Saudi Telecom Company (stc) announced robust financial results for the fiscal year 2023, with revenues reaching SAR 72.3 billion and a net profit of SAR 13.3 billion. The company saw a notable increase in both revenue and profitability, with a 7.3% and 9.2% rise, respectively, compared to the previous year.
The growth in revenue was primarily driven by a 5.1% increase in commercial unit revenues, a 1.4% rise in carriers and wholesale unit revenues within stc KSA, and a substantial 23.9% increase in subsidiary revenues.
Gross profit for the year experienced a modest uptick, reaching SAR 37.8 billion, reflecting a 1.1% increase over 2022 figures. However, Earnings before Interest, Taxes, Zakat, Depreciation, and Amortization (EBITDA) witnessed a slight decrease of 1.6%, totaling SAR 24.7 billion for the year.
Net profit showed significant growth, rising by 9.2% compared to 2022, reaching SAR 13.3 billion. As a testament to its financial strength, stc declared SAR 0.40 per share dividends for the fourth quarter of 2023, amounting to SAR 1.99 billion.
Additionally, the stc Board of Directors proposed a special SAR 1 per share dividends for the year 2023, totaling SAR 4.98 billion. With the approval of these special cash dividends by the General Assembly, the total dividends for the year 2023 will stand at SAR 2.60 per share, representing 26% of the share’s par value.
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 position as the highest brand in the telecommunications sector in the Middle East region for the fourth year in a row.
Eng. Olayan bin Mohammed Al Wataid, GCEO, stc Group
We will continue our commitment to developing our products and services to meet our customers’ need, driving sustainable growth, and increasing our shareholders’ value. stc Group will continue to be a pivotal contributor to the national economy and a major enabler of digital transformation across various sectors, and we will continue also to lead the digital transformation by providing technical solutions with global standards.
