stc announced the company’s interim consolidated condensed financial results for the period ending at 31 December 2019. Revenues for the 12 months period of 2019 reached SR 54,376m with an increase of 4.64% compared to the corresponding period last year.
Gross profit reached SR 32,407m with an increase of 6.35% compared to the same period last year while operating profit for the 12 months period of 2019 reached SR 12,484m with an increase of 1.95 %.
Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the 12 months period of 2019 reached SR 21,281m with an increase of 7.29% compared to last year. Net Profit for the 12 months period of 2019 reached SR 10,755m with a decrease of (0.23%).
Commenting on the results, Eng. Nasser bin Sulaiman Al Nasser, stc group CEO, stated that the company’s strategy to invest in new and diversified domains along with the excellent performance from all stc’s subsidiaries and business unites, supported by the increase in the number of mobile and fiber optics customers and data revenue led to an increase of 4.6% in the company’s annual revenue. Also, the cost efficiency program initiatives had a role in increasing earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) by 7.3% for the current year compared to the previous year.
In Q4 2019 stc launched the new unified brand identity in KSA, Kuwait, Bahrain and its subsidiaries. The new brand is in line with the development witnessed by the group in the field of digital transformation represented in the tracks of digital payments, media, and entertainment, and in harmony with the digital revolution and rapid changes in the communication and information technology sector. The new identity contributes in enhancing stc’s brand value as one of the most valuable brands in the Middle East in 2019, with a value of 26.6 billion riyals (USD 7.1 billion), according to the Brand Finance Index. In addition, stc has been ranked among the world’s top 50 digital companies and the first in the Middle East and North Africa in 2019 according to Forbes magazine.
In recognition of the group’s commitment to continue to lead, stc has achieved the highest average mobile internet download speed in the Kingdom (reaching to 45.4 megabyte per second) according to the government report “Meqias” issued by Communications and Information Technology Commission (CITC). This achievement is due to the continuous infrastructure investment, which resulted into the deployment of more than 2300 5G towers during 2019. The newly deployed 5G towers will have a positive impact on internet download speed during the coming period.
On the other hand, the company also continues the deployment of fiber optic network in the Kingdom, which comes as part of the National Broadband Network Initiative (NBB) and in line with its commitment towards achieving the digital initiatives of the Kingdom's 2030 vision. As a result, the number of fiber optic (FTTH) customers increased by 23% in 2019 compared to the last year, thanks to the vast fiber optics network that has reached 217,000 Km by the end of 2019.