stc Sees Significant Financial Growth in 2022’s Third Quarter and Nine-Month Period

stc has announced its results for the third quarter and the nine-month period of 2022 wherein the increase in the revenues of the stc group during the third quarter and the nine-month period of the year 2022 compared to the quarter and the same period of the previous year by 4.66% and 6.48%, respectively.

Following are some more highlights of the same:

• Revenues increased during the third quarter by 4.66% compared to the same quarter of the previous year, reaching 16,468 million Saudi riyals. Revenues increased by 6.48% for the nine-month period of the year 2022 AD to reach 50,398 million Saudi riyals. 
• The total profit increased during the third quarter by 19.97% compared to the same quarter of the previous year to reach 10,040 million Saudi riyals, and for the nine months of the year 2022 AD, the total profit amounted to 28,365 million Saudi riyals, an increase of 12.21%.
• The operating profit increased during the third quarter by 43.36% compared to the same quarter of the previous year to reach 4,576 million Saudi riyals, and for the nine months of the year 2022 AD, the operating profit amounted to 12,120 million Saudi riyals, an increase of 22.13%.
• Profit before depreciation, amortization, interest, zakat and taxes (EBITDA) increased by 26.17% during the third quarter, compared to the same quarter of the previous year, to reach 7,073 million Saudi riyals, and for the nine months of 2022 AD, EBITDA amounted to 19,577 million riyals Saudi Arabia, an increase of 14.67%.
• The net profit increased during the third quarter by 21.10% compared to the same quarter of the previous year to reach 3,541 million Saudi riyals, and for the nine months of the year 2022 AD, the net profit amounted to 9,413 million Saudi riyals, an increase of 8.22%.

In line with the policy of distributing profits for a period of three years, which started from the fourth quarter of 2021 AD, which was approved during the Ordinary General Assembly meeting on 11-30-2021 AD. In addition to the amendment to the dividend distribution policy, which was approved in the Extraordinary General Assembly on 30-8-2022, by distributing 0.40 Saudi riyals per share for each quarter, stc will distribute cash dividends of 1,996.15 million Saudi riyals to shareholders for the quarter. The third of the year 2022 AD, which is equivalent to 0.40 Saudi riyals per share, as the total number of treasury shares that are not entitled to profits and allocated to the employee incentive shares program amounted to 9,629,357 shares until the end of the third quarter of 2022 AD. The eligibility for dividends will be for the shareholders who own shares at the end of trading on Wednesday 08-4-1444 AH corresponding to 02/11/2022 AD and those who are registered in the stc shareholders register at the Depository Center at the end of the second trading day following the due date.

Commenting on these results, Eng. Olayan bin Mohammed Al Wetaid, CEO of stc Group, indicated that we are – praise be to God – proud of the positive financial results achieved by the group, as a result of its commitment to its comprehensive strategy and its investments in multiple and diversified fields, which had a clear and tangible impact on profit growth and achieving a sustainable return. to the company’s shareholders.

The president also added, that during the third quarter of this year, the general assembly of stc agreed to increase the company’s capital to 50 billion Saudi riyals, which is the largest capital increase in the history of the Saudi stock market, making the company the second largest listed company in terms of capital . This increase aims to support the group in achieving its strategy of expansion and growth, and maximizing the total return for shareholders, by increasing and diversifying investments and seizing the expected growth opportunities in the telecommunications and information technology sectors in the Kingdom of Saudi Arabia and the region.

In light of the group’s role as a leading digital enabler in the Kingdom and the region, a cooperation was announced between stc Group and the Greek telecommunications company TSSA to build a data corridor extending from the Kingdom to Europe via a modern, high-capacity network of terrestrial and undersea optical fibers that will connect Europe with Asia. This project reflects the ambition of stc Group and its ability to provide communication and hosting technologies and raise the capabilities and capacities of data centers to meet the needs of the markets of Asia, Europe and the rest of the world and link these vital economies through the Kingdom of Saudi Arabia’s distinguished and strategic geographical location. 

stc group has lowered the new marine communication cable “Saudi Vision Cable” in the Red Sea through its first landing station in Jeddah. The Saudi Vision cable, which takes its name from the Kingdom’s Vision 2030, extends over a distance of 1,160,000 meters and is the first high-capacity submarine cable that provides seamless connectivity and multi-access points in the Red Sea region, and provides high-speed access across the borders of the Kingdom of Saudi Arabia through four The landing stations are Jeddah, Yanbu, Duba, and Haql. The submarine cable, wholly owned by stc, reflects the group’s leadership in providing comprehensive and advanced international telecommunications services through a strong and diversified infrastructure.  

Referring to what was previously announced about the group’s intention to establish a main digital center “MENA HUB”, stc Group launched “Center3” the regional digital center for the Middle East and North Africa, which is considered one of the group’s most important and largest projects. The new company will own the digital infrastructure assets, which include data centers, submarine cables, international points of presence and Internet exchange points. The new company aims to develop digital business and enhance investment opportunities in international communication services and data centers by providing the latest communication and hosting technologies and raising the ability of data centers to meet the needs of the markets of Asia, Africa, Europe and the rest of the world.

Finally, with the launch of “Center3”, stc Group will have developed an integrated digital