STC’s Net Income for the year 2017 increased by 14.3% compared to last year
• Consolidated Revenues for the year reached SR 51,362m, a decrease of 4.3% compared to last year
• Gross Profit for the year reached to SR 29,555 an increase of 3.0% compared to last year
• Operating Profit for the year reached to SR 11,104 an increase of 11.6% compared to last year
• Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the year reached to SR 19,311 an increase of 7.1% compared to last year
• Net Profit for the year reached to SR 10,174 an increase of 14.3% compared to last year
1. In accordance with the approved dividend policy for three years starting from the 4th quarter 2015 which was announced on 11 November 2015, and have been ratified during the General Assembly Meeting on April 4th 2016, STC will distribute a total of SR 2,000 million in cash dividend for Q4 2017, representing SR 1 per share. The eligibility of dividends shall be for the shareholders registered in the register of the Securities Depositary Center (TADAWUL) at the end of the 2nd trading day after the day of Annual General Meeting, which will be announced later. Furthermore, details of Dividend distribution date will be announced later.
Commenting on the results, STC Group CEO, Dr. Khaled H. Biyari, stated: "The results of the 4th quarter of 2017 were good given the successful cost optimization initiatives and for the shift in the Company’s strategy with a clear focus towards digitization. The company has been investing in the areas of technology and digitization and it expects this positive business momentum to continue”.
Continuing with his commentary on the company’s strategy, Dr. Biyari elaborated; “STC's transition to its new strategy that focuses on growth and digitization would bolster the company's leadership position in delivering the best digital solutions to the Saudi market while aspiring to become the world-class digital leader in the MENA region”. Dr. Biyari commented that “STC’s strategy will support the vision 2030 of the Kingdom and the National Transition Program 2020 by introducing and investing in latest technology (with focus on cyber security, cloud computing, Internet of things, etc.), local & smart content development and job creation. STC also aims to keep investing in advanced and robust networks”.
The 2017 year-end Revenue from Services has decreased by (4.3%) for 12 months period compared to the comparable period last year. This is mainly attributable to the decline in consumer sector performance due to challenging economic conditions and regulatory environment, for example lifting the ban on VOIP that significantly affected the international calls revenue. However, the impact of voice decline on overall Group’s revenue was significantly offset by the strong growth of data revenue. Furthermore, FTTH customer base in Q4 2017 increased by 5.1% and 20% as compared to Q3 2017 and Q4 2016 respectively. In addition, the company's strategy of diversifying sources of income also resulted in significant growth during the period in Enterprise and Wholesales sectors revenues which contributed positively to the performance of the company. Also, International operations mainly the controlled international subsidiaries also contributed positively.
The 2017 year-end Net Profit has increased by 14.3% for 12 months period compared to the comparable period last year. The increase in net profit is attributable to the improved operational efficiency and successful cost optimization initiatives.
In his commentary on the performance of the company, Dr. Biyari also touched on STC’s initiative to expand and diversify its overall business profile by exploiting its strong balance sheet and healthy assets base. He explained that STC has progressed well in this direction and has taken various key initiatives such as setting up of a technology venture fund (STV) and rebranding and re-strategizing the retail operations under STC Channels. STC has also launched the new identity of for its specialized communication services under the name of STC Specialized (STCS), formerly called “Bravo”. This is an important step towards achieving STC's goals and future vision of building a unified national network for specialized communications, emergency and crisis management (Critical-Mission network).
Jan 25, 2018 12:00:00 AM Asia/RiyadhSTC Reveals Health Care and Asset Management Solutions in IOT Conference
Saudi Telecom Company (STC), represented by Enterprise Business Unit, reveals the latest solutions and services of Internet of Things that the company presents, during the “Saudi International Exhibition & Conference for Internet of Things", which will be launched tomorrow in Riyadh. STC will show its services as well in smart cities platforms, health care solutions, transportation solutions, asset management and many innovative solutions.
STC Participates as a strategic sponsor, in addition to its specialised booth about the latest technologies of IOT, while some executives participate with speeches and work papers during the conference days from 28-30 January.
On this occasion, Dr. Tariq Enaya, Enterprise Senior Vice President at STC, confirmed that what the company presents in this conference reflects a part of its digitization strategy in line with its active role to achieve the objectives of the Kingdom`s vision 2030 as a key provider of digital services to the Public/Private sectors. Stating that a number of STC Speakers will express their visions about the relation between IOT and the Kingdom`s vision 2030, Investment trends in IOT, enriching the debate on how IOT influence our lives and future, in addition to highlighting cybersecurity challenges.
