stc announced the company’s preliminary financial results for the period ending at 30 June 2021.
Net profit for the 2nd quarter stood at SR 2.82 billion with an increase of 3.56% compared to SR 2.72 billion in Q2-20. For the first half of 2021, the net income reached SR 5.77 billion with an increase of 2.41% from SR 5.63 billion in H1-20.
Revenues for the 2nd quarter reached SR 15,899m with an increase of 6.56% compared to the corresponding quarter last year. For the first half of 2021, the revenues reached SR 31,594m an increase of 9.49%.
The company has approved distribution of SR 1 per share dividends for the 2nd quarter, totaling of SR 2,000 million.
Gross profit for the 2nd quarter reached SR 8,352m with an increase of 0.13% compared to the corresponding quarter last year. For the first half of 2021, the gross profit reached SR 16,909m with an increase of 2.25%.
Operating profit for the 2nd quarter registered SR 3,250m with an increase of 6.14% compared to the corresponding quarter last year. In H1 2021, the operating profit reached SR 6,732m with an increase of 10.98%.
Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the 2nd quarter amounted SR 5,627m with an increase of 5.34% compared to the corresponding quarter last year. For the first half of 2021, the Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) reached SR 11,468m with an increase of 7.47%.
Commenting on the results, Eng. Olayan Mohammed Alwetaid, stc Group CEO, stated that the company has achieved the highest quarterly and semi-annual revenues in its history, which is a direct result of the distinguished performance of all business units, and the group's subsidiaries, which reflected positively on the financial results. The Enterprise business unit achieved an increase in revenues for the period by 29.3% thanks to the company's ability to provide innovative products and services that meet the needs of the public and private sector. As for the Wholesale business unit, revenues for the period increased by 5.5%, as a result of stc’s investments in infrastructure, which is starting to positively reflect on the unit’s results. The Consumer business unit also contributed positively to the results for the period as a result of an increase in operating lines by 3.4%, an increase in fixed wireless access subscribers by 6.1%, and an increase in demand for fiber-optic services, which led to an increase in the subscriber base by 20.8%.
stc, through the digital payments company “stc pay”, was able to obtain the license approval of the Council of Ministers on 12-11-1442 AH corresponding to 22-06-2021 for stc pay to become one of the first digital banks in the Kingdom of Saudi Arabia. This reflects stc’s success in achieving its ambitious strategy "Dare 2.0", which aims to grow in new, unconventional paths and play a pivotal role in digital transformation and digital empowerment for the public and private sectors and in line with the goals of the Kingdom's Vision 2030 towards a prosperous and diversified economy.
The Arabian internet and Communications Services Company "solutions by stc" obtained the approval of the Capital Market Authority to offer 24,000,000 shares for public subscription representing (20%) of its shares. This will enable the company to achieve its strategy and goals that seek to develop and the information technology and digital services sector. The offering of Solutions by stc is also in line with stc's strategy, which aims to expand the scale and scope and maximize returns for shareholders by accelerating the performance of assets.
Lastly and despite all the challenges faced due to Covid-19, stc has succeeded in maintaining its outstanding performance and achieving growth in most of its sectors.