Page 26 - SAMENA Trends - February 2020

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

stc Kuwait Telecommunications Company Records KD43.6 Million
(US$143.29 million) Net Profit for 2019

Kuwait Telecommunications Company achieved these results by implementing assets reached KD 391.1 mn where total
(stc), a subsidiary of stc Group and a world- the digital transformation strategy and shareholders’ equity reached KD 215.4
class digital leader providing innovative offering integrated technology solutions to mn, with a book value of 431 Kuwaiti fils
services and platforms to customers its customers, individuals and enterprises. per share. In addition, stc has a strong
enabling the digital transformation in stc has also driven its business operations financial solvency position, which is
Kuwait, announced its financial results for into new areas of sustainable growth, considered one of the best amongst the
the full year ended on 31 December 2019, through a series of innovative initiatives telecom companies across the Middle
reporting a total revenue of KD 293.7 mn, aimed at improving operational efficiency, East. Meanwhile, stc’s Board of Directors
while company’s net profit reached KD 43.6 improving customer experience, as has recommended distributing cash
mn. Commenting on the announcement of well as delivering the best services and dividends to respective shareholders of 50
these financial results, Eng. Maziad Al Harbi products to meet their customers’ needs. Kuwaiti fils representing 50% of the share’s
– stc’s Chief Executive Officer – stated: Furthermore, and in addition to investing nominal value for the year ended 2019,
“company’s financial results for the year in the advanced 5G infrastructure, the subject to the approval of the Ordinary
ended on 31 December 2019 witnessed company has the largest 5G network with General Assembly of the company”. Al
a growth, were stc managed to achieve 100% coverage of the populated areas at Harbi concluded, “2019 has marked an
revenues of KD 293.7 mn compared to the end of 2019. Moreover, stc’s customer exceptional number of achievements
KD 287.9 mn during the last year, with a base has reached 2.0 mn customers for stc. We have successfully launched
percentage growth of 2%. In 2019, stc’s at the end of December 2019”. Al Harbi our new brand ‘stc’ and the 5G services
EBITDA recorded a growth of 6% to reach a added: “stc’s financial results reflected commercially nationwide. stc has also
KD 82.4 mn compared to KD 77.8 mn for the its capability to compete and enhance its launched the “Let’s go further” campaign
same period in 2018. Meanwhile, EBITDA position as the second greatest telecom which involves introducing company’s
margin reached 28% in 2019 compared to operator in the Kuwaiti Telecom market new concept and strategy of boosting
27% in 2018. As a result, stc achieved a net in terms of its market share of revenue. digital services, offering new innovative
profit of KD 43.6 mn (earnings per share of Due to its secure and stable financial digital solutions and enhanced service
87 fils) in 2019 with a profit margin of 15%. policy, stc continued to implement the cost offerings that go beyond the traditional
These positive results have been achieved optimization program that was adopted by telecom services. This campaign also
despite the continued competition in the company during the previous year in aims to enrich the customer experience,
Kuwait’s Telecommunications sector - order to achieve the best results, which will, create additional communication channels
one of the most competitive markets in in turn, enhance company’s profitability and a dynamic approach that is dedicated
the region - where stc has achieved high through adopting a balanced and effective to catering with customers’ needs. The
levels of revenue in addition to enhancing financial policy in the operational and campaign also highlights implementing
the operational efficiency in order to help capital expenditures. Shedding the light innovative services and products offerings
creating value for its customers and on company’s financial position as of in order to elevate the Company to obtain
better returns for its shareholders. stc has 31 December 2019, company’s total and retain its leading position in the market.
Furthermore, acquiring 100% of the share
capital of Qualitynet – the Internet Service
Provider General Trading and Contracting
Company in Kuwait – is considered one
of the extraordinary achievements of stc
during 2019. In light with the ongoing
changes in the global economic markets,
and the increasing competitiveness in
providing leading services in domestic as
well as regional digital communications
and services, stc has made every effort
to enhance the efficiency of its business
model and operations, adding value to
all stakeholders, including customers,
investors and shareholders. In this regard,
stc has been working on offering a number
of unique as well as innovative products
and services, thus supporting its current
position as a leader in the Kuwaiti Telecom
market”.

26 FEBRUARY 2020