STC Reports Robust Q1 2024 Financial Growth And Embarks On Strategic Expansions

In a recent announcement that underscores the robust growth and strategic expansion within the telecommunications sector, stc has reported a significant increase in its financial metrics for the first quarter of 2024. The company's revenues saw a 7.76% rise compared to the previous quarter and a 5.07% increase from the same period last year, reaching SAR19,100 million. This growth is primarily attributed to a 1.2% increase in stc KSA’s revenues, driven by a 6.7% rise in commercial unit revenues and a 5.7% increase in carriers and wholesale unit revenues, which more than compensated for the decline in business unit revenues. Additionally, stc’s subsidiaries experienced a revenue increase of 13.0%.Gross Profit for the first quarter also grew by 5.13% from the previous quarter and by 1.65% from the same quarter last year, amounting to SAR9,386 million. The Earnings before Interest, Taxes, Zakat, Depreciation, and Amortization (EBITDA) for this period saw a notable increase of 16.30% compared to the previous quarter and a 2.07% rise compared to the same period last year, reaching SAR6,474 million. Moreover, Net Profit for the first quarter of 2024 surged by 44.50% from the previous quarter and by 5.69% from the comparable quarter last year, totaling SAR3,286 million.In line with its dividend distribution policy approved by the General Assembly, stc has announced a dividend of SAR0.40 per share for the first quarter of 2024.A significant development highlighted in this period is stc Group's strategic partnership with the Public Investment Fund (PIF), through which PIF will acquire a 51% stake in the Telecommunications Towers Company (TAWAL), valuing TAWAL at SAR21.94 billion. This move is part of a broader strategy to merge TAWAL with Golden Lattice Investment Company into a new entity that aims to create a leading national company in the telecommunications sector. stc Group will retain a 43.06% share in this newly merged entity.This strategic maneuver aligns with stc's growth and expansion strategy by maintaining shares in value-added assets like tower infrastructure companies that exhibit strong potential for expansion and growth.Another noteworthy development is stc Bank's beta launch approval by the Saudi Central Bank (SAMA). This preliminary phase marks an important step towards the full launch expected later this year. stc Bank aims to offer banking services and financial solutions that are compatible with Islamic Sharia, emphasizing security and customer protection through advanced Fintech solutions.During Ramadan, stc’s network recorded an unprecedented volume of voice calls at the Holy Mosque of Makkah, marking a 35% increase from last year. For the first time, over 55% of these calls utilized modern digital voice technologies. This period also saw the discontinuation of third-generation technologies and enabled millions of visitors to the Two Holy Mosques to connect digitally with quality services that achieved a record 37% increase in data volume compared to last year.Furthermore, at LEAP 2024 conference, stc Group concluded several strategic partnerships and agreements with leading international companies such as Huawei, Ericsson, and Samsung to enhance innovation and accelerate digital transformation in the region. Additionally, solutions, an stc Group subsidiary, signed a memorandum of understanding with French Devoteam Group to explore regional and global investment opportunities in information technology following solutions’ acquisition of a 40% stake in Devoteam Middle East.These developments underscore stc's commitment to driving growth, enhancing shareholder returns, and supporting Saudi Arabia's Vision 2030 towards a diversified and prosperous economy through strategic investments and innovation in telecommunications and digital services.

With inputs from SPA