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Kuwait Telecommunications Company (stc) announced its financial results for the six-month period, which ended 30 June 2020.

stc Kuwait said revenues decreased to KWD 136.4 million, against 139.6 million the year before. The company attributed the decline to the lockdown implemented in Kuwait due to the COVID-19 outbreak, which pulled down revenues from the consumer segment.

There was also a significant decline in revenues derived from roaming services due to the shutdown and suspension of flights in most airports around the world.

EBITDA slid to KWD 35.9 million from 38.6 million while the EBITDA margin fell to 26.3 percent from 27.7 percent. The net profit went to KWD 15.9 million with a profit margin of 12 percent while earnings per share amounted to KWD 0.32.

The company ended the first half with 1.72 million subscribers, enhancing its position as the second largest telecom operator in Kuwait with a market share of 35 percent in terms of revenues.

stc’s CEO, Engineer Maziad Alharbi, stated: Despite the negative consequences associated with the COVID-19 outbreak, which had an adverse impact on businesses and vital sectors in general, stc was able to achieve these results through adopting a flexible operating model, implementing its digital transformation strategy and offering integrated advanced solutions that support the Kuwaiti government’s social distancing requirements for both individuals and corporates.”

Commenting on these financial results, Alharbi stated: “stc’s financial results for the first six-month period of 2020 demonstrated the company’s ability to compete and enhance its position as the second largest telecom operator in the Kuwaiti telecom market with a revenue market share of 35%.”

“With the ongoing repercussions and challenges we are facing due to the COVID-19 crisis, we, at stc, are implementing a cost optimization program in order to achieve the best results and enhance profitability through adopting a balanced and effective financial policy in relation to the operational and capital expenditure.”

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