stc’s Net income for Q2 and first half of 2021 compared to the comparable quarter and first half of last year

Aug 05, 2021

stc’s Net income for Q2 and first half of 2021 compared to the comparable quarter and first half of last year

stc today announced the company’s preliminary financial results for the period ending at 30 June 2021:

  • Revenues for the 2nd quarter reached SR 15,899m with an increase of 6.56% compared to the corresponding quarter last year. For the first half of 2021, the revenues reached SR 31,594m an increase of 9.49%.
  • Gross Profit for the 2nd quarter reached to SR 8,352m with an increase of 0.13% compared to the corresponding quarter last year. For the first half of 2021, the Gross Profit reached SR 16,909m with an increase of 2.25%.
  • Operating Profit for the 2nd quarter reached to SR 3,250m with an increase of 6.14% compared to the corresponding quarter last year. For the first half of 2021, the Operating Profit reached SR 6,732m with an increase of 10.98%.
  • Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the 2nd quarter reached to SR 5,627m with an increase of 5.34% compared to the corresponding quarter last year. For the first half of 2021, the Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) reached SR 11,468m with an increase of 7.47%.
  • Net Profit for the 2nd quarter reached to SR 2,821m with an increase of 3.56% compared to the corresponding quarter last year. For the first half of 2021, the Net Income reached SR 5,773m with an increase of 2.41%.
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 Q2 2021, representing SR 1 per share. The eligibility of dividends shall be for the shareholders at the close of trading on Thursday 05/08/2021 corresponding to 26/12/1442 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 26/08/2021 corresponding to 18/01/1443H.
Commenting on these results, Eng. Olayan Mohammed Alwetaid, stc Group CEO, stated that the company has achieved the highest quarterly and semi-annual revenues in its history, which is a direct result of the distinguished performance of all business units, and the group's subsidiaries, which reflected positively on the financial results. The Enterprise business unit achieved an increase in revenues for the period by 29.3% thanks to the company's ability to provide innovative products and services that meet the needs of the public and private sector. As for the Wholesale business unit, revenues for the period increased by 5.5%, as a result of stc’s investments in infrastructure, which is starting to positively reflect on the unit’s results. The Consumer business unit also contributed positively to the results for the period as a result of an increase in operating lines by 3.4%, an increase in fixed wireless access subscribers by 6.1%, and an increase in demand for fiber-optic services, which led to an increase in the subscriber base by 20.8%.
As a continuation of the company's achievements, stc has topped the list of the best telecommunications companies in the region according to the ranking by the global magazine “Forbes”. stc has been ranked first as the strongest telecommunications company in the Middle East and North Africa. stc also is among the top 44 digital companies in the world.
stc, through the digital payments company “stc pay”, was able to obtain the license approval of the Council of Ministers on 12-11-1442 AH corresponding to 22-06-2021 for stc pay to become one of the first digital banks in the Kingdom of Saudi Arabia. This reflects stc’s success in achieving its ambitious strategy "Dare 2.0", which aims to grow in new, unconventional paths and play a pivotal role in digital transformation and digital empowerment for the public and private sectors and in line with the goals of the Kingdom's Vision 2030 towards a prosperous and diversified economy.
The Arabian internet and Communications Services Company "solutions by stc" obtained the approval of the Capital Market Authority to offer 24,000,000 shares for public subscription representing (20%) of its shares. This will enable the company to achieve its strategy and goals that seek to develop and the information technology and digital services sector. The offering of Solutions by stc is also in line with stc's strategy, which aims to expand the scale and scope and maximize returns for shareholders by accelerating the performance of assets.
Lastly and despite all the challenges faced due to Covid-19, stc has succeeded in maintaining its outstanding performance and achieving growth in most of its sectors. It has also been able to provide support to the public and private sectors, enabling them to digitally transform, preserve their business, and create new investment opportunities. In addition, stc was able to build the largest advanced 5G network in the Middle East covering most regions of the Kingdom, and these achievements are the result of continuous efforts in developing the network systems and infrastructure. After 5 years full of achievements in digital transformation and integrated infrastructure, stc will continue its efforts to develop a reliable and advanced digital network and infrastructure enabling the Kingdom of Saudi Arabia to become a leading regional center for digital services through innovative projects and global partnerships.