STC reports 37% Net Income growth for year 2013, and increase Q4 dividends to SR 0.75 per share
Saudi NewsJan 20, 2014
Riyadh, Kingdom of Saudi Arabia, 20 January, 2014 - Saudi Telecom Company (STC) today
announced the company’s preliminary financial results for the period ending at 31 December 2013 (12 months).
Revenues for the 12 months reached SR 45,602m, an increase of 2% compared to the previous year after adjusting the comparable numbers
Gross profit for the 12 months reached SR 27,413m, an increase of 9% compared to the previous year after adjusting the comparable numbers
Operating profit for the 12 months reached SR 11,039m, an increase of 13% compared to the previous year after adjusting the comparable numbers
EBITDA for the 4th quarter amounted to SR 4,505m, an increase of 25% compared to the same period last year after adjusting the comparable numbers. While, for the 12 months amounted to SR 17,417m, an increase of 8.3% compared to the previous year after adjusting the comparable numbers.
More than 830,000 location (site) were reached with the fiber optic network
Wireless broadband revenue for 2013 increased 80% compared to the previous year
After adjusting all comparable numbers, net profit for the 4th quarter reached SR 3,623m, an increase of 822% compared to the corresponding period last year, and an increase of 7% compared to the immediately prior quarter. While for the 12 months, Net profit amounted to SR 9,987m compared to SR 7,276m for the previous year, an increase of 37%.
These financial results for the period has lead the Board of Directors to recommend the distribution of a total of SR 1,500 million in cash dividend for Q4 2013, representing SR 0.75 per share.
Commenting on the results, STC Group chairman and managing director, Mr. Abdulaziz Alsugair, stated: “The strong financial results achieved during the 4th quarter & the full year 2013 reflects the efforts being made to constantly evolve, improve and develop the company’s strategy and operations both domestically and internationally. We continue to maintain an acute focus on reinforcing our presence in our home market and make all resources available in order to capture share of this growth. At the same time, we continue to rationalize STC international portfolio, and evaluate options for some of these investments in order to take appropriate actions in the best interest of the shareholders.”
Mr. Alsugair also stated, “STC continued to grow its operations, domestically and internationally. Revenues from domestic operations during the year 2013 increased 3.2% as a result to the growth in business sector services revenues and Broadband (fixed & wireless) services revenues. Revenues from the controlled international subsidiaries grew 21% compared to previous year.”
Mr. Alsugair concluded “that STC cooperates with government and private entities in order to develop an infrastructure that is capable of providing complete telecom solutions and contribute to adopting new ideas, products for building smart cities centered on information and communication technology.”
Internationally, the strong performance of VIVA Bahrain & VIVA Kuwait continues and both these operations delivered above target results.
As announced previously, STC has signed an Sale and Purchase Agreement (SPA) to sell its stake in Axis to PT XL Axiata Tbk. The completion of the transaction remains subject to the applicable Indonesian regulatory approvals as well as the approval of XL shareholders’ at its Extraordinary General Meeting.
Domestically, STC continues with the introduction of innovative and value added services that encourage mobile usage and targeted packages bundled with advanced smart phones. This is underpinned by the Company’s customer-centric approach and its efforts to enhance the overall customers experience. The company, continued increasing the coverage of 3G & 3.5G networks to reach various parts of the country covering more than 96% of populated areas and deployment of the 4G network. As a result, the wireless broadband revenues grew more than 200% during the 4th quarter compared to the same period last year and grew 80% during 2013 compared to the previous year.
STC’s fiber optic network (homes & Businesses) reached more than 830,000 home pass (site) with an increase of 88% during the 4th quarter compared to same period last year, and 12% compared to the previous quarter. The ongoing network expansion has also led to a further increase of 32% in the number of “InVISION” subscribers (STC’s Interactive TV service) during the 4th quarter compared to same period last year. The number of subscribers in bundled services grew by 4% during the 4th quarter compared to same period last year.
Enterprise business unit overall revenues increased 11% during the 4th quarter compared to same period last year, driven by the 20% increase in Business sector data services revenues, and 10% increase in the fixed line revenues during Q4 compared to same period last year. For the twelve months, Business sector data services revenues increased 18% compared to the previous year, attributed mainly to the 27% increase in government sales and in 20% increase in key accounts sales during the year compared to the previous year.