Oct 24, 2021
stc today announced the company’s preliminary financial results for the period ending at 30 September 2021
- Revenues for the 3rd quarter reached SR 15,735m with an increase of 5.74% compared to the corresponding quarter last year. For the 9 months period of 2021, the revenues reached SR 47,330m an increase of 8.22%.
- Gross Profit for the 3rd quarter reached to SR 8,369m with a decrease of (6.71%) compared to the corresponding quarter last year. For the 9 months period of 2021, the Gross Profit reached SR 25,278m with a decrease of (0.90%).
- Operating Profit for the 3rd quarter reached to SR 3,192m with a decrease of (7.75%) compared to the corresponding quarter last year. For the 9 months period of 2021, the Operating Profit reached SR 9,924m with an increase of 4.18%.
- Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the 3rd quarter reached to SR 5,606m with a decrease of (3.14%) compared to the corresponding quarter last year. For the 9 months period of 2021, the Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) reached SR 17,073m with an increase of 3.72%.
- Net Profit for the 3rd quarter reached to SR 2,924m with an increase of 5.71% compared to the corresponding quarter last year. For the 9 months period of 2021, the Net Profit reached SR 8,698m with an increase of 3.52%.
In accordance with the approved dividend policy for three years starting from the 4th quarter 2018, which was announced on 16 December 2018, and has been ratified during the Extra Ordinary General Assembly Meeting on April 24th 2019, stc will distribute a total of SR 1,997 million in cash dividend for Q3 2021, representing SR 1 per share. The eligibility of dividends shall be for the shareholders at the close of trading on Thursday 28/10/2021 corresponding to 22/03/1443 H and as per the registered shareholders in the register of The Securities Depository Center Company at the end of the 2nd trading day following the eligibility date. Dividend distribution date will be on 18/11/2021 corresponding to 13/04/1443H.
Commenting on these results, Eng. Olayan Mohammed Alwetaid, stc Group CEO, stated that the company’s results for the 9 month period came in line with our expectations, as the company was able to grow its top line by 8.2% compared to the same period last year, which was achieved through the continuation of the exceptional performance from the Enterprise business unit and its ability to grow its revenues, as it achieved 27.4% revenue growth during the period, due to the unit being well positioned to cater to the strong demand from the public and private sectors. The Wholesale business unit also contributed positively to the company’s performance, as it registered 3.4% revenue growth during the period due to the increase in its international revenues, benefitting from stc’s infrastructure investments which led to a growth in the company’s Hubbing services. As for the Consumer business unit, revenues increased for the residential segment, driven by an increase in FTTH and fixed wireless access subscribers by 15% and 27%, respectively.
Alwetaid went on to say that stc aims to establish its position among the world's leading companies, and to enable innovation and digital transformation in the Middle East and North Africa through an integrated system of services provided by the Group and its subsidiaries. This has enhanced the success of companies such as (solutions by stc) to transform from a SR 100 million acquisition in 2007 to a company with a value of more than 18 billion riyals upon its listing, and becoming at the forefront of IT service providers for five consecutive years, in addition to being the preferred partner for the public and private sectors in the Kingdom. The successful listing of (solutions by stc) in the Saudi Stock Exchange, Tadawul, represents a qualitative and important leap in supporting companies working in the field of communications and information technology.
Recently, stc announced its wholly owned submarine cable system named Saudi Vision Cable, that is inspired by the Saudi 2030 vision, which will be a game changer for subsea cables in the region. This state of the art submarine cable system will enable a unique and low latency route, linking the major subsea hubs in the Red Sea cities of Saudi Arabia. Saudi Vision Cable is the first ever high capacity submarine cable in the Red Sea region that will provide seamless connectivity through 4 landings in Jeddah, Yanbu, Duba, and Haql.
Further and in recognition of the strong financial position of the company and its objective to maximize its shareholders’ value, the Board of Directors of Saudi Telecom Company has recently recommended a dividend policy starting from the 4th quarter of 2021. Where stc commits to distribute SR 1 per quarter for the next three years, with a possibility of paying additional dividends subject to assessment of the company’s financial position, future outlook, and capital requirements.
Finally, stc is still committed to investing in infrastructure and acting as a national enabler for digital transformation. As stc adopts sustainable national initiatives that are concerned with building digital capabilities and skills for future leaders, embracing entrepreneurs and innovators, supporting the digital environment, empowering society and consolidating the Kingdom’s position as a regional technical leader
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