stc has announced the annual consolidated financial results for the year ending at 31st December 2024, reflecting robust growth across key financial metrics.
Key Financial Highlights:
- Revenues for the year 2024 reached SAR 75,893m with an increase of 5.7% as compared to 2023.
- Gross Profit for the year 2024 reached to SAR 37,300m with an increase of 7.4% as compared to 2023.
- Operating Profit for the year 2024 reached to SAR 14,426m with an increase of 9.6% as compared to 2023.
- Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the year 2024 reached to SAR 23,926m with an increase of 6.6% as compared to 2023.
- Net Profit for the year 2024 reached to SAR 24,689m with an increase of 85.7% as compared to 2023.
- stc distributes SAR 0.55 per share for the 4th quarter of 2024, in accordance with the dividend distribution policy approved by the General Assembly, in addition to an extra cash dividend of 2 SAR per share.
Remarking on these results, Eng. Olayan Alwetaid, CEO of stc Group, praised the Group’s outstanding performance and financial results during the year, reflecting the performance of its subsidiaries, which achieved 16% growth, as well as the implementation of a cost efficiency program that played a pivotal role in enhancing financial performance, with the Group planning to continue adopting it as part of its culture.
The Group CEO further emphasizes that these results reflect the successful execution of the Group’s strategy and the achievement of its financial and operational plans. Additionally, stc’s focus on fostering innovation and enhancing customer experience played a key role in driving sustainable growth, contributing to the outstanding performance during 2024. The Group achieved revenue growth of 5.7%, an increase in operating profit of 9.6%, and a bottom line that registered an increase of 85.7%. Notably, when excluding one-off items, the Group achieved net profit growth of 13%.
The Group CEO also pointed out that stc has successfully undertaken several strategic initiatives. The Group signed a contract, the largest of its kind, valued at SAR 32.64 billion, to build, operate, and provide telecommunications infrastructure services for a government entity. Additionally, stc launched its digital bank after obtaining approval from the Saudi Central Bank, marking a significant step in offering innovative financial solutions to support individuals and businesses while advancing the digitization of the financial sector. stc also successfully completed all procedures for selling 51% of its stake in TAWAL to the Public Investment Fund (PIF) after obtaining all necessary approvals. This move aligns with the efforts of the Group and the PIF to establish a leading company in building and operating telecommunications and IT infrastructure worldwide by merging TAWAL with the PIF's subsidiary, Golden Lattice Investment. On the international front, stc received approval from the Spanish Council of Ministers to increase its voting rights in Telefónica from 4.97% to 9.97%, along with the right to appoint a member to the company's Board of Directors. This investment is part of the Group’s strategy for growth and expansion, focusing on strategic investments that deliver added value.
Following the remarkable financial results achieved by the Group, the Group CEO stated that stc's Board of Directors has decided to recommend additional cash dividends for the fiscal year 2024 amounting to SAR 2 per share, equivalent to SAR 10 billion. This is in addition to the Approved distribution under the company's policy, which was activated from the fourth quarter of the year 2024. Thus, the total cash distributions for 2024 amount to SAR 3.75 per share. This policy reflects the Group’s ongoing commitment to maximizing and enhancing investor returns.
Eng. Alwetaid also highlighted that stc’s strategic focus on innovation and excellence in digital infrastructure has been translated into action through a series of partnerships. This includes a strategic partnership with Diriyah Company, under which stc will design, build, and operate a neutral infrastructure for the second phase of the Diriyah project. Additionally, the Group signed a strategic partnership with New Murabba, aiming to enhance and facilitate the implementation of advanced communications and information technology at New Murabba, as well as leveraging the innovative digital solutions provided by the Group. These partnerships reaffirm the Group's commitment to advancing digital and technological transformation in major projects across the Kingdom and its position as a leading enabler of digital transformation in the region.
Finally, building on the Group’s achievements in 2024, stc maintained its position as the most valuable telecom brand in the Middle East for the fifth consecutive year. It also advanced to become the ninth most valuable telecom brand in the world, with the Group’s brand value increasing by 16% to SAR 60.4 billion in 2024, according to 'Brand Finance’s' report. This further reflects stc’s leadership on a global scale and its pivotal role in the digital economy. Additionally, stc achieved significant growth in its local content percentage, reaching 44.32% in 2024, with total spending on local content exceeding SAR 16 billion. This achievement underscores stc’s commitment to contributing to the development of the local ICT sector and creating sustainable economic growth.
Source: stc Press Release