stc announced the company’s preliminary financial results for the period ending at 30 June 2023:
- Revenues for the first half of 2023 reached SAR 36,506m with an increase of 8.17% as compared to the comparable period last year.
- Gross Profit for the first half of 2023 reached to SAR 18,488m with an increase of 0.90% as compared to the comparable period last year.
- Net Profit for the first half of 2023 reached to SAR 6,117m with an increase of 4.17% as compared to the comparable period last year.
- Semiannual results of 2023 does not include profits from the land sold.
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 1,993.79 million in cash dividends to the shareholders for the 2nd quarter of 2023, representing SAR 0.40 per share as the total number of Treasury shares related to the Employees Stock Incentives Plan stood at 15,526,653 shares at the end of the second quarter 2023 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 Thursday 03-8-2023 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 Wednesday 23-8-2023.
Commenting on the results, Olayan Mohammed Alwetaid, stc Group CEO, pointed out that during the previous period and in line with the company’s vision and strategy “DARE 2.0”, which includes expansion in size and scope, stc Group through “solutions” (one of the Group’s subsidiaries), signed a binding offer to acquire 40% of “Devoteam Middle East”, a leading company in the field of innovative digital business consulting. This expansion will enhance stc Group's capabilities in the information technology sector and enable digital transformation through an integrated system of subsidiaries specialized in digital infrastructure, internet of things, cloud computing, cybersecurity, digital financial services, business outsourcing services and others.
In light of the Group’s role as a leading digital enabler in the Kingdom and region, “center3” (one of the Group’s subsidiaries), announced the arrival of the world’s longest submarine cable “2Africa” to Jeddah and Yanbu, and to reach Duba later this year and Al-Khobar during 2024. This cable is one of the longest submarine cables in the world and this project will connect 33 countries across three continents: Africa, Asia and Europe. In addition, “center3” signed a strategic agreement with “Huawei” to establish a cloud region in the Kingdom, which will provide a high level of advanced and secure cloud services to provide data hosting services and meet the growing demand for cloud services. Moreover, “center3” has also increased the capacity of its data center in Riyadh by 9.6 megawatts, aiming to improve and increase the capacity of data hosting services provided by “center3” to its customers, which contributes to strengthening the Kingdom’s position as a regional digital center.
Further and as part of the Group’s endeavor to support entrepreneurship, enable innovation in the Kingdom and contribute to the promotion of digital economy in technology fields, stc Group announced that the value of investments obtained by the entrepreneurs participating in the “InspireU” accelerator has reached more than SAR 700 million. Furthermore, “InspireU” accelerator has succeeded in enabling more than 90 emerging digital projects in various fields since inception, and the market value of investments and financial transactions for projects incubated by the program is amounted to more than SAR 12 billion. In addition, more than 40 million users benefited from “InspireU” entrepreneurial projects, which provided more than 600,000 job opportunities that confirms stc’s contribution to promoting the digital economy, creating job opportunities and supporting local content by transforming entrepreneurs’ ideas into successful projects.
The Group CEO also added, stc Group participated this year in Hajj season by preparing the holy sites with latest technologies and innovative solutions, Which resulted in achieving a remarkable growth in network and data traffic during the Hajj season 1444 AH, as the 5G network recorded an increase in the volume of usage during the days of Eid Al-Adha by 211% compared to the Hajj season last year. As well as a growth in the number of international users of its network by 39% compared to the number of international users in the previous year. In addition, international roaming customers on stc network increased by 121% compared to last year. stc is proud of its role in achieving the aspirations of our wise leadership by contributing to the success of this year's Hajj season.
Finally, we at stc are proud of the Group's pioneering role in enabling digital transformation in the Kingdom and the region, as the Group continues its endeavor to expand the scope of its digital service and provide technology solutions and world-class communications services to serve the local and regional communities, in line with our strategy "DARE 2.0". That raises the level of our aspirations to continue growing in scale and scope of our digital eco-system to provide the best and latest technologies, and contribute to achieving the objectives of the Kingdom's "2030" vision.
stc has also noted that the semiannual results does not include profits from the land it has sold and was announced on the 10th of July 2023.
Source: Press Release