Union Atheeb Reports 358% Annual Profit Increase, Reaching $51.4 Million

Union Atheeb (GO Telecom) has announced an unprecedented annual net profit of 193 million riyals (USD 51.4 million), a significant rise from the previous year's net profit of 42 million riyals (USD 11.2 million). This represents an impressive 358% increase compared to the previous fiscal year.

The company's financial results for the fiscal year ending on March 31 showcased annual profits for the second consecutive year, reflecting the ongoing improvement in both financial and operational performance. The financial results revealed revenues exceeding 1 billion riyals (USD 266 million), marking a 61% growth. The company also reported a total profit of 305.5 million riyals (USD 81.4 million), a 67% increase, and operating profits of 199 million riyals (USD 53 million), a substantial 244% rise.

Union Atheeb also announced that its Board of Directors has recommended distributing cash dividends to shareholders for the fiscal year 2023-24, amounting to 3% of the nominal share value.

From a financial performance perspective, Union Atheeb has focused on enhancing profitability, streamlining costs, and improving its financial standing. The company successfully increased its capital by 250 million riyals (USD 66.6 million), which is expected to positively impact future growth.

Additionally, the company continued to address its debt obligations. Union Atheeb signed an agreement with Tawal to settle all balances and receivables and transfer ownership of telecommunications towers. The company also signed a settlement agreement with the Communications, Space and Technology Commission, resulting in the write-off of 64 million riyals (USD 17 million) in disputed government receivables and the installment payment of 63.8 million riyals (USD 17 million) over seven years, starting in 2025.

The company also reported a significant improvement in cash flow due to better collection from customers, which positively affected its available cash.

In this context, Dr. Issa Ba-Issa, Chairman of the Board of Directors of Union Atheeb (GO Telecom), stated that the results reflected the ongoing development in the company's financial and operational performance, which will positively impact the company's shareholders. He emphasized that the company is on the right path, achieving strategic transformation goals and contributing to the ambitions of Vision 2030 in the telecommunications sector.

Dr. Ba-Issa added that the Board of Directors' recommendation to distribute dividends to shareholders was to enhance shareholder investments following the company's historic revenue and profitability, reflecting sustainable profitability and growth.

Yahya Al-Mansour, CEO of Union Atheeb (GO Telecom), affirmed that achieving these historic annual operating profits for the second year in a row resulted from the continuous execution of the company's transformation strategy and the outstanding performance of its team.

Al-Mansour stated that GO Telecom is committed to strengthening its leadership in the telecommunications and information technology market in the Kingdom and contributing to the digital transformation, in line with the company's plan to enhance its competitive edge and increase its market share.

He concluded, "We understand that sustaining success and profitability in a competitive sector is a significant challenge, but we have succeeded and achieved historic profits. We will continue this success in the upcoming period by developing more ambitious strategies and entering new markets to meet the aspirations of our shareholders and subscribers and continuing to align with Vision 2030 and achieve the goals of the strategic transformation."