Increase by 1.5 Billion of STC’s procurement from local SMEs
STC Group CEO Nasser Al-Nasser said during The Day of Local Content Forum: “Rawafed's program aims to enhance local content and innovation increasing localization rates, support small and medium enterprises in the field of ICT and train them in transferring knowledge and opening new opportunities for these enterprises beyond the Kingdom, As well as building innovative centers in collaboration with global partners”.
He pointed out that the company in 2017 exceeded the target of 15% allocated to purchase from small and medium enterprises to 24% of its procurement budget. The company will increase this percentage gradually, directly and indirectly through the partners of STC, and this is in light of the Convention signed with The General Authority for Small and Medium Enterprises, to allocate a percentage of the Saudi Telecom purchases budget for Saudi small and medium enterprises. This initiative is in line with the company's active role in achieving objectives of vision 2030.
STC procurement VP and Support Services Imad Al-Awda refered to STC’s strategic initiatives to support local content as one of the main axes and a top priority. “we are developing an ambitious and sustainable framework in cooperation with its governmental and private partners to maximize local content”. He added.
“The company, in cooperation with its strategic partners, will sponsor the establishment of several research and innovation centers that will create an environment conducive to innovation and contribute to the development of an innovative infrastructure that complies with the information aspirations of the Kingdom with leading companies such as Ericsson, Nokia and Huawei”. He said.
May 15, 2018 12:00:00 AM Asia/RiyadhSTC’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 Launches the First live 5G network in MENA
On this occasion, Eng. Abdullah Alkanhal, undersecretary of the Ministry of CIT stated that” launching 5G reflects the improvement of CIT sector in the Kingdom, in line with the digitization plans, NTP 2020, and kingdom`s vision 2030. The ministry with the guidance of Abdullah Alsawaha, Minister of CIT, exerts great efforts to improve this vital sector for the prosperity and comfort of the people of Saudi”. He pointed out that the launch of the first network in the region is an affirmation of the Kingdom's move towards digitization by providing the latest technologies to ensure advanced infrastructure that contributes to the successful vision of the Kingdom.
Eng. Nasser Al Nasser, STC Group CEO, expressed his proudness of this initial launching that confirms STC`s pioneering position in providing innovative services for the customers around the Kingdom and the region. He added:’ we have confidence, knowledge, and innovation, which will enable us to lead the 5G era”. He said:” the launching of 5G started with operating a number of towers, initially, in the eastern region”.
Al Nasser added:”the company will continue working on building the network construction gradually in the cities of the Kingdom until the devices are available during of 2019”
The launching ceremony was accompanied by a pavilion to explain about 5G, in King Faisal Sea Park in Khobar; the visitors were able to review the virtual neighborhood services, 5G car, and K4 Videos
In January 2017, STC succeeded in advanced technical experiments and trials on 5G technology as part of the company's strategy of leading technological development and leading modern and advanced services”
The widespread use of 5G will facilitate the dissemination of information, promote the prosperity of the common digital economy and accelerate changes in current productivity methods and lifestyles.
The 5G network is expected to make a quantum leap in future services and applications and will contribute in increasing the speed and performance of wireless networks. The 5G will not only affect the efficiency of communication between people and their phones or computers only, it will affect more sophisticated uses such as IOT, AI, and robots
May 16, 2018 12:00:00 AM Asia/RiyadhSTC launches the first live 5G network in MENA
STC announced the first live 5G network in MENA. This launching is the initial phase for operating the service once 5G special devices are available in the global markets.
In January 2017, STC succeeded in advanced technical experiments and trials on 5G technology as part of the company's strategy of leading technological development and leading modern and advanced services.
The widespread use of 5G will facilitate the dissemination of information, promote prosperity of the common digital economy and accelerate changes in productivity methods and lifestyles.
May 15, 2018 12:00:00 AM Asia/Riyadh
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