strategy performance
review
- Through the “Digitize stc” pillar, it prioritized advancing internal digital transformation by building in-house digital and analytical capabilities while strengthening cybersecurity readiness and adaptability.
Description
- Developing advanced in-house digital and analytical capabilities and improving our cybersecurity readiness and flexibility.
Objectives
- Instill digital mindset and unlock the potential of digital and analytics capabilities.
- Transform into an agile technology company and embrace new ways of working.
Achievements
- Accelerated digital capabilities with development of +120 advanced analytics use cases.
- Enabled new ways of working and agility across the Group with further digitized business and organizational journeys.
- The “Accelerate performance” pillar focused on driving group performance by developing new digital services, monetizing assets, enhancing business efficiency, maintaining technological leadership, improving sustainability maturity and fostering a positive culture and work environment.
Description
- Developing new digital services, monetizing assets, enhancing business efficiency, maintaining our leadership in technology, improving our sustainability maturity, and fostering a healthy and conducive culture and work environment for our employees.
Objectives
- Maximize shareholder returns by transforming costs and monetizing assets.
- Connect our market through leading next-gen technology and digital offerings.
- Be a role model for sustainability and corporate governance.
- Lead Group-wide culture change and be the employer of choice for top digital talent.
Achievements
- Achieved highest-ever revenues of % 72.34 billion for 2023 with an increase of 7.3% compared to 2022, with improved business efficiency to realize a net profit of % 13.30 billion, an increase of 9.2% compared to 2022.
- Maintained technology leadership in Saudi by reaching 47.5% 5G coverage of KSA population and announcing massive expansion of 5G network across the Kingdom.
- Connected +3.2 million households with fiber and 4 Gbps FTTH traffic increase.
- Launched first global operations for Tawal in Pakistan.
- TAWAL acquired towers in 3 European markets to increase towers portfolio to +21,000 towers across 5 countries.
- stc won the Forbes Middle East Sustainability Leaders Award in recognition of efforts to reduce carbon emissions and promote sustainable practices.
- Transformed organizational cultural with top quartile Organizational Health Index (OHI) score.
- Provided +250,000 learning hours through stc Academy and +919 employees enrolled in special talent programs.
- Became a leading digital services provider with stc tv having 3.6 million (authorized subscribers)*, in which 945,000 are (active views)**. In addition, stc play reached 3 million registered users.
- Continuing to enable Saudi startups with InspireU (+110 startups incubated since launch) with a total valuation of % +12 billion and launch of Corporate Investment Fund to invest in early-stage startups in various domains including fintech, cybersecurity, AI and other fields.
- Further advanced in technology and digital services by development of 19 emerging technologies POCs.
*Authorized subscribers: Customers who have generated their login credentials and logged into stc tv or Jawwy TV at least once in their lifetime.
**Active viewers: Customers who accessed the platform (stc tv or Jawwy TV) within the last 30 days.
- Recognizing the importance of stakeholder satisfaction, the “Reinvent experience” pillar emphasized delivering exceptional experiences for customers, partners and employees through the digitization and optimization of end-to-end journeys.
Description
- Providing an exceptional experience for our customers, partners, and employees by improving and digitizing their end-to-end journeys and touchpoints.
Objectives
- Excite customers with a seamless, personalized and secure experience.
- Be the trusted partner-of-choice for business in the region.
Achievements
- Modernized infrastructure, to enable further innovation and create a better customer experience by migrating ~300k copper lines.
- Continued strategic partnerships to enable advanced connectivity services and drive the digital success of major projects in the Kingdom, including Red Sea Global, NEOM, Diriyah Gate and the Royal Commission of Al Ula.
- Strengthened Qitaf loyalty program reached 15.7 million users (fixed and mobile lines).
- Won multiple awards showcasing stc’s commitment to offering the best customer experience, including winning Best 5G Experience Award during the SAMENA Lead 2023 event and winning the Computing - Telecommunications category at the Middle East Technology Excellence Awards for stc’s initiatives in enterprise and business connectivity.
- For growth, stc adopted the “Expand scale and scope” pillar as a growth engine, targeting new geographies, establishing a regional data hub and expanding into emerging areas such as cloud services, IT solutions, cybersecurity, IoT-enabled industry verticals, consumer solutions and fintech.
Description
- For growth, stc adopted the “Expand scale and scope” pillar as a growth engine, targeting new geographies, establishing a regional data hub and expanding into emerging areas such as cloud services, IT solutions, cybersecurity, IoT-enabled industry verticals, consumer solutions and fintech.
Objectives
- Multiply by expanding into selected pillars within digital services and core.
Achievements
- stc Bank continues to grow with a 23.2% growth in active users (180 days) in 2023.
- Expanding stc Bank services with the launch of beta version and launching the operations of stc pay in Bahrain successfully.
- Further reinforcing Saudi Arabia as a digital hub, by developing new data traffic routes and by linking Saudi Arabia to Europe through building the EMC West subsea and terrestrial data cables (reaching a total of 16 subsea cables by center3).
- sirar being ranked first across MENA in Alert’s Top 250 Managed Security Service Providers for 2023 list, showcasing stc’s commitment to cybersecurity excellence.
- center3 reached a total of 25 data centers (operational and under construction).
- Enhancing the ICT bundle through solutions acquisition of Devoteam.
- Accelerated iot squared growth by acquiring Machinestalk, and through strategic partnerships with Huawei to progress in 5G and IoT innovations and with Hitachi to enrich the smart city landscape.
- Telco expansion through minority stake acquisition of Telefonica.
