stc Group, a prominent digital enabler, has announced its financial results for the first nine months of 2024, reporting a revenue increase of SAR2,138 million ($567 million), bringing total revenues to SAR56,627 million (SAR56.6 billion or $15 billion)—reflecting a growth of 3.92 percent compared to the same period last year.
Profit performance
During this timeframe, the net profit reached SAR11,233 million ($2.98 billion), marking an 11.9 percent rise over the previous year’s figures, excluding a one-time gain from the sale of Al Khobar land for SAR1,296 million ($521.79 million) in the third quarter of 2023.
Revenue growth and market impact
The report highlights that revenues from stc subsidiaries grew by 11 percent, contributing significantly to the group’s record-breaking performance, which surpassed market analysts’ expectations. Additionally, following the stc Group General Assembly’s approval to sell a 51 percent stake in the Telecommunication Towers Company (TAWAL) to the Public Investment Fund, the comparative figures for prior periods have been reclassified as discontinued operations in the interim condensed consolidated financial statements as of September 30, 2024. The substantial capital gain from this sale will be recognized once the necessary regulatory approvals are obtained and transaction procedures are completed.
Focus on infrastructure
Olayan Alwetaid, CEO of stc Group, remarked that the group is strategically positioned to continue its growth trajectory and uphold its leadership as the premier digital enabler in the region. He noted that these exceptional results reflect the effective implementation of their strategy, which emphasizes investment in infrastructure, expansion into new technology sectors, and the activation of their efficiency program.
Commitment to digital transformation
stc Group remains committed to driving digital transformation across various critical sectors in Saudi Arabia through substantial investments in digital infrastructure, including 5G, fiber optics, and data centers. The group is also investing in cutting-edge technologies such as cloud computing, IoT, and fintech while enhancing its cybersecurity capabilities.
Strengthening national partnerships
Moreover, stc is strengthening its national strategic partnerships with major projects within the Kingdom, including NEOM, Diriyah, New Murabba, and the Red Sea. The report elaborated that this underscores their commitment to achieving national objectives and reinforces their role as a pivotal player in the global digital economy.
Shareholder return initiatives
The group is also focused on maximizing total shareholder returns, as evidenced by the Board of Directors’ endorsement on August 24 of a 37.5 percent increase in the annual dividend, raising it from SAR1.6 to SAR2.2 per share, effective from Q4 2024. This adjustment will elevate the total annual dividend from SAR8 billion to SAR11 billion over the next three years, reflecting the group’s robust financial position and confidence in sustainable operating cash flows, as well as its capacity to continue expanding and diversifying investments.
In October 2024, stc Group announced a strategic partnership with the Future Investment Initiative Institute (FII) ahead of the recently concluded 8th annual conference in Riyadh.
Sustainability Champions program
During the same month, stc Group introduced three companies that are joining its Sustainability Champions program at the 8th Edition of FII in Riyadh. The group further emphasized its commitment to sustainability, connectivity, and technological progress at the event, themed ‘Infinite Horizons: Investing Today, Shaping Tomorrow’:
- Alat: A subsidiary of the Public Investment Fund (PIF), Alat aims to transform global industries, particularly in electronics and industrial sectors, by establishing a leading manufacturing hub in Saudi Arabia. The company utilizes clean energy to foster sustainability, innovation, and industrial growth.
- Dr. Sulaiman Al Habib Medical Group: The largest private healthcare provider in the Middle East, offering a comprehensive range of healthcare services, pharmacy operations, and technological solutions. The group manages over 2,000 beds across more than 25 medical facilities in Saudi Arabia and the UAE.
- solutions by stc: A leader in information technology services within the Kingdom, providing a wide array of integrated technology solutions to facilitate digital transformation for both public and private sectors. The company delivers essential ICT services to help businesses effectively manage and grow their operations.
Infrastructure development in Diriyah
stc Group has also partnered with Diriyah Company to develop a neutral digital infrastructure for the second phase of the Diriyah project. This collaboration will allow stc Group to design, build, and operate a neutral host infrastructure, ensuring seamless wireless coverage throughout this culturally significant Saudi hub, irrespective of the service provider.
Venture capital success
Additionally, tali ventures, the corporate venture capital arm of stc Group, in collaboration with NorthLadder, a prominent device trade-in platform operating in over 10 countries, has successfully completed a $10 million Series B funding round.
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