The Saudi Arabian Internet and Communications Services Company (solutions by stc)’s quarterly profits surpassed analyst expectations of SAR317 million ($84.6 million). The company’s Q3 profits rose by 29 percent, reaching SAR387 million. This was disclosed on the Saudi stock market website Tadawul.
Read more: Saudi’s solutions by stc to buy controlling stake in Egypt’s Giza System
The notable rise in profits was fueled by a substantial 37 percent increase in revenues, reaching SAR2.8 billion during Q3. However, there was a partially offsetting factor to this positive trend. Revenue costs increased by 30 percent. The increase amounted to SAR459 million. This brought the total to approximately SAR2 billion.
Based on reported data, the company, which is 79 percent owned by stc, recorded a notable profit growth of 20.3 percent. Also, the profit amounted to SAR1.03 billion ($275 million). This profit growth was achieved during the initial nine months of 2023.
Binding agreement worth $198 million
On October 15, solutions by stc finalized a binding agreement to acquire a 40 percent stake in Devoteam Middle East, a Riyadh-based company.
In addition, the total value of Devoteam is estimated at $198 million. solutions by stc has expressed its intention to fund the acquisition through its own internal resources.
Devoteam Middle East is a renowned technical consultancy and business digital transformation company. This is according to a Tadawul disclosure. Additionally, with its international expertise, the company offers a range of services including digital strategic consultancy, business transformation, digital transformation infrastructure, intelligent data analytics, and business automation.
Furthermore, Solutions by stc stated that the agreement would have a positive contribution. This would be towards enhancing their consulting services and digital business transformation services.
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