UAE accounts for 42.62% of Gulf telecom sector net profits in Q2

The UAE accounted for about 42.62% of the net profits of the telecom sector in the Gulf countries by the end of the second quarter of this year, which rose by 18.7% to $3.05 billion from $2.57 billion in the same quarter last year.

According to a survey by “Emirates Today” based on sector disclosures in the Gulf financial markets, the UAE telecommunications sector achieved profits during that period amounting to $1.3 billion by the end of the second quarter of 2024, compared to $1.038 billion by the end of the second quarter of 2023, an increase of 25.2%.

This was supported by the increase in profits of the “&I” Group, “Yahsat” and “Emirates Integrated Telecommunications Company” “du” by rates of 25.5%, 11.7% and 46.23% respectively.

Saudi Arabia accounted for 36.33% of the sector’s net profits during that period, after its listed companies achieved profits worth $1.11 billion by the end of the second quarter of 2024, compared to $964.09 million by the end of the second quarter of 2023, an increase of 14.9%.

The three largest companies in the telecommunications sector in the Saudi market witnessed a 12.45% increase in net profits during that period, as a result of the increase in the profits of Mobily, which is the second mobile phone service provider in the Kingdom, by 32.94% in the second quarter of this year compared to the same period last year.

STC, the fifth largest listed company on the Saudi market, also saw its profits grow by 9.84% year-on-year compared to the profits at the end of the second quarter of 2023. The decline in the sector’s profits in that period of the current year came despite a 7.9% increase in Zain Saudi Arabia’s net income.

The profits of the telecommunications sector in the Qatar Stock Exchange also increased by 14.66% to reach $302.6 million by the end of the second quarter of this year, compared to $263.9 million by the end of the second quarter of the previous year, after the profits of Ooredoo Qatar increased by 14.9% to reach $262.92 million, compared to $228.84 million in the same period of the previous year, followed by the profits of Vodafone Qatar, which increased by 13.13%, on an annual basis.

On the Muscat Securities Exchange, the results of the telecommunications sector witnessed a shift towards profits, reaching $44.24 million by the end of the second quarter of this year, compared to losses of $51.25 million compared to the second quarter of the previous year.

This came as a result of the transformation of Omantel’s business results to profits, which amounted to $38.71 million at the end of the second quarter of this year, compared to losses amounting to $59.04 million at the end of the second quarter of the previous year, as a result of the increase in revenues.

The net profits of telecommunications companies listed on the Kuwait Stock Exchange topped the list of the most declining in the sector during that period, by 3.6% at the end of the second quarter of this year, as a result of the decline in the profits of each of Zain by 8.7%, while the profits of Ooredoo and STC increased by 17.7% and 3% respectively compared to the second quarter of 2023.

The profits of the telecommunications sector in the Bahrain Bourse also decreased by 2% to reach $56.09 million by the end of the second quarter of this year, compared to $58.03 million by the end of the second quarter of the previous year, after the profits of Bahrain Telecommunications Company – Batelco decreased by 0.5% to reach $52.50 million by the end of the second quarter of this year, from $52.77 million by the end of the same period of the previous year, while the profits of Zain Bahrain Company increased by 2.73% to reach $3.58 million, compared to $3.50 million in the same period of the previous year.