stc Group has announced its financial results for the first quarter of the year. “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,” commented Olayan Mohammed Alwetaid, stc Group CEO.
In a nutshell, here is the financial performance overview of stc Group in Q1 2024:
- Net Profit Surge: stc Group's net profit for Q1 2024 surged by 44.5% compared to the previous quarter and by 5.69% compared to the same quarter last year, reaching SAR 3.2 billion.
- Revenue Growth: Revenues for Q1 2024 increased by 7.76% compared to the previous quarter and by 5.07% compared to the same quarter last year, totaling SAR 19.1 billion.
Key drivers include:
- stc KSA saw a 1.2% increase in revenues, with commercial unit revenues rising by 6.7% and carriers and wholesale unit revenues increasing by 5.7%.
- stc’s subsidiaries' revenues also saw a significant increase of 13.0%.
- Gross Profit Increase: Gross profit for Q1 2024 grew by 5.13% compared to the previous quarter and by 1.65% compared to the same quarter last year, reaching SAR 9.3 billion.
- EBITDA Growth: Earnings before Interest, Taxes, Zakat, Depreciation, and Amortization (EBITDA) for Q1 2024 increased by 16.30% compared to the previous quarter and by 2.07% compared to the same quarter last year, totaling SAR 6.4 billion.
- Dividend Distribution: SAR 0.40 per share dividends will be distributed for Q1 2024, as per the approved dividends distribution policy by the General Assembly.
stc Group, PIF Merger Agreement
Alwetaid noted the ongoing efforts of the Group to bolster growth and enhance shareholder returns, highlighting a significant agreement between stc Group and the Public Investment Fund (PIF). The agreement entails PIF acquiring a 51% stake in the Telecommunications Towers Company (TAWAL), valued at SAR 21.94 billion.
Furthermore, stc Group and PIF agreed to merge TAWAL with the Golden Lattice Investment Company, forming a new merged entity, aiming to become a leading national telecommunications firm. Under this merger, stc Group will hold a 43.06% stake in the newly formed company. This strategic move aligns with stc's expansion strategy, focusing on investments in value-added assets like tower infrastructure companies, which offer substantial growth potential.
Market Leadership
Affirming stc Group's dedication to its "DARE 2.0" strategy, aimed at pioneering digital transformation in the region, the company upholds its market leadership. Recognized as the most valuable telecom brand in the Middle East earlier this year, stc Group continues to forge ahead on innovative paths to growth and advancement.
Fintech Progress
Dedicated to offering banking services and financial solutions compliant with Islamic Sharia principles, stc Bank has received approval from the Saudi Central Bank (SAMA) for the beta launch of its services.
This soft launch marks a significant transition phase before the anticipated full rollout to all customers later this year. stc Bank is prioritizing security and customer protection through advanced Fintech mechanisms. This initiative resonates with the ambitious objectives outlined in the Kingdom’s Vision 2030, which aims to foster a prosperous and diversified economy.
Ramadan Connectivity
The CEO also highlighted stc's accomplishments during Ramadan, noting a record-breaking volume of voice calls at the Holy Mosque of Makkah, with a 35% increase compared to last year. Over 55% of these calls utilized modern digital voice technologies for the first time. Additionally, the implementation of third-generation technologies enabled millions of visitors who attended the Two Holy Mosques to access digital services, resulting in a 37% increase in data volume compared to the previous year. These achievements reflect stc's commitment to enhancing service efficiency and innovation.
5G Advancement and Partnerships
As part of the Group's strategic vision for growth and expansion, stc Group finalized numerous agreements in the first quarter. Notably, during LEAP 2024 and MWC 2024, the Group solidified strategic partnerships and agreements with international firms.
Moreover, in Q1 2024, stc made a significant investment, aiming to advance its 5G capabilities. By introducing 5G-Advanced, a next-generation network, stc is pioneering innovation to deliver unmatched speed, reliability, and versatility.
Also Read: stc Group Achieved Its Highest Revenues Ever in Q3 2023
