stc announced the company’s preliminary financial results for the period ending on 31 March 2023.
- Revenues for the 1st quarter reached SAR 18,179 million with an increase of 7.45% compared to the corresponding quarter last year.
- Gross Profit for the 1st quarter reached SAR 9,355 million with an increase of 2.24% compared to the corresponding quarter last year.
- Operating Profit for the 1st quarter reached SAR 3,731 million with a decrease of (2.43%) compared to the corresponding quarter last year.
- Earnings before Interest, Taxes, Zakat, Depreciation, and Amortization (EBITDA) for the 1st quarter reached SAR 6,343 million an increase of 0.68% compared to the corresponding quarter last year. Net Profit for the 1st quarter reached SAR 3,109 million with an increase of 2.44% compared to the corresponding quarter last year.
Under the dividends distribution policy for three years period starting from the 4th quarter of 2021, which was ratified during the Ordinary General Assembly Meeting on 30-11-2021. In addition to the amendment to the dividends distribution policy, which was ratified by the Extraordinary General Assembly Meeting on 30-8-2022, by distributing an amount of SAR 0.40 per share per quarter, stc will distribute a total of SAR 1,992.87 million in cash dividends to the shareholders for the 1st quarter of 2023, representing SAR 0.40 per share as the total number of Treasury shares related to the Employees Stock Incentives Plan stood at 17,821,798 shares at the end of the first quarter 2023 and those shares are not entitled to any dividends distribution. The eligibility of dividends shall be for the shareholders at the close of trading on Thursday 18-05-2023 and as per the registered shareholders in stc’s shareholders at the end of the eligibility day. The dividend distribution date will be on Wednesday 07-06-2023.
Corporate Investment Fund
Commenting on these results, Eng. Olyan Mohammed Alwetaid, stc Group CEO, stated that during the first quarter of this year, and in line with the company’s “DARE 2.0” strategy, the Group announced the launch of its Corporate Investment Fund (CIF). The fund aims to invest in early stages startups in various domains including fintech, cybersecurity, artificial intelligence, Internet of Things, and other promising areas. The launch of the fund comes as a reinforcement of the Group’s leadership in the digital and innovation fields, and in support of the Kingdom’s Vision 2030 to diversify the economy by expanding investment in new sectors and supporting entrepreneurs and startups relevant to the Group’s strategy, locally, regionally, and globally.
Read more: Saudi’s stc reports highest-ever 2022 revenue of SAR67 bn
TAWAL
Recently, stc Group announced its entry into the European market through its subsidiary, “TAWAL”, a leading provider in ICT infrastructure. TAWAL has signed an agreement to acquire United Group’s telecommunications tower assets. The agreement, valued at EUR 1.22 billion(around SAR 5 billion), supports stc Group’s ambitious strategy to expand its international footprint. This acquisition represents another significant step for the stc Group in executing its strategy of expansion and growth, following its entry into several promising fields and investments in information technology, Internet of Things, cloud computing, information security, fintech, and digital entertainment, as well as its geographic expansion in Bahrain, Kuwait, and Malaysia through its subsidiaries.
40 agreements
Mr. Alwetaid also pointed out that stc Group, through the global technology conference “LEAP23”, signed more than 40 agreements with major global and local companies, which will support future technologies and contribute to accelerating the digital transformation of the public and private sectors in line with the Group’s strategy and the Kingdom’s Vision 2030.
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