stc has revealed its annual consolidated financial results for the year ending December 31, 2024, showcasing strong growth across key financial metrics. Revenues for the year 2024 reached SAR75,893 million ($20.2 billion), marking an increase of 5.7 percent compared to 2023. Gross profit for the year 2024 reached SAR37,300 million ($10 billion), reflecting an increase of 7.4 percent from 2023. Net profit for the year 2024 reached SAR24,689 million ($6.6 billion), with a remarkable increase of 85.7 percent compared to 2023.
Additionally, stc announced a distribution of SAR0.55 per share for the fourth quarter of 2024, consistent with the dividend distribution policy approved by the General Assembly, alongside an extra cash dividend of SAR2 per share.
Operating profit for the year 2024 reached SAR14,426 million, showing a rise of 9.6 percent over 2023. Earnings before interest, taxes, zakat, depreciation, and amortization (EBITDA) for the year 2024 reached SAR23,926 million, an increase of 6.6 percent from 2023.
In commenting on these results, Eng. Olayan Alwetaid, CEO of stc Group, commended the Group’s exceptional performance and financial achievements throughout the year. He noted the contributions of its subsidiaries, which attained 16 percent growth, as well as the implementation of a cost efficiency program that significantly enhanced financial performance. The Group plans to continue integrating this approach into its culture.
Strategic focus on innovation
The Group CEO further highlighted that these results are indicative of the successful execution of the Group’s strategy and the attainment of its financial and operational objectives. Moreover, stc’s emphasis on fostering innovation and improving customer experience has been crucial in propelling sustainable growth, which contributed to the impressive performance in 2024. The Group achieved revenue growth of 5.7 percent, an operating profit increase of 9.6 percent, and a bottom line that surged by 85.7 percent. Notably, when excluding one-off items, the Group recorded a net profit growth of 13 percent.
Significant strategic initiatives
Eng. Alwetaid pointed out that stc has effectively undertaken several strategic initiatives. The Group signed a landmark contract valued at SAR32.64 billion to construct, operate, and provide telecommunications infrastructure services for a government entity. Additionally, stc launched its digital bank after receiving approval from the Saudi Central Bank, marking a pivotal development in offering innovative financial solutions to support individuals and businesses while advancing the digitization of the financial sector. stc also completed all procedures to sell 51 percent of its stake in TAWAL to the Public Investment Fund (PIF) after acquiring the necessary approvals. This initiative aligns with the efforts of the Group and PIF to create a leading company in the construction and operation of telecommunications and IT infrastructure globally through the merger of TAWAL with PIF’s subsidiary, Golden Lattice Investment.
On the international stage, stc received approval from the Spanish Council of Ministers to increase its voting rights in Telefónica from 4.97 percent to 9.97 percent, along with the right to appoint a member to the company’s Board of Directors. This investment is integral to the Group’s growth and expansion strategy, focusing on strategic investments that deliver added value.
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Commitment to investor returns
Following the impressive financial results achieved by the Group, the Group CEO announced that stc’s Board of Directors has recommended additional cash dividends for the fiscal year 2024, amounting to SAR2 per share, equivalent to SAR10 billion. This is in addition to the approved distribution under the company’s policy, which was activated from the fourth quarter of 2024. Consequently, the total cash distributions for the year 2024 amount to SAR3.75 per share, reflecting the Group’s commitment to maximizing and enhancing investor returns.
Partnerships in digital infrastructure
Eng. Alwetaid emphasized that stc’s strategic emphasis on innovation and excellence in digital infrastructure has been realized through a series of partnerships. This includes a strategic collaboration with Diriyah Company, where stc will design, build, and operate neutral infrastructure for the second phase of the Diriyah project. Furthermore, the Group signed a strategic partnership with New Murabba, aiming to enhance and facilitate the implementation of advanced communications and information technology at New Murabba, capitalizing on the innovative digital solutions provided by the Group. These partnerships reinforce the Group’s commitment to advancing digital and technological transformation in significant projects throughout the Kingdom and its position as a leading enabler of digital transformation in the region.
Achievements in brand value and local content
In conclusion, building on the Group’s achievements in 2024, stc maintained its status as the most valuable telecom brand in the Middle East for the fifth consecutive year. It also advanced to become the ninth most valuable telecom brand globally, with the Group’s brand value rising by 16 percent to SAR60.4 billion in 2024, as reported by ‘Brand Finance.’ This further underscores stc’s leadership on a global scale and its crucial role in the digital economy. Additionally, stc achieved substantial growth in its local content percentage, reaching 44.32 percent in 2024, with total spending on local content exceeding SAR16 billion. This accomplishment highlights stc’s dedication to contributing to the development of the local ICT sector and fostering sustainable economic growth.