A year of outstanding progress and achievements
stc successfully advanced the execution of its DARE strategy, achieving notable milestones through strategic investments and strengthened capabilities. Its focus and commitment to its 4 strategic pillars have driven consistent growth and progress toward its goals.
stc’s dedication to digitization and digital transformation has led to enhanced digital capabilities, with development of advanced analytics use cases, and enabled a more agile and flexible Group through further digitized processes, business and organizational journeys.
stc accelerated its performance during the year of 2024 with improved business efficiency and technology leadership in the region, expanding its infrastructure and achieving fiber connections for 3.6 million households and 54.70% 5G coverage of KSA’s population. This was reflected in stc’s ranking among the world’s top 150 brands and as the most valuable telecom brand in the Middle East.
Additionally, stc placed significant focus on employee development, delivering extensive learning opportunities through specialized talent programs. Reinforcing its commitment to sustainability, stc joined the “KSA Sustainability Champions” program, led by the Ministry of Economy and Planning, with a pledge to achieve net zero emissions by 2060. In fostering innovation and entrepreneurship, stc incubated more than 130 startups through inspireU, with the total funding raised by these startups is exceeding % 1 billion since 2015 to date, while strategically investing in early-stage ventures across critical domains such as fintech, cybersecurity and AI.
stc continued to reinvent experiences to foster deeper connections and deliver unmatched value at every interaction by modernizing its infrastructure, including the migration of 50% of copper customers to fiber services since 2022, in order to drive innovation and enhance customer experiences. Its Qitaf loyalty program also saw significant growth, reaching 18.03 million users. These achievements have earned stc multiple awards for excellence in customer experience, including “Best Middle Eastern Connectivity Provider” at the Global Connectivity Awards 2024.
To support the digital success of the Kingdom’s mega projects, stc has established strategic partnerships, most recently with New Murabba. On a global scale, it continues to strengthen collaborations with industry leaders such as Huawei, Ericsson and Samsung.
Expansion remains a central focus for stc, as it actively pursues opportunities in targeted growth areas and accelerates IoT advancements through a strategic partnership with China Mobile International to modernize IoT aggregation. STC Bank has also made strides, forming partnerships to enhance secure payment solutions and digital banking services, achieving a solid 24% growth in active users in 2024. Additionally, stc continues to strengthen its presence through center3, with a total of 25 data centers and expanding its network to include 16 subsea cables.
54.70%
5G
coverage of KSA’s population
Accelerating towards Vision 2030
Saudi Vision 2030 seeks to transform Saudi Arabia by enhancing society, diversifying the economy and fostering an ambitious nation. As a key contributor to this transformative journey, stc has made significant strides toward achieving the vision’s goals across various critical areas.
stc has improved community life by enhancing connectivity across the Kingdom, playing a pivotal role in driving the vision’s digital transformation. Through strategic investments, it has connected millions of households with fiber and expanded 5G coverage to a significant portion of the population, with plans for further network expansion.
Economically, stc drives growth by investing in infrastructure and innovation. Initiatives like inspireU have empowered Saudi startups, while the launch of the Tali Fund underscores its commitment to invest early-stage startups. As a leading employer in the region, stc contributes to reducing the nationwide unemployment rate. Its efforts in digital services helped in the growth of local businesses, creating jobs and promoting entrepreneurship. stc also continues to prepare the workforce for future opportunities, through training programs, contributing to the Kingdom’s goal of economic diversification.
stc remains at the forefront of technological innovation, leading advancements such as the rollout of 5G technology, which has significantly enhanced connectivity and digital offerings, including STC Bank, stc play and stc tv. As a strong advocate for local content, stc achieved a score of 44.32%, reflecting an increase of 3.31% compared to 2023. stc also actively contributes to Saudi Vision 2030 by participating in mega projects and reinforcing its role as a trusted partner for foreign digital investments through collaborations with global leaders such as Alibaba Cloud, Google, Amazon, Huawei and Hitachi.
stc’s commitment to Vision 2030 underscores its dedication to fostering a vibrant society, supporting a thriving economy, and driving an ambitious nation. As the Kingdom advances on its transformative journey, stc will remain a key enabler, driving innovation and enhancing the quality of life across the nation.
Strategic focus in 2025 and beyond
While its strategy has delivered impressive results, stc remains committed to continuous improvement. Recognizing the importance of adapting to changes in its environment, stc has refined its tactics to ensure the seamless delivery of its strategic direction, vision and values.
Vision
Digital and telco leader, enabling the society and economy to thrive, in KSA and beyond.
Values
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Dynamism - How we become a company that is continuously looking to improve and adopt new and better ways of doing things, with a fresh and ingenious view.
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Devotion - The desire to become a customer-centric company for our clients and our employees.
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Drive - We are “restless”, looking for the best possible solutions for our clients and our employees.
stc’s strategy was developed to maximize shareholder value by balancing growth, efficiency and diversification through 5 guiding principles:
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1. Strengthen market leadership in core telco, doubling down on return-generating infrastructure and customer focus.
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2. Accelerate diversification from core telco by reinforcing winning growth areas and expanding geographically.
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3. Continue the sustainable growth path striking a balance between top-line growth and EBITDA margin.
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4. Ensure execution excellence by fostering a more efficient and productive organization.
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5. Provide improved returns to shareholders.
stc’s new strategy underscores its commitment to long-term growth, value creation and efficiency maximization. The focus remains on reinforcing its leadership in telecommunications, strengthening its digital portfolio and expanding into adjacent markets. Furthermore, stc aims to unlock the full potential of its infrastructure assets, including data centers and subsea cables.
To ensure success, stc is dedicated to building a resilient and agile organization while ensuring the delivery of financially sustainable growth through maximizing operational and capital management efficiencies. In alignment with industry advancements, stc will continue deploying state-of-the-art technologies and positioning itself as the partner of choice for national agenda projects.
