Kuwait Telecommunications Company (stc) held its Annual General Meeting (AGM) at the Company’s Headquarters – Olympia Mall / West Office Towers on Monday 23 March 2020, where the attendance represented 67.90% from the total shareholders.
The AGM approved the Board of Directors’ report, the Auditors’ report and the Sharia Committee’s report for the fiscal year ended on 31 December 2019.
The AGM also approved the Audit Committee report and the Corporate Governance report including the Board of Directors’ and the Executive Management’s remuneration and benefits report for the year ended on 31 December 2019 as well as approving all the other items in the AGM agenda. In addition, the AGM approved the Company’s financial statements and the Board of Directors’ recommendation to distribute cash dividends of 50 Kuwaiti fils, representing 50% of the share’s nominal value for the year ended 2019, to all the shareholders registered in the Company’s records, on the Record Date, Wednesday 8 April 2020, where the cash dividends will be distributed for the eligible shareholders on the Payment Date, Wednesday 15 April 2020.
Dr. Mahmoud Ahmad Abdulrahman , stc’s Chairman, stated, “Despite the difficult market conditions and the fierce competition in the Kuwaiti telecommunications market - one of the most competitive markets in the region- stc managed to achieve revenues of KD 293.7 mn for the year ended on 31 December 2019, with a percentage growth of 2% compared to 2018. In 2019, stc’s EBITDA recorded a growth of 6% to reach KD 82.4 mn compared to KD 77.8 mn for the same period in 2018. Meanwhile, stc’s focus on driving business efficiency was clearly reflected by the Company’s strong EBITDA margin that reached 28% in 2019 compared to 27% in 2018. As a result, stc achieved a net profit of KD 43.6 mn (earnings per share of 87 fils) in 2019 with a profit margin of 15%. Furthermore, stc’s commitment to deliver value to its shareholders is reflected by the increase in total shareholders' equity reaching KD 215.4 mn by the end of 2019, with a book value of 431 Kuwaiti fils per share."
stc has achieved these results by implementing the digital transformation strategy and offering integrated technology solutions to its customers, both individuals and enterprises. stc has also driven its business operations into new areas of sustainable growth, through a series of innovative initiatives aimed at improving operational efficiency, enhancing customer experience, as well as delivering the best services and products to meet customer needs. Furthermore, and in addition to investing in the advanced 5G infrastructure, the Company has the largest 5G network with 100% coverage of the populated areas at the end of 2019.
Dr. Mahmoud concluded, “While 2019 has marked an exceptional number of achievements for stc, illustrated in launching the new brand ‘stc’ and the 5G services commercially nationwide as well as acquiring 100% of the share capital of Qualitynet - the leading internet service provider in Kuwait - in 2020, stc intends to create new opportunities and enable digital transformation in line with the Company’s new strategy.
Free internet and unlimited local calls for stc customers
As part of its social responsibility commitment to support the community, stc provided customers with free unlimited local calls to all mobile networks, as well as free 5GB internet daily from March 22nd until April 20th.
This initiative falls in line with stc’s ongoing corporate social responsibility framework in battling the current global Coronavirus (COVID-19) outbreak, in addition to its ongoing activities focusing on health, safety and spreading awareness. stc automatically activated the unlimited local minutes to all prepaid and postpaid customers.
To activate the free 5GB internet package, stc customers are requested to send a text message on a daily basis with the code “85” to 567, for both postpaid and prepaid plans, without fair usage policy.
Throughout this critical period, and with the series of precautionary measures and instructions announced by the Kuwaiti government, stc advices all its customers and the citizens of Kuwait to comply with the government’s request, stay at home, while enjoying free local calls and internet without worry. Supporting the local community at critical times comes as a key pillar in stc’s corporate social responsibility model.
Implementing the highest safety standards
In line with stc’s commitment to streamline its operations and maintain clear communication channels with stakeholders and shareholders, the Company took extra precautions to ensure that all health and safety measures were implemented, including holding the AGM at stc’s headquarters in Olympia Mall. In addition to that, the Company shared a live stream link that is implemented on the stc website with all shareholders, media representatives and investor community to view the AGM online without needing to attend in person. This initiative was executed to enhance stc’s investor relations activities through effective communication channels with shareholders, enabling stc’s digital transformation framework.
It is worth mentioning that stc organized, launched and participated in a series of initiatives during the past period to battle the COVID-19 pandemic in Kuwait. stc recently launched its “Stay Safe” campaign which aims to raise awareness and educate the public on the current outbreak through instant news updates, important announcements and precautionary measures to consider. The Company was also amongst the first companies to stand by its customers who were placed in quarantine through its “Far Yet Close” campaign offering free unlimited voice calls to those staying at Al-Khiran Resort and Joan Resort at Julai’a. The Company had also facilitated free communication channels connecting its customers to the Ministry of Health hotlines to report any incidents or request any further assistance. stc also visited Kuwait International Airport to distribute face masks, sanitizers and information leaflets to airport staff, departing and returning passengers. The medical items distributed to all individuals were provided by AAW Pharmaceuticals in cooperation with stc.
In this regard, stc recently launched a dedicated page on its official website including the latest news articles, official announcements and precautionary instructions accessible to the public with regards to COVID-19 . Visitors will find the official social media accounts of various government entities, link to the official COVID-19 statistics website in Kuwait and other relevant information. The page also includes informative videos provided by the Ministry of Health, as well as full coverage of stc’s various initiatives to tackle the outbreak and reduce the spread of the infection.