Saudi Arabia’s stc Group has recently released its financial results for the first quarter of 2024, which showcased robust performance across key metrics. The group’s revenues for Q1 saw a 7.76 percent increase compared to the previous quarter and a 5.07 percent annual rise to SAR19.1 billion ($5.09 billion).
stc attributes this growth in revenue to the 1.2 percent increase in stc KSA’s revenues. Its commercial unit revenues rose 6.7 percent while its carriers and wholesale unit revenues were up 5.7 percent. This offset the decline in the business unit’s revenues. In addition, the group’s subsidiaries marked great growth during Q1 with their revenues increasing 13 percent.
Profits and earnings
stc’s gross profit saw a 5.13 percent quarterly increase and a 1.65 percent annual increase to SAR billion. Meanwhile, net profit surged by 44.50 percent compared to the previous quarter, reaching SAR3.28 billion.
As for earnings before interest, taxes, zakat, depreciation, and amortization (EBITDA), the figure saw a 16.30 percent quarterly increase and a 2.07 percent annual increase to SAR6.47 billion.
For Q1 of 2024, stc will distribute SAR0.40 per share, in line with its dividends distribution policy approved by the General Assembly.
Strategic partnerships and initiatives
Beyond financial performance, stc Group demonstrated its strategic foresight through key partnerships and digital initiatives. Olayan Mohammed Alwetaid, stc Group CEO, stated that the acquisition of a 51 percent stake in the Telecommunications Towers Company (TAWAL) by the Public Investment Fund (PIF) represents a strategic move to consolidate the company’s growth in the telecommunications sector. Moreover, stc Bank’s beta launch, approved by the Saudi Central Bank (SAMA), signals the company’s advancement into fintech, aligning with the goals of Vision 2030.
Read: Saudi Arabia’s PIF and stc Group sign deal to form region’s largest telecom tower company
Market leadership
Amidst these milestones, stc Group reaffirmed its position as the most valuable telecom brand in the Middle East, setting the stage for its continuous market leadership. The company’s commitment to innovation is evident through its partnerships with industry giants like Huawei, Ericsson and Samsung, aimed at accelerating digital transformation in the region.
The group’s subsidiary, solutions, also signed a memorandum of understanding with the French Devoteam Group. This partnership aims to cooperate in researching and exploring regional and global investment opportunities in the field of information technology. This came after the completion of solutions’ acquisition of a 40 percent stake in Devoteam Middle East.
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