10,333.04 4,295.21 3,610.19 (4303.59) - - - -
Q2 2020 10,283.06 4,966.19 3,779.31 (4108.33) - - - -
Q3 2020 11,041.84 3,706.50 4,215.33 (4082.24) - - - -

Analysts Estimates (Million)

Item Q3 2020 (e) Q3 2020 (a) Change‬
Average 2,670.34 2,765.54 3.56 %

Estimates vs Actual (Million)

Item Q3 2020 (e) Q3 2020 (a) Change
AlJazira Capital 2,768.70 2,765.54 (0.1) %
Riyad Capital 2,706.00 2,765.54 2.2 %
SNB Capital 2,700.00 2,765.54 2.4 %
Al Rajhi Capital 2,617.00 2,765.54 5.7 %
OSOOL AND BAKHEET 2,560.00 2,765.54 8.0 %

Current
Market Cap (M Riyal) 189,750.00
Enterprise Value (EV) (M) 187,307.14
Shares Outstanding ((M)) 5,000.00
EPS ( Riyal) (TTM) 2.69
Book Value (BV) ( Riyal) 16.09
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 16.76
P/E (TTM) 14.08
Price/book 2.36
Return on Average Assets (%) (TTM) 9.0
Return on Average Equity (%) (TTM) 17.4

Share Price

37.95
(0.15) (0.39 %)

Saudi Telecom Co. (STC)


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