STC recorded highest ever quarterly revenues – Al-Ahli Capital

Saudi Telecom Co (STC) reported a surge of 5.7% (yoy)/ 2.2% (qoq) to SR 16.09 billion in q4 2021, which is considered the largest ever quarterly revenues, Al-Ahli capital reported.

Analysts at Al-Ahli Capital said that the STC revenues are a little lower than its estimates of SR 16.16 billion.

It added that STC reported a net income rise of 0.8% to SR 2.61 billion in 2021 (-10.6% qoq) which is in line with Al-Ahli capital’s and consensus estimates at SR 2.88 billion and SR 2.82 billion respectively.

Al-Ahli Capital maintained its “Neutral” recommendation on the stock setting the price target at SR 117.7, saying that revenue growth is the most important positive sides of STC financial results in Q4 2021.

The brokerage stressed on positive impacts of “STC Pay” on the stock moves in the future, adding that annual rise of STC revenues was spurred by healthy growth in all sectors, and that the STC 2021 revenues were higher than what Zain and Mobily announced during the same period.