The expected attendees to the conference reach 15K expert from around the world. It will hold a large technical exhibition with more than 90 exhibitors, representing the major companies of telecommunications, technology, networking, smart applications, energy, transportation and health solutions, that keep pace with the social changes associated with technical transformation and the concept of IOT, as well as simulating the next generation of Saudis.
Jan 25, 2018 12:00:00 AM Asia/RiyadhSTC announces collaboration with Nokia for a 5G network Launch in 2018
STC and Nokia have announced today that they are collaborating to launch the STC 5G network in 2018. They agreed to collectively work towards finding the most optimal network strategy and relevant use-cases for 5G deployment in the Saudi market. As a first step, hundreds of 5G base stations are planned to be deployed in the Western region in the Kingdom (Makkah, Madinah and Yanbu).
The 5G collaboration aims to use Nokia’s equipment and solutions, including 5G-ready AirScale platform and AirFrame data center for the network launch. The unique combination of high-speed and low-latency in 5G technology opens up a number of new and exciting Use-cases such as: Virtual Reality, Augmented Reality, connected cars, industrial Robots, remote Healthcare, etc.
Acting STC Group CEO, Nasser Al Nasser said: “We have been working closely with Nokia over the last 20 years. It is a testimony for this successful partnership that we have decided to collaborate with Nokia for this critical launch, with the aim of making 5G a reality in 2018. We are confident that Nokia’s proven expertise and technology leadership in 5G will work in our favor and will help us in deploying a pioneering and innovative 5G services.”
Amr K. El Leithy, Head of Middle East and Africa Market at Nokia, said:
“We have defined a 5G Future X portfolio that draws on our research across radio, optics, IP and software technologies. Our market-leading, end-to-end portfolio including Nokia AirScale radio and the Nokia AirFrame datacenter solution will allow STC to evolve its network, managing 4G demands today and the 5G demands of the future. Working together with STC, we will leverage our technology expertise to define the strategies and services that will help STC achieve its vision 2020.”
Mar 05, 2018 12:00:00 AM Asia/RiyadhLTE ADVANCED AND NB-IOT DRIVE STC 4G EXPANSION IN SAUDI ARABIA
Subscribers to benefit from improved user experience. Enterprises to benefit from IoT connectivity
Network expansion spans Ericsson’s Massive IoT, Managed Services and Networks offerings, including 5G-ready hardware
Helps to position Saudi Arabia at the forefront of technological advancement
Ericsson (NASDAQ:ERIC) has been chosen by Saudi Telecom Company (STC) Group for a major nationwide expansion of its 4G network in Saudia Arabia, including the deployment of LTE Advanced and Narrow Band-Internet of Things (NB-IoT) in Radio Access Network. The deal spearheads STC’s drive to revolutionize mobile broadband-driven data experiences for its subscribers and open up new enterprise opportunties in IoT, while laying the groundwork for evolution to 5G.
The LTE Advanced expansion, which got underway in December 2017, includes the deployment of Ericsson’s 5G-ready baseband hardware in the network. LTE Advanced will be deployed in a new 700MHz band spectrum acquired by STC. It will increase STC network throughput in 4G/LTE by up to 50 percent for smartphones.
In addition to the data-driven content access speed delivered by LTE Advanced, subscribers will benefit from extended coverage, much longer battery life, and low-cost devices enabled by the new cellular IoT technology, NB-IoT.
The digital transformation also sees STC deploying Narrow Band-IoT (NB-IoT) in RAN across its expanded network to drive and support enterprise IoT Ecosystem innovation and business opportunities. This includes Massive IoT applications for smart city purposes, such as metering, parking sensors, and connected cars.
STC recently renewed and upgraded its managed services contract with Ericsson. In addition to existing network planning and optimization, network operations and telecom field services, the contract now includes field services efficiency, as well as first and second line support.
Nasser Al Nasser, STC Group CEO, says: “At STC, our main goal is to ensure that the country’s Saudi Vision 2030 ambitions are met. We do that by always making sure we offer our subscribers the latest innovative technologies. LTE Advanced and NB-IoT are exactly what we need to pave the way to 5G.”
Rafiah Ibrahim, Head of Market Area Middle East and Africa, Ericsson, says: “By making digital transformation real and effective for STC through 4G expansion, we will enable their customers to enjoy enriched experiences, whether that means lightning speed video and media access for subscribers, or IoT business innovation and opportunities for enterprises. Our partnership with STC shows 4G network evolution is already happening and paving the way for 5G.”
STC has already deployed multiple 4G layers across various frequencies (LTE 1800, LTE 2300, and LTE 2100).
Mar 01, 2018 12:00:00 AM Asia/Riyadh
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