stc’s Net income for Q1 of 2021 compared to the corresponding quarter last year increased by 1.34%

Apr 22, 2021

stc’s Net income for Q1 of 2021 compared to the corresponding quarter last year increased by 1.34%

  • Revenues for the 1st quarter reached SR 15,695m with an increase of 12.63% compared to the corresponding quarter last year.
  • Gross Profit for the for the 1st quarter reached to SR 8,557m with an increase of 4.40% compared to the corresponding quarter last year.
  • Operating Profit for the 1st quarter reached to SR 3,482m with an increase of 15.91% compared to the corresponding quarter last year
  • Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the 1st quarter reached to SR 5,841m with an increase of 9.59% compared to the corresponding quarter last year.
  • Net Income for the 1st quarter reached to SR 2,952m with an increase of 1.34% compared to the corresponding quarter last year

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 2,000 million in cash dividend for Q1 2021, representing SR 1 per share.
The eligibility of dividends shall be for the shareholders at the close of trading on Tuesday 04/05/2021 corresponding to 22/09/1442 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 31/05/2021 corresponding to 19/10/1442H.
Commenting on these results, Eng. Olayan Mohammed Alwetaid, stc Group CEO, stated that the company’s results for this quarter as compared to the comparable quarter last year was distinct. The company was able to grow its top line by 12.6%, supported by the increase witnessed in Consumer Business Unite revenues due to the growth in the Broadband & Fixed Wireless Access subscriber base by 10.1%, FTTH by 26%, working lines by 3.1% and data revenue by 4.5%. Further, Enterprise Business Unite revenues also grew by 33.4%, as a result of the increased demand for the company's services & products along with its ability to swiftly respond to customers’ request and demand in a competitive manner. As for Wholesale Sector, it managed to increase its revenues by 5.1%. Moreover, the revenues generated by stc’s subsidiaries grew by 23.2%, which contributed positively to the group's overall results.
Eng. Alwetaid also pointed out that stc surpassed its counterparts in the region to become the most valuable brand in the telecommunications sector, and the third most valuable brand in all sectors, according to Brand Finance. The company also celebrated being the region’s fastest-growing brand, up an impressive 14% to US$9.2 billion and simultaneously jumping 51 positions to 189th, making stc the 2nd fastest-growing brand of the largest 20 global telecommunications companies.
In addition and as part of our journey for digital transformation, stc has launched the digital operations control center, which is considered the largest integrated operating center in the region with an area of more than 42,000 square meters. The digital operations control center includes a system made out of advanced digital processes in several areas, such as simulation, digital infrastructure management, digital crises management and reinvention within a range of other digital solutions while abiding by high security standards. He also noted that the center will enhance Saudi Arabia's position as a leading regional business center or a" HUB". Which would help to achieve the objectives of the second phase of stc's "DARE" strategy, in order to enable digital transformation in various fields.
Recently, stc Group announced the launch of the Advanced Technology and Cybersecurity Company; a new company dedicated to providing advanced cybersecurity services and solutions to the business sector. The recently announced launch comes to keep abreast of the growing demand for digital services in parallel with stc's DARE Strategy, which aims to foster digital transformation, pave new paths for development, and achieve the objectives of Saudi Vision 2030.