Riyadh, Kingdom of Saudi Arabia, 28 April 2022- stc has announced the company’s preliminary financial results for the period ending at 31 March 2022:
- Revenues for the 1st quarter reached SR 16,991m with an increase of 8.26% compared to the corresponding quarter last year.
- Gross Profit for the 1st quarter reached to SR 9,150m with an increase of 6.93% compared to the corresponding quarter last year.
- Operating Profit for the 1st quarter reached to SR 3,824m with an increase of 9.82% compared to the corresponding quarter last year.
- Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the 1st quarter reached to SR 6,300m with an increase of 7.86% compared to the corresponding quarter last year.
- Net Profit for the 1st quarter reached to SR 3,035m with an increase of 2.81% compared to the corresponding quarter last year.
In accordance with the approved dividend policy for three years starting from the 4th quarter 2021, which was announced on 27 September 2021, and has been ratified during the Ordinary General Assembly Meeting on November 30th 2021, stc will distribute a total of SR 1,997.1 million in cash dividend for Q1 2022, representing SR 1 per share. The eligibility of dividends shall be for the shareholders at the close of trading on Wednesday 11/05/2022 corresponding to 10/10/1443 H and as per the registered shareholders in the register of The Securities Depository Center Company at the end of the 2nd trading day following the eligibility date. Dividend distribution date will be on 31/05/2022 corresponding to 01/11/1443H.
Commenting on these results, Eng. Olayan Mohammed Alwetaid, stc Group CEO, stated that the group continued to achieve positive financial results, as the company was able to grow its top line by 8.3% for the first quarter of 2022 when compared to the same quarter of 2021, supported by the exceptional performance from the Enterprise business unit, as revenues grew by 16.3%, due to the strong demand from the public and private sectors for innovative products and services and the company’s ability to fulfill the various needs of its clients. Furthermore, the Consumer business unit registered a top-line growth of 5.9%, supported by the growth in FTTH subscribers by 4.4%, FWA subscribers by 8.3%, and working lines by 4.6%. The Wholesale business unit also contributed positively to the company’s performance, as it registered 7.8% revenue growth, supported by a 20.6% growth in its international revenues.
In achieving stc’s vision, its “DARE 2.0” strategy, and its ambitious growth plans, the Group started 2022 by announcing a number of investments and partnerships in new sectors and domains. This can be seen by the announcement made by “Tawal” (one of the Group’s subsidiaries) regarding its potential acquisition of the Pakistani towers company "Awal Telecom". The acquisition, once completed, would be the first of its kind outside the Kingdom for Tawal. The acquisition is expected to contribute to strengthening Tawal’s international investment map, and enhance its ability to grow and expand in the field of telecommunications and infrastructure. Moreover, "Solutions by stc” (one of the Group’s subsidiaries) announced the signing of a binding agreement to acquire 89% of Giza Systems Company in addition to 34% of Giza Arabia, a subsidiary of Giza Systems Company, which represents the shares that are not owned by Giza Systems Company. The potential acquisition demonstrates stc Group’s commitment towards enabling the Kingdom’s digital transformation, in addition to enhancing the Kingdom’s position in the information and communication technology sector.
The Group CEO also pointed out stc’s initiative to establish a major digital hub “MENA Hub” for the Middle East and North Africa with an investment of USD 1 billion. This initiative is a confirmation of stc’s leading position across the ICT sector in the region. The Hub initiative, supported by the Group’s capabilities, would also contribute to the diversification and growth of the Kingdom's economy. The hub will link three continents, benefiting from the strategic location of the Kingdom, and promoting investment in international communication services and data centers. The hub will include the installation of a number of highly efficient cables to meet the future requirements of cloud services, by investing in an advanced fiber optic network that ensures continuous availability of services.
Recently, The Public Investment Fund and stc group announced the signing of a partnership agreement to establish a new company in the field of Internet of Things technologies, in order to support the adoption of these technologies within the Kingdom. The signing of the agreement reflects the efforts of the Fund and stc Group in contributing to enabling the IoT sector in the Kingdom and expanding regionally in the Middle East and North Africa, to keep pace with the rapid development in this sector.
Finally, we are proud of the achievements accomplished by stc Group so far to enable the digital transformation of the kingdom. In stc, we will continue to commit to be a vital resource for the national economy and a major enabler of digital transformation according to the KSA Vision 2030 goals, looking forward to a bright future for the ICT sector.
Source: Press Release