stc Group achieved the highest quarterly revenues in its history, as revenues for Q1, 2023 compared to the comparable quarter of last year increased by 7.45% , and it distributes SAR 0.40 per share dividends for the 1st quarter of 2023.
Riyadh, Kingdom of Saudi Arabia, 10 May 2023- stc today announced the company’s preliminary financial results for the period ending at 31 March 2023:
- Revenues for the 1st quarter reached SAR 18,179m with an increase of 7.45% compared to the corresponding quarter last year.
- Gross Profit for the 1st quarter reached to SAR 9,355m with an increase of 2.24% compared to the corresponding quarter last year.
- Operating Profit for the 1st quarter reached to SAR 3,731m with a decrease of (2.43%) compared to the corresponding quarter last year.
- Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the 1st quarter reached to SAR 6,343m with an increase of 0.68% compared to the corresponding quarter last year.
- Net Profit for the 1st quarter reached to SAR 3,109m with an increase of 2.44% compared to the corresponding quarter last year.
In accordance with the dividends distribution policy for three years period starting from the 4th quarter of 2021, which was ratified during the Ordinary General Assembly Meeting on 30-11-2021. In addition to the amendment on the dividends distribution policy, which was ratified by the Extraordinary General Assembly Meeting on 30-8-2022, by distributing an amount of SAR 0.40 per share per quarter, stc will distribute a total of SAR 1,992.87 million in cash dividends to the shareholders for the 1st quarter of 2023, representing SAR 0.40 per share as the total number of Treasury shares related to the Employees Stock Incentives Plan stood at 17,821,798 shares at the end of the first quarter 2023 and those shares are not entitled for any dividends distribution. The eligibility of dividends shall be for the shareholders at the close of trading on Thursday 18-05-2023 and as per the registered shareholders in stc’s shareholders at the end of the eligibility day. Dividend distribution date will be on Wednesday 07-06-2023.
Commenting on these results, Eng. Olyan Mohammed Alwetaid, stc Group CEO, stated that during the first quarter of this year, and in line with the company’s “DARE 2.0” strategy, the Group announced the launch of its Corporate Investment Fund (CIF). The fund aims to invest in early stages startups in various domains including fintech, cybersecurity, artificial intelligence, Internet of Things, and other promising areas. The launch of the fund comes as a reinforcement of the Group’s leadership in the digital and innovation fields, and in support of the Kingdom’s Vision 2030 to diversify the economy by expanding investment in new sectors and supporting entrepreneurs and startups relevant to the Group’s strategy, locally, regionally, and globally.
Recently, stc Group announced its entry into the European market through its subsidiary, “TAWAL”, a leading provider in ICT infrastructure. TAWAL, has signed an agreement to acquire United Group’s telecommunications tower assets. The agreement, valued at EUR 1.22 bn (around SAR 5 billion), supports stc Group’s ambitious strategy to expand its international footprint. This acquisition represents another significant step for the stc Group in executing its strategy of expansion and growth, following its entry into several promising fields and investments in information technology, Internet of Things, cloud computing, information security, fintech, and digital entertainment, as well as its geographic expansion in Bahrain, Kuwait, and Malaysia through its subsidiaries.
As part of the company’s “DARE 2.0” strategy, which aims to grow the activities and investments of the Group, solutions by stc (one of the Group’s subsidiaries) has completed the acquisition of 100% of Contact Centers Company (ccc), the business process outsourcing market leader in the kingdom of Saudi Arabia, with an enterprise value of SAR 450 million. Through this acquisition, solutions by stc aims to enhance its growth and leadership in the ICT sector in the Kingdom. This is the second acquisition for solutions by stc, following its acquisition of Giza Systems last year.
Mr. Alwetaid also pointed out that stc Group, through the global technology conference “LEAP23”, signed more than 40 agreements with major global and local companies, which will support future technologies and contribute to accelerating the digital transformation of the public and private sectors in line with the Group’s strategy and the Kingdom’s Vision 2030.
Since the Kingdom’s Vision 2030 is a sustainable vision, stc has announced its commitment to contribute to planting one million trees by 2030. Through this commitment, the Group seeks to support the Kingdom’s targets in the Saudi Green Initiative and the Middle East Green Initiative, and to support natural plant growth and enhance local wildlife. stc contributes to setting plans and goals that promote reducing emissions and waste, raising awareness, identifying risks, and opportunities arising from climate change effects. It aims to reduce the impacts associated with the use of its products and services, and enable both the public and private sectors and its customers to reduce their carbon footprint through its services.
In conclusion, we remain committed to support the growth of the digital economy in the Kingdom and contribute to the development of the telecommunications and information technology sector, with the support of our visionary leadership. stc Group we will continue its commitment to being a vital contributor to the national economy and a leading enabler of digital transformation in various sectors, enhancing the Kingdom’s position as a regional hub, in line with the targets of the Saudi Vision 2030.