stc announced the company’s preliminary financial results for the period ending at 30 September 2020. The highlights include:
stc’s revenues for the 3rd quarter reached SR 14,881m with an increase of 5.43% compared to the corresponding quarter last year. For the 9 months period of 2020, the revenues reached SR 43,737m an increase of 6.41%.
The net profit for Q3 and 9 months period of 2020 compared to the comparable quarter and same period of last year increased by 0.73% & 0.70% (respectively), and it distributes SR 1 per share dividends for the 3rd quarter.
The gross profit for the 3rd quarter reached to SR 8,971m with an increase of 13.26% compared to the corresponding quarter last year. For the 9 months period of 2020, the gross profit reached SR 25,508m with an increase of 6.14%.
Operating profit for the 3rd quarter reached to SR 3,460m with an increase of 3.97% compared to the corresponding quarter last year. For the 9 months period of 2020, the operating profit reached SR 9,526m with a decrease of (5.51%).
EBITDA for the 3rd quarter reached to SR 5,788m with an increase of 10.50% compared to the corresponding quarter last year. For the 9 months period of 2020, EBITDA reached SR 16,460m with an increase of 1.12%.
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 Q3 2020, representing SR 1 per share.
Commenting on these results, Eng. Nasser bin Sulaiman Al-Nasser, stc Group CEO, indicated that the company’s results for Q3 and the 9 month period came in line with expectations, where the company was able to grow its top line by 5.43% and 6.41% (respectively).
“As far as KSA operation is concerned, Consumer Business Unit revenue has grown as a result of 25.2% increase in FTTH and 8.5% increase in broadband subscribers, in addition to a 10.1% increase in data revenue for the current period compared to the previous period (9M). Further, Enterprise Business Unit revenue witnessed a growth due to the increased demand on the company’s products and our ability to rapidly meet clients’ need. Moreover, the Wholesale Business Unit was also able to achieve a growth in its top line mainly due to an increase in international revenue.”
Mr. Al-Nasser also emphasized that Saudi Arabia’s digital infrastructure allowed business to continue with great success across vital sectors in 2020, reflecting a significant leap in the ICT sector.
Mr. Al-Nasser also pointed out that the opportunity has become available to benefit more from 5G technologies due to its linkage with artificial intelligence, big data analytics, cloud computing and the internet of things. The pandemic proved that the communications and information technology sector is the main enabler of various industries and sectors.
stc affirms its commitment to be a key enabler of digital transformation in accordance with the Kingdom's ambitious vision 2030 and the National Transformation Plan 2020.
“We look forward to a bright future for the ICT sector to prompt the prosperity and development of our precious homeland and the future of its generations.”