The board of directors at stc Group has recommended a 37.5 percent increase in annual cash dividends, raising them from SAR1.6 to SAR2.2 per share annually. This adjustment is set to elevate the total dividends from SAR8 billion to SAR11 billion ($2.93 billion) over the next three years, as per a statement from stc.
The dividend distribution policy will be presented to stc’s General Assembly at its upcoming meeting, the date of which will be announced later. According to the statement, this recommendation is based on “the group’s robust financial position and exceptional operational performance”, supported by stc’s strategy focused on sustained expansion and growth.
During the first half of 2024, stc Group witnessed a surge in both net profit and revenues. Net profit rose 7.73 percent year-on-year to SAR6.59 billion ($1.76 billion), while revenues increased by 4.79 percent to SAR38.255 billion.
Read more: stc Group records $19.28 billion in revenues for 2023
The group attributes this revenue growth to a 0.6 percent increase in stc KSA’s revenues, driven by a 6 percent surge in the commercial unit’s revenues. stc KSA’s carriers and wholesale unit revenues rose 0.2 percent, while stc’s subsidiaries’ revenues surged by 13.4 percent in H1 2024.
Furthermore, stc Group reported a 3.88 percent annual rise in gross profit during the first six months of 2024, reaching SAR18.957 billion. Meanwhile, earnings before interest, taxes, zakat, depreciation, and amortization (EBITDA) grew by 5.96 percent to SAR12.889 billion. Additionally, the group distributed SAR0.40 per share for the second quarter of 2024, following the approved dividend distribution policy.
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