stc announced the company’s preliminary financial results for the period ending at 30 September 2022.
Revenues for the 3rd quarter reached SAR 16,468m with an increase of 4.66% as compared to the comparable quarter last year. For the 9 months period of 2022, the revenues reached SAR 50,398m with an increase of 6.48%.
Gross Profit for the 3rd quarter reached to SAR 10,040m with an increase of 19.97% as compared to the comparable quarter last year. For the 9 months period of 2022, the Gross Profit reached SAR 28,365m with an increase of 12.21%.
Operating Profit for the 3rd quarter reached to SAR 4,576m with an increase of 43.36% as compared to the comparable quarter last year. For the 9 months period of 2022, the Operating Profit reached SAR 12,120m with an increase of 22.13%.
Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the 3rd quarter reached to SAR 7,073m with an increase of 26.17% as compared to the comparable quarter last year. For the 9 months period of 2022, the Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) reached SAR 19,577m with an increase of 14.67%.
Net Profit for the 3rd quarter reached to SAR 3,541m with an increase of 21.10% as compared to the comparable quarter last year. For the 9 months period of 2022, the Net Profit reached SAR 9,413m with an increase of 8.22%.
In accordance with the dividends distribution policy for three years period starting from the 4th quarter of 2021, which was ratified during the Ordinary General Assembly Meeting on 30-11-2021. In addition to the amendment on the dividends distribution policy, which was ratified by the Extraordinary General Assembly Meeting on 30-8-2022, by distributing an amount of SAR 0.40 per share per quarter, stc will distribute a total of SAR 1,996.15 million in cash dividend to the shareholders for the 3rd quarter 2022, representing SAR 0.40 per share as the total number of Treasury shares related to the Employees Stock Incentives Plan stood at 9,629,357 shares at the end of the third 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 Wednesday 02-11-2022 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 Tuesday 22-11-2022.
Commenting on these results, Eng. Olayan Mohammed Alwetaid, stc Group CEO, stated that we are proud of the group’s positive financial result, which indicates the group commitment towards its comprehensive strategy and investments diversification in multiple domains; which had a clear and tangible impact on profits growth while achieving a sustainable return for the company’s shareholders.
Alwetaid also pointed out that during the third quarter of this year, stc's general assembly approved the increase of the company’s capital to SAR 50 billion, which considered the largest capital increase in the history of the Saudi stock market, making the company the second largest listed company in terms of capital. This increase aims to support the group in achieving its strategy that aimed at expansion and growth, along with maximizing the return for its shareholders, by increasing and diversifying investments and seizing the expected growth opportunities in the telecommunications and information technology sectors in the Kingdom of Saudi Arabia and the region.
In light of stc group role as a leading digital enabler in the Kingdom and the region, the company has announced a corporation between stc group and the Greek Telecom Company, TSSA, to build East to Med Data Corridor (EMC) undersea and land fiber optic data cable that will link Europe with Asia. This new project shows the nature of stc group’s ambition and capabilities to provide connectivity and hosting technologies as well as increasing data center capacity to meet the markets demand of Asia, Europe and the rest of the world through the Saudi Arabia’s distinguished and strategic geographical location.
stc group has also landed the “Saudi Vision Cable” in the Red Sea through its first landing station in Jeddah. With the name inspired by the KSA Vision 2030, the Saudi Vision Cable spans 1,160,000 meters and it is considered the first ever high-capacity submarine cable in the Red Sea region that will provide seamless connectivity through four landings in Jeddah, Yanbu, Duba, and Haql. This submarine cable, which is fully owned by stc group, reflects the group’s leadership in providing advanced and comprehensive international telecommunications services through a strong and diversified infrastructure.
In reference to what was previously announced on the group’s intention to establish a main digital center “MENA HUB”, stc group launched “Center3” company, the digital regional center for the Middle East and North Africa, which considered one of stc group largest and significant projects. The new company will be the owner of the digital infrastructure assets, including data centers, submarine cables, international points of presence, and internet exchange points. It aims to develop digital businesses and enhance investment opportunities in international communication services and data centers by providing the latest communication and hosting technologies and increasing the capacity of data centers to meet the demand of the markets across Asia, Europe, Africa, and the rest of the world.
Finally, with the launch of Center3, stc group have developed the digital eco-system by launching a number of companies in the fields of cybersecurity, artificial intelligence, cloud computing, Internet of Things and digital infrastructure. These achievements will contribute in transforming the digital industry in KSA into a leading industrial power and a global logistics center, connecting the business environments and the local community digitally through an advanced infrastructure, and contributing to the prosperity and growth of the digital economy in the Kingdom in light of the Kingdom’s Vision 2030.
Source: Press Release