stc Group achieves highest quarterly revenues in its history
Riyadh, May 10, 2023, SPA -- Saudi Telecom Company (stc) today announced the company’s preliminary financial results for the period ending on March 31, 2023:
* Revenues in the 1st quarter reached SAR18,179m, marking with a 7.45% increase over the corresponding period last year.
* Gross profits in the 1st quarter reached SAR9,355m, a 2.24% increase over corresponding period last year.
* Operating profits in the 1st quarter reached SAR3,731m, marking a 2.43% decrease compared to the the corresponding period of the year before.
* Earnings before interest, taxes, zakat, depreciation and amortisation (EBITDA) reached SAR6,343m in the 1st quarter, a 0.68% increase over the corresponding period last year.
* Net profits reached SAR3,109m in the 1st quarter, a increase 2.44% over the corresponding period last year.
In accordance with the dividend distribution policy for a three years period starting with the 4th quarter of 2021, which was ratified during the Ordinary General Assembly Meeting on November 30, 2021, and with the amendment to the dividend distribution policy, which was ratified by the Extraordinary General Assembly Meeting on August 30, 2022, stipulating distributing an amount of SAR0.40 per share per quarter, stc will distribute a total of SAR1,992.87 million in cash dividends to the shareholders for the 1st quarter of 2023. The total number of Treasury shares in the Employees Stock Incentives Plan stood at 17,821,798 at the end of Q1 2023; those owning these shares are not entitled to receive dividends. Eligible to receive dividends are shareholders at the close of trading on May 18, 2023, as per the registered shareholders in stc. Dividends will be distributed on June 7, 2023.
Commenting on the financial results, stc Group CEO Eng. Olyan Mohammed Alwetaid said that during the first quarter of this year, in line with the company's "DARE 2.0" strategy, the group launched its Corporate Investment Fund (CIF), which aims to invest in early stages of startups in various domains, including fintech, cybersecurity, artificial intelligence, Internet of Things, and other promising areas. The launch of the fund reinforces the group's leadership in the digital and innovation fields by expanding investment in new sectors and supporting entrepreneurs and startups relevant to the group's strategy, locally, regionally and globally, and comes in support of the Kingdom's Vision 2030, which stipulates diversifying the economy.
Recently, stc Group announced its entry into the European market through its subsidiary TAWAL, a leading provider in ICT infrastructure. TAWAL has signed an agreement to acquire United Group’s telecommunications tower assets. The agreement, valued at 1.22bn euros (around SAR5 billion), supports stc Group’s ambitious strategy to expand its international footprint. This acquisition represents another significant step for the stc Group in executing its strategy of expansion and growth, following its entry into several promising fields and investments in information technology, Internet of Things, cloud computing, information security, fintech and digital entertainment, as well as its geographic expansion in Bahrain, Kuwait, and Malaysia through its subsidiaries.
As part of the company's "DARE 2.0" strategy, which aims to expand the activities and investments of the group, solutions by stc (one of the group's subsidiaries) has completed the acquisition of 100% of the Contact Centres Company (ccc), the business process outsourcing market leader in the Kingdom of Saudi Arabia, with an enterprise value of SAR450 million. Through this acquisition, solutions by stc aims to boost its growth and leadership position in the ICT sector in the Kingdom. This is the second acquisition for solutions by stc, following its acquisition of Giza Systems last year.
Alwetaid also pointed out that stc Group, through the global technology conference "LEAP23", signed more than 40 agreements with major global and local companies, which will support future technologies and contribute to accelerating the digital transformation of the public and private sectors. in line with the group's strategy and the Kingdom's Vision 2030.
Since the Kingdom's Vision 2030 is a sustainable endeavour, stc has announced its commitment to contribute to planting one million trees by 2030. Through this commitment, the group seeks to support the Kingdom's targets in the Saudi Green Initiative and the Middle East Green Initiative, to support natural plant growth and to enrich local wildlife. stc contributes to setting plans and goals that promote reducing emissions and waste, raising awareness, and identifying risks and opportunities arising from the effects of climate change. It aims to reduce the impact associated with the use of its products and services, and enable both the public and private sectors, and its customers to reduce their carbon footprint through its services.
"We remain committed to support the growth of the digital economy in the Kingdom and contribute to the development of the telecommunications and information technology sector, with the support of our visionary leadership," Alwetaid said stc Group pledged to continue to be a vital contributor to the national economy and a leading enabler of digital transformation in various sectors, enhancing the Kingdom's position as a regional hub, in line with the goals of the Saudi Vision 2030.
--SPA
