STC, the largest telecom operator in Saudi Arabia and the Middle East, announced its consolidated financial results for the year 2023, showing a remarkable growth in revenues and profits. The company reported revenues of SAR 72.3 billion, an increase of 7.3% compared to the previous year. The net profit reached SAR 13.3 billion, an increase of 9.2% compared to the previous year.
The company attributed the increase in revenues and profits to several factors, such as the expansion of its commercial unit, which grew by 5.1%, the growth of its carriers and wholesale unit, which grew by 1.4%, and the surge of its subsidiary revenues, which grew by 23.9%. The company also benefited from the reversal of a contingent liability provision of SAR 1.1 billion in the previous year, which positively impacted the cost of revenues.
The company announced a cash dividend of SAR 1 per share, or SAR 2 billion, for the fourth quarter of 2023. In addition, the company announced a special dividend of SAR 1 per share, or SAR 5 billion, for the year 2023. The total dividends for the year amounted to SAR 10 billion, or SAR 2 per share, representing a payout ratio of 75%.
STC invests in new domains and digital transformation
STC said it continued to invest in new domains and digital transformation, in line with its strategy and vision. The company said it launched several initiatives and projects to enhance its customer experience, operational efficiency, and market competitiveness. Some of these initiatives and projects include:
- Launching the first 5G standalone network in the region, which offers faster speeds, lower latency, and higher reliability for customers and businesses.
- Acquiring a 55% stake in Vodafone Egypt, the largest mobile operator in Egypt, for $2.4 billion, which strengthens STC’s position as a leading regional player and expands its customer base to more than 100 million.
- Establishing stc pay, a digital wallet and payment platform, which offers various financial services, such as money transfer, bill payment, online shopping, and loyalty programs. stc pay became the first fintech company in Saudi Arabia to receive a banking license from the Saudi Central Bank.
- Launching stc cloud, a cloud computing and data center provider, which offers various solutions, such as infrastructure as a service, platform as a service, software as a service, and security as a service. stc cloud became the first cloud provider in the region to achieve the ISO 27017 certification for cloud security.
- Partnering with Google Cloud, a global leader in cloud computing, to offer cloud services and solutions to customers and businesses in Saudi Arabia and the region. The partnership aims to accelerate the digital transformation and innovation in the kingdom and to support the Vision 2030 goals.
STC faces challenges and opportunities amid the Covid-19 pandemic
STC said it faced several challenges and opportunities amid the Covid-19 pandemic, which affected the telecom sector and the economy in general. The company said it took several measures and actions to cope with the situation and to ensure the continuity and quality of its services. Some of these measures and actions include:
- Implementing precautionary and preventive measures to protect the health and safety of its employees, customers, and partners, such as remote working, social distancing, sanitization, and vaccination.
- Providing free and unlimited access to educational and health platforms and applications, such as Madrasati, Sehha, and Tawakkalna, to support the online learning and health care initiatives in the kingdom.
- Offering discounts and incentives to its customers and businesses, such as free data, calls, and SMS, to ease the financial burden and to encourage the use of digital channels and services.
- Supporting the government and the society in their efforts to combat the pandemic and to mitigate its impact, such as donating SAR 100 million to the Health Endowment Fund, providing medical equipment and supplies, and launching awareness campaigns.
The company said it also seized the opportunities created by the pandemic, such as the increased demand for data and digital services, the accelerated adoption of e-commerce and fintech, and the emergence of new business models and segments. The company said it leveraged its capabilities and resources to meet the changing needs and expectations of its customers and to create value for its shareholders and stakeholders.
