stc Group’s First Quarter 2024 Net Profit Surges by 44.5%

stc Group net profit for the first quarter of 2024 increased by 44.5% as compared to the previous quarter, and by 5.69% as compared to the comparable quarter of last year, and it distributes SAR 0.40 per share dividends for the 1st quarter of 2024.

Revenues for the 1st quarter of 2024 increased by 7.76% as compared to the previous quarter, and increased by 5.07% as compared to the comparable quarter last year reaching to SAR 19,100 million. The growth of revenues was mainly attributed to the increase in stc KSA’s revenues by 1.2% driven by an increase in commercial unit revenues by 6.7%, carriers and wholesale unit revenues by 5.7%, which offset the decline in business unit revenues. Furthermore, stc’s subsidiaries revenues also increased by 13.0%.

Gross Profit for the 1st quarter of 2024 grew by 5.13% as compared to the previous quarter, and by 1.65% as compared to the comparable quarter last year reaching to SAR 9,386 million.

Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the 1st quarter of 2024 increased by 16.30% as compared to the previous quarter, and by 2.07% as compared to the comparable quarter last year reaching to SAR 6,474 million.

Net Profit for the 1st quarter of 2024  increased by 44.50% as compared to the previous quarter, and by 5.69% as compared to the comparable quarter last year reaching to SAR 3,286 million.

stc distributes SAR 0.40 per share for the 1st quarter of 2024, in accordance with the dividends distribution policy approved by General Assembly.

GCEO Statement

Commenting on the financial results, Olayan Mohammed Alwetaid, stc Group CEO, indicated that as part of the Group’s ongoing efforts to achieve growth and increase shareholder returns, stc Group and the Public Investment Fund (PIF) announced the signing of final agreements through which PIF will acquire a 51% stake in the Telecommunications Towers Company (TAWAL). Under this deal, TAWAL was valued at a total value of SAR 21.94 billion. It was agreed between stc Group and PIF to merge the two companies, TAWAL and Golden Lattice Investment Company, into a new merged entity to create a leading national company in the telecommunications sector, which includes the assets of TAWAL and Golden Lattice Investment Company, and stc Group will own a 43.06% share of the new merged entity. This deal comes in line with stc’s strategy of growth and expansion by maintaining shares in value-added assets, such as tower infrastructure companies, which have strong potential for expansion and growth.

In confirmation of stc Group’s commitment to its “DARE 2.0” strategy to grow in new, unconventional paths and lead digital transformation in the region, stc Group maintains its market leadership, having been acknowledged as the most valuable telecom brand in the Middle East at the start of the year. Also stc Bank, the Group’s subsidiary, has obtained the approval of the Saudi Central Bank (SAMA) for the beta launch of stc Bank. This soft launch also represents an important transitional phase before the full launch to all customers, which is expected to be later this year. The bank aims to provide banking services and financial solutions compatible with Islamic Sharia, while ensuring the highest levels of security and customer protection through the use of advanced Fintech. This comes in line with the ambitious goals of the Kingdom’s Vision 2030 towards a prosperous diversified economy.

In continuation of stc’s achievements, the Group CEO added that during the holy month of Ramadan, stc’s network recorded the highest volume of voice calls in the history of the Holy Mosque of Makkah, with an increase of 35% compared to last year, and more than 55% of them were passed for the first time through modern digital voice technologies. This year also witnessed, for the first time, the dispense of third-generation technologies, and the enablement of millions of visitors to the Two Holy Mosques to connect to the world digitally through quality services that set a new record, with a 37% increase in data volume compared to last year. These achievements are a result of the Group’s keenness to develop, constantly improve, and raise the efficiency of its services.

As an extension of the Group’s strategy and ambitious plans for growth and expansion, stc Group concluded many agreements during the first quarter, in LEAP 2024 conference, the Group concluded many strategic partnerships and agreements with international companies, including Huawei, Ericsson, and Samsung, as all of these partnerships aim to enhance innovation and accelerate the pace of digital transformation in the region. The Group’s subsidiary, solutions, also signed a memorandum of understanding with the French Devoteam Group, with the aim of cooperating in researching and exploring regional and global investment opportunities in the field of information technology. This came after the completion of solutions’ acquisition of a 40% stake in Devoteam Middle East.

In conclusion, we are proud of the achievements, contributions and initiatives that the Group has undertaken to this day, and we are determined to be committed to being a vital tributary to the national economy, and a major enabler of digital transformation in various fields and sectors.