stc Group achieves record-breaking revenues of SAR54.61 bn

An increase of 9.10 percent compared to September 2022
stc Group achieves record-breaking revenues of SAR54.61 bn
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stc has released its preliminary financial results for the period ending on September 30, 2023. Here are the key highlights:

  • Revenues for the 9-month period of 2023 amounted to SAR54,612 million. This figure reflects a 9.10 percent increase compared to the same period last year.
  • Gross Profit for the 9-month period of 2023 reached SAR28,875 million. This represents a 1.80 percent increase compared to the comparable period last year.
  • Earnings before Interest, Taxes, Zakat, Depreciation, and Amortization (EBITDA) for the 9-month period of 2023 amounted to SAR19,116 million. This figure represents a decrease of 2.35 percent compared to the comparable period last year.
  • Net Profit for the 9-month period of 2023 reached SAR11,021 million. This indicates a notable increase of 17.08 percent compared to the comparable period last year.

Cash dividends distribution

According to the dividends distribution policy, it was approved during the Ordinary General Assembly Meeting on November 30, 2021. An amendment was later ratified during the Extraordinary General Assembly Meeting on August 30, 2022. As per the policy, stc will be distributing SAR0.40 per share per quarter. For the 3rd quarter of 2023, a total of SAR1,993.80 million in cash dividends will be distributed to the shareholders. It’s important to note that the total number of Treasury shares related to the Employees Stock Incentives Plan is 15,493,743 shares. These shares are not eligible for any dividends distribution.

Read more: Charting new horizons: stc group’s biggest-ever 5G network expansion plan unveiled

To be eligible for dividends, shareholders must hold shares at the end of trading on Sunday, November 5, 2023. The holding must be recorded in stc’s shareholders registry at the Depository Center. This should be done by the end of the second trading day following the eligibility date. The distribution of dividends will take place on Thursday, November 23, 2023.

Outstanding performance

Eng. Olayan Alwetaid, the CEO of stc Group, commented on the results. He stated that the group’s performance for both the three-month and nine-month periods was outstanding. Additionally, he mentioned that the performance met their expectations. These achievements were attributed to the group’s dedication to their “Dare 2.0” strategy, as well as their operational and financial plans. Additionally, during the third quarter of this year, the stc group made an acquisition. The acquisition involved a 9.9 percent stake in Telefonica Group. The deal was highlighted by the group CEO, and it amounted to SAR8.5 billion.

Sustainable growth strategy

Telefonica, a major telecom company in Spain, Germany, Britain, and Brazil, is a leading player in the industry. In line with their ambitious expansion and sustainable growth strategy, stc Group has made an investment in Telefonica. The purpose of this investment is to enhance collaboration between the two companies and leverage future opportunities. The stc Group has consistently demonstrated its commitment to the ICT sector through various local and international investments. stc Group’s subsidiary “Tawal” recently acquired United Group’s towers in Bulgaria, Croatia, and Slovenia, marking a notable achievement. This acquisition has been successfully completed, marking the official commencement of operations in these regions.

Embracing cutting-edge digital technologies

As part of the group’s commitment to driving digital transformation, “iot Squared,” a subsidiary of stc Group, has made an agreement. The agreement involves the acquisition of “Machinestalk,” a prominent Saudi company specialized in the Internet of Things (IoT). The acquisition is a binding agreement. This acquisition is a significant step for the group. It further strengthens their leading position in embracing cutting-edge digital technologies. Additionally, it allows them to spearhead digital transformation in the region. It enables stc Group to meet the increasing demand for IoT technologies and expand the provision of comprehensive services and products in this promising market. The acquisition solidifies the group’s role as a pioneer in the adoption of advanced digital solutions and reinforces its commitment to driving innovation in the field of IoT.

Impressive milestone

In line with the group’s vision to lead the digital landscape in the Kingdom, the group’s subsidiary, “sirar by stc,” has achieved an impressive milestone. It has secured the first position in the Middle East and North Africa region and the eleventh position globally among the top 250 cybersecurity service providers according to the renowned “MSSP Alert” list. This ranking was based on extensive research conducted by the esteemed “CyberRisk Alliance.” Since its establishment in early 2021, sirar by stc has been dedicated to fortifying its position through fruitful partnerships, having collaborated with over 100 partners from diverse sectors. This recognition serves as a testament to the company’s remarkable growth and underscores its unwavering commitment to delivering cybersecurity services that adhere to the highest global standards.

Enhancing communication efficiency

Additionally, the stc group has recently entered into a memorandum of understanding (MoU) and agreement with Roshn group, a reknown real estate developer and a significant project of the Public Investment Fund (PIF). The MoU encompasses the deployment of 5G network towers, implementation of smart homes and cities solutions, as well as the utilization of Big Data and Internet of Things (IoT) technologies. These initiatives aim to enhance communication efficiency and elevate the quality of life for both residents and visitors of Roshn’s communities.

Strategic move

The partnership agreement between stc and Roshn is a strategic move aligned with the group’s vision to establish digitally enabled capabilities in new regions and projects across the Kingdom. This entails creating a modern digital infrastructure and offering cutting-edge digital solutions and innovative services that enhance the well-being of society. The integration of smart city technologies and applications within Roshn’s projects will significantly elevate the quality of life, in line with the objectives of Vision 2030. This vision aims to build a digital society, foster a thriving digital economy, and pave the way for a prosperous future for the Kingdom.

Continuous development

Moreover, stc group is committed to ongoing growth, achievement, and leadership in the digital and communications industry. They achieve this by engaging in local, regional, and global investments, partnerships, and agreements within the communications and information technology sectors. These endeavors are in alignment with the pillars of their “DARE 2.0” strategy. By implementing this strategy, stc aims to contribute to the realization of the goals set forth by Saudi Vision 2030 and actively participate in the digital transformation. Their influence extends not only within the Kingdom of Saudi Arabia but also across the Middle East and the global stage, as they strive to make a significant impact in these regions and beyond.

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