stc announced the company’s preliminary financial results for the period ending at 30 June 2022:
- Revenues for the 2nd quarter reached SAR 16,939m with an increase of 6.54% compared to the corresponding quarter last year. For the first half of 2022, the revenues reached SAR 33,930m an increase of 7.39%.
- Gross Profit for the 2nd quarter reached to SAR 9,174m with an increase of 9.84% compared to the corresponding quarter last year. For the first half of 2022, the Gross Profit reached SAR 18,324m with an increase of 8.37%.
- Operating Profit for the 2nd quarter reached to SAR 3,720m with an increase of 14.46% compared to the corresponding quarter last year. For the first half of 2022, the Operating Profit reached SAR 7,543m with an increase of 12.05%.
- Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the 2nd quarter reached to SAR 6,204m with an increase of 10.25% compared to the corresponding quarter last year. For the first half of 2022, the Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) reached SAR 12,504m with an increase of 9.03%.
- Net Profit for the 2nd quarter reached to SAR 2,837m with an increase of 0.57% compared to the corresponding quarter last year. For the first half of 2022, the Net Profit reached SAR 5,872m with an increase of 1.71%.
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 SAR 1,997.5 million in cash dividend to the shareholders for the 2nd quarter 2022, representing SAR 1 per share as the total number of Treasury shares related to the Employees Stock Incentives Plan stood at 2,499,963 shares at the end of the second quarter 2022 and those shares are not entitled for any dividends distribution. The eligibility of dividends shall be for the shareholders at the close of trading on Sunday 07-08-2022 and as per the registered shareholders in stc’s shareholders registry in the Depository Center at the end of the 2nd trading day following the eligibility date. Dividend distribution date will be on 25-08-2022.
Consequently, Alwetaid stated, “Among these investments is the establishment of a major digital center for the Middle East and North Africa "MENA HUB” with capital of nearly SAR 4 billion, which will strengthen the Kingdom's position as a significant digital center in the region and the world. Moreover, a new company in the field of IoT was established in partnership with the Public Investment Fund (PIF) to support IoT technologies in the Kingdom through stc’s reliable digital infrastructure to take advantage of the expected growth and increasing demand for its services and products. Adapting to the ICT acceleration pace, Solutions by stc (one of the group's subsidiaries) announced its acquisition of 89% of Giza Systems Company and 34% of the remaining share - not owned by it - in its subsidiary, Giza Arabian Systems, to expand and diversify its products and services to meet customers’ demand. This acquisition also enhances Solutions by stc’s position and leadership in enabling digital transformation in the Kingdom and the region.
Alwetaid confirmed, “These investments reflect stc group commitment of achieving its strategy to expand in scope and scale to be aligned with Kingdom’s digital transformation acceleration pace, diversify investments and build a comprehensive digital ecosystem.”
In line with the objective of supporting the group in achieving its “DARE 2.0” strategy that aims for expansion, growth, and maximizing shareholders’ return through increasing and diversifying investments and seizing growth opportunities in the telecommunications and information technology sectors in the Kingdom and the region; stc’s board of directors recently recommended increasing the company’s capital by 150% to reach SAR 50 billion by granting bonus shares through capitalizing SAR 30 billion from retained earnings.
Finally, Alwetaid stated, “We are proud of the achievements made during the past. We will continue working on accelerated pace, providing the latest technological solutions in addition to developing a reliable digital infrastructure within our digital ecosystem.
This will boost the Kingdom’s position as a leading digital service center through innovative projects and global partnerships. Thus, enabling the digital transformation of the public and private sectors will reflect in strengthening the digital economy in harmony with the Kingdom's Vision 2030.
Source: Press Release