Kuwait Telecommunications Company (stc), a world-class digital leader providing innovative services and platforms to customers enabling the digital transformation in Kuwait, held its Ordinary General Assembly (AGM) at the Company’s Headquarters – Olympia Mall / West Office Towers on 21 March 2023, where the attendance represented 76.227% from the total shareholders. The AGM was held physically and virtually using the online platform provided by Kuwait Clearing Company.
The AGM approved the Board of Directors’ and Financial Position’s report, the Auditors’ report and the Sharia Committee’s report for the fiscal year ended on 31 December 2022. The AGM also approved the Audit Committee report and the Corporate Governance report including the Board of Directors’ and the Executive Management’s remuneration and benefits report for the year ended on 31 December 2022 besides approving all the other items in the AGM agenda. The AGM also approved the Company’s financial statements and the Board of Directors’ recommendation to distribute cash dividends of 30 Kuwaiti fils, representing 30% of the share’s nominal value for the year ended 2022, for shareholders registered in the Company’s shareholders register as at the end of the record date set for it on Thursday corresponding to 06 April 2023. The cash dividends will be distributed to the shareholders who are entitled to it at payment date, as of Tuesday, corresponding to 11 April 2023
Commenting on the announcements of these results, Dr. Mahmoud Ahmed Abdulrahman, stc’s Chairman, stated: “Kuwait Telecommunications Company (stc) witnessed a number of outstanding achievements during 2022 in terms of expanding the Company’s operating model, supporting the digital transformation strategy and adding value to its shareholders. Therefore, stc was keen to capture all the available business opportunities that shall support the Company to achieve growth in its operations as well as financial results in line with the rapid development of the Telecommunications sector. Whereby, stc has been able to sustain its flexibility to drive further progress and accelerate the digital transformation process. The reliance on stc’s solid infrastructure has been crucial in achieving its corporate strategy focused on expanding the Company’s operations, especially in the enterprise sector. This has contributed in achieving stc's desire to support its internal capabilities, enhance its market share, and upgrade its customer experience.
Commenting on the company's financial position as at 31 December 2022 Dr. Mahmoud, stated: "stc’s total assets reached KD 424.4 mn by the end of December 2022, while total shareholders' equity increased by 2% reaching KD 241.4 mn. Moreover, stc has a strong solvency position among its peers in the Middle East.”
Dr. Abdulrahman commented on the cash dividend recommendation of 30% of the Company's total capital for the fiscal year ended December 31, 2022, saying: “stc has demonstrated its capacity by maintaining good cash flows resulted from adopting its successful business model as well as financial planning that ensure good financial returns and results that would enable the company to distribute sustainable cash dividends on an annual basis, and in the best interest of the company's valued shareholders.”
Commenting on stc’s achievements in 2022, Eng. Maziad Alharbi, stc’s CEO stated: “stc’s robust results during the financial year ended in December 2022, demonstrated the successful implementation of its corporate strategy with all the operational and financial KPIs adopted. This was the key factor behind reaching stc’s best results aimed at exceeding the aspiration of our customer’s in addition to placing stc amongst the leading companies in Kuwait for digital transformation and providing integrated technical solutions with a value added to the traditional telecommunications sector. This is considered as an added value to the traditional telecommunications sector due to acquiring the most sophisticated 5G network as well as solid infrastructure that shall fulfill all the customer needs.”
Alharbi noted: “stc’s strategic expansion in April 2022 through the acquisition of E-Portal Holding Company and its subsidiaries demonstrated the Company’s success in creating strong and solid grounds to achieve the sustainable growth in the future through the holistic operating model, which significantly supports the strategic pillars of its digital transformation process. Our subsidiaries solutions by stc and E-Portal specialized in in providing the latest business solutions play a key role in supporting the Company to expand its operational model, ensure the best outcomes and capture all the potential opportunities.”
Commenting on the announcement of company’s financial results for the year ended December 31, 2022, Eng. Maziad Alharbi said: “stc proudly managed to achieve strong financial results in 2022, recording the highest total revenue since inception to reach KD 336.4 mn with a growth rate of 13.5% in 2022, compared with KD 296.3 mn last year. This growth in revenue was achieved with the significant support from the increase in stc’s customer base which has reached 2.3 million customers by the end of December 2022, representing a rise of 14.4% compared to December 2021. Accordingly, EBITDA witnessed a growth of 3.1% to reach KD 82 mn in 2022 which resulted in a net profit of KD 33.2 mn (earnings per share 33 fils) during 2022, driven by the increased revenue and the efficiency of stc’s operational expenditure.”
Source: Press Release