Stc Group Achieves Record SAR 56.627 Million Revenue And SAR 11.233 Million Net Profit In 2024

stc Group has reported a significant increase in revenue for the first nine months of 2024, reaching SAR56,627 million. This marks a 3.92% rise compared to the same period last year. The net profit for this period was SAR11,233 million, reflecting an 11.9% growth from the previous year, excluding a one-time gain from selling Al Khobar land in 2023 for SAR1,296 million.

According to the release, stc's subsidiaries experienced an 11% revenue growth, contributing to the group's exceptional performance that surpassed market expectations. The financial results were adjusted due to the General Assembly's approval to sell a 51% stake in TAWAL to the Public Investment Fund. This led to reclassification as discontinued operations in the interim financial statements.

The CEO of stc Group, Olayan Alwetaid, stated: "stc Group is well positioned to continue its growth journey and maintain its leadership as the top digital enabler in the region. These outstanding results are a testament to the effective execution of the group's strategy, which focuses on enhancing investment in infrastructure, growth in new technology sectors, and the activation of its efficiency program."

stc Group has been actively investing in digital infrastructure across Saudi Arabia. Their focus includes advancements in 5G technology, fiber optics, and data centers. The group is also expanding into cloud computing, IoT, and fintech while boosting cybersecurity measures.

The group is strengthening national strategic partnerships with major projects like NEOM, Diriyah, New Murabba, and Red Sea. This aligns with their commitment to supporting national goals and reinforcing their role in the global digital economy.

stc aims to maximise shareholder returns by increasing annual dividends by 37.5%, from SAR1.6 to SAR2.2 per share starting Q4 2024. This decision raises total annual dividends from SAR8 billion to SAR11 billion over three years.

Future Growth Prospects

The release highlighted that this dividend increase reflects stc's robust financial standing and confidence in sustainable cash flows. It also indicates their ability to expand and diversify investments further.

The material capital gain from selling TAWAL will be recognised after regulatory approvals and transaction completion. These developments underscore stc's strategic focus on maintaining leadership as a digital enabler while pursuing growth opportunities.

With inputs from SPA