stc Reports a 7.45% Increase in Revenue in Q1 2023

stc’s first quarter of 2023 results has seen their revenue increase during the time by 7.45% compared to the same quarter last year.

stc has announced its financial results for the first quarter of 2023.

Highlights of the same are as follows:

  • Revenues increased during the first quarter by 7.45% compared to the same quarter of the previous year, reaching SAR 18,179 million.
  • Gross profit increased during the first quarter by 2.24% compared to the same quarter of the previous year, to reach 9,355 million Saudi riyals.
  • Operating profit decreased during the first quarter by 2.43% compared to the same quarter of the previous year, to reach SAR 3,731 million.
  • Earnings before depreciation, amortization, interest, zakat and taxes (EBITDA) increased during the first quarter by 0.68% compared to the same quarter of the previous year, reaching SAR 6,343 million.
  • Net profit increased during the first quarter by 2.44% compared to the same quarter of the previous year, to reach 3,109 million Saudi riyals.

Commenting on these results, Eng. Olayan bin Muhammad Al-Wateed, CEO of stc Group, indicated that during the first quarter of this year, and in line with the group’s strategy of “Dare 0.2”, the group launched a daring investment fund (stc Institutional Investment Fund), which focuses on investing in emerging projects in Technical and digital fields, which are in their initial stages, and include investment in financial technologies, cybersecurity, artificial intelligence, the Internet of Things, and many other promising fields. The launch of the fund comes to enhance the group’s leadership in the digital field and innovation, and to support the Kingdom’s Vision 2030 to diversify the economy by expanding investment in new sectors and supporting entrepreneurs and emerging projects related to the group’s strategy locally, regionally and globally.

These results are a continuation of the successes achieved by the group as an enabler of digital transformation in the region, since the launch of its comprehensive strategy “Dare 0.2”, which seeks to diversify investment opportunities in the field of technology and communications and maximize economic impact through expansion and growth, as the group worked on many initiatives and projects that It had a clear impact on increasing and diversifying the group’s revenues in the areas of cloud computing, the Internet of Things and digital infrastructure. The group’s ambitious strategy is in line with the Kingdom’s Vision 2030, which seeks to strengthen the Kingdom’s position as a major digital hub connecting the world digitally. These results will also support the group’s profitability and sustainable growth.

Eng. Olayan bin Muhammad Al-Wateed, CEO, stc Group

The head of the group also confirmed that the partnerships held by the group had an impact on enhancing the financial results of the group, as the group signed an agreement with the “Sharik” program (the Center for the Enhancement of Partnership Program with the Private Sector), to enhance the Kingdom’s position as a digital center and a reliable destination for data traffic in the region. In addition to the signing of an agreement with the Ministry of Investment in the field of the EMC submarine cable project, and the entry of stc into the European market through the signing of the “Tawaal” company, specialized in the field of communications and information technology infrastructure, an agreement to acquire the assets of the communications towers of the United Group, with a total value of $1.22. One billion euros, equivalent to approximately five billion riyals, which contributes to strengthening the group’s role as an arm that connects the world through technology. These are important steps towards expansion at the local and global levels, and give broader investment prospects.”

The CEO of the group explained that the reasons for the decrease in operating profit for the first quarter of this year are mainly due to the investments made by the group aimed at expansion and growth in several areas, which were previously announced.

And in line with the dividend distribution policy for a period of three years, which started from the fourth quarter of 2021 AD, which was approved during the Ordinary General Assembly meeting on 11-30-2021 AD. In addition to the amendment to the dividend policy, which was approved at the Extraordinary General Assembly on 8-30-2022 AD, by distributing 0.40 Saudi riyals per share for each quarter, stc will distribute cash dividends amounting to 1,992.87 million Saudi riyals to shareholders for the quarter. The first of the year 2023 AD, equivalent to 0.40 Saudi riyals per share, as the total number of non-dividend treasury shares allocated to the employee incentive shares program reached 17,821,798 shares until the end of the first quarter of 2023 AD. The eligibility for dividends will be for shareholders who own shares at the end of trading on Thursday 10-28-1444 AH corresponding to 05-18-2023 AD and who are registered in the stc shareholder register at the end of the eligibility day. The distribution date will be on Wednesday 11-18-1444 AH corresponding to 06-07-2023 AD.

It is noteworthy that the group allocated $300 million as an additional investment to the $500 million previously invested in the STV Fund, which is the largest independent technology investment company in the Middle East and North Africa region. stc’s capital increase during the year 2022 AD to 50 billion Saudi riyals contributed to achieving its strategy aimed at expansion and growth and increasing the total return for shareholders through diversifying investments and seizing the expected growth opportunities in the communications and information technology sectors in the Kingdom and the region, which achieves the vision of the group and its contribution to the endeavors Digital transformation in the Kingdom of Saudi Arabia and abroad, as it reflects the group’s direction to support and invest in innovative projects in the digital economy.

Solutions (one of the group’s subsidiaries) also completed its acquisition of the leading call center company “ccc” in the field of business outsourcing in the Kingdom by 100%, and the acquisition deal was completed at a value of 450 million riyals. Solutions aims through this acquisition to enhance the sustainability of its growth and leadership in the field of communications and information technology in the Kingdom. This is Solutions’ second acquisition after its acquisition of Giza Systems last year.

In continuation of its leadership, stc Group succeeded in maintaining the first rank as the most valuable brand in the telecom sector in the Middle East, for the third year in a row, according to the “Brand Finance Global 500” classification of the most powerful brands in the world. As the value of the group’s brand has doubled over the past five years, and has increased from $6.2 billion in 2017 to $12.3 billion in 2022, by focusing on performance and continuing to grow and expand to maintain its leadership position and enhance the strength of its brand in the Kingdom and the Middle East.

Finally, stc Group is continuing to achieve its ambitious strategy (Dare 2.0) and seeks to continue working to enable digital transformation in various sectors and industries and growth in new paths. The group’s diversified investments also represent its commitment to this strategy and its aspiration to create an integrated digital system to enrich the experience of our customers and contribute to achieving the goals of Vision 2030

More News