Riyadh, Saudi Arabia — Etihad Atheeb Telecom Company (GO Telecom) reported a 14.5% increase in annual net profit, reaching SAR 223 million for the fiscal year ending March 31, 2025, compared to SAR 195 million in the previous year.

GO Telecom Profit Growth Driven by Strong Revenue Performance

Total revenues rose by 44%, climbing to SAR 1.46 billion from SAR 1.01 billion. The company credited this growth to robust enterprise sector performance, wholesale service expansion, and contributions from newly acquired subsidiary eJadTech.

Enterprise revenues increased by SAR 229 million (44%), driven by major projects with government bodies and private companies. Wholesale revenues expanded by SAR 204 million, supported by the rollout of voice and fiber optic services.

The acquisition of eJadTech added SAR 42.5 million to group revenue. However, this came with SAR 35.2 million in expenses, partially offset by SAR 7.3 million in net profit from the subsidiary.

Operational Growth Despite Cost Pressures

Total costs rose in line with revenue growth (SAR 320 million increase). The company also recorded higher expected credit losses (SAR 24.6 million) and administrative expenses (SAR 24 million).

Financial costs declined marginally by SAR 0.69 million, supported by SAR 20 million in income from Islamic deposits. GO Telecom also emphasized sustainable operational growth, noting that last year’s results included one-off profits of SAR 56 million from settlements with Tawal and the Communications, Space & Technology Commission (CST).

The company revised its expense recognition process, now allocating costs and provisions quarterly—impacting zakat, tax, and staff bonus items.

The Saudi Standard’s View: GO Telecom Profit Growth Signals Business Sector Strength

GO Telecom profit growth highlights steady expansion across enterprise and wholesale segments. The acquisition of eJadTech reflects the company’s efforts to diversify revenue and tap into technology-driven services.

While higher provisions and operational expenses persist, the underlying financial performance demonstrates resilience in Saudi Arabia’s competitive telecom sector. Sustained fiber optic expansion and growing enterprise demand position GO Telecom for continued growth, though margin pressures from administrative and credit costs require monitoring.

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