Page 14 - SAMENA Trends - Jan-Mar 2024

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

stc Group Revenues and Bottom Line for the Year 2023 Reached SAR
72.3bln and SAR 13.3bln

stc announced the annual consolidated financial
results for the year ending at 31st December 2023.
• stc revenues for the year 2023 reached SAR 72,337m with an
increase of 7.3% as compared to 2022. The growth of revenue
was mainly attributed to the increase in commercial unit
revenues by 5.1%, carriers and wholesale unit revenues by 1.4% in
stc KSA, and the subsidiaries revenues also increased by 23.9%.
• Gross Profit for the year 2023 grew by 1.1% as
compared to 2022 reaching to SAR 37,804m.
• Earnings before Interest, Taxes, Zakat, Depreciation and
Amortization (EBITDA) for the year 2023 reached SAR
24,683m with a decrease of (1.6%) as compared to 2022.
• Net Profit for the year 2023 increased by 9.2%
as compared to 2022 reaching to SAR 13,295m.
• stc distributes SAR 0.40 per share for the 4th
quarter of 2023, totaling SAR 1,993.80 million.
• stc Board of Directors recommended a special SAR 1 per
share dividends for the year 2023, totaling SAR 4,984.50m.
The total dividends for the year 2023 (after approving the
special cash dividends by the General Assembly) will be SAR
2.60 per share, which represents 26% of the share’s par value.
Commenting on these results, Eng. Olayan bin Mohammed Al
Wataid, GCEO of stc Group, said: “The group’s strong performance
during 2023 comes, thanks to God Almighty, as a clear outcome of
implementing the group’s strategy in enabling digital transformation
and benefiting from it to enhance stc’s expansion plans. stc
investment plans to deploy the largest 5G network is a clear
illustration of its ability to enhance the digital economy and support
it efforts to elevate the local content. Furthermore and based on
the group’s approach to expanding in size and scope, the group
through its subsidiaries, acquired many companies specialized
in leading digital consulting and innovative solutions, Internet of
Things solutions and technologies, as well as communications and
information technology. During 2023, the Group has maintained its growth, and increasing our shareholders’ value. stc Group will
position as the highest brand in the telecommunications sector in continue to be a pivotal contributor to the national economy and
the Middle East region for the fourth year in a row. The GCEO added: a major enabler of digital transformation across various sectors,
“We will continue our commitment to developing our products and we will continue also to lead the digital transformation
and services to meet our customers’ need, driving sustainable by providing technical solutions with global standards.

stc, Iliad in Frame for Altice Portugal Takeover

Saudi Telecom Company (stc) and Iliad Group reportedly emerged ment and CVC Capital Partners, but have dropped their interest.
as potential suitors for Altice’s Portugal unit, rivalling private equity Altice owner Patrick Drahi is looking to sell the asset in Portugal
company Warburg Pincus to secure a deal for the business which to reduce a debt load which stands at around €60 billion. Finan-
could be worth between €8 billion and €10 billion. Bloomberg re- cial Times reported in December 2023 he was seeking around €6
ported stc and Xavier Niel’s Iliad were invited to the second round billion, but Bloomberg stated this had since risen. A deal with Al-
of bidding for Altice Portugal along with Warburg Pincus, which tice would deepen stc’s presence in Europe, adding to a 9.9 per
is pursuing a deal in partnership with Zeno Partners and Antonio cent stake in Telefonica and a €1.2 billion acquisition of tower
Horta-Osorio, the former chair of banking group Credit Suisse. assets in Bulgaria, Croatia and Slovenia. Altice Portugal oper-
Sources told Bloomberg several other private equity groups also ates fixed-line, mobile and pay-TV services, and jointly owns a
considered a bid for the unit, including Apollo Global Manage- fiber network with Morgan Stanley’s infrastructure business.

14 JANUARY-MARCH 2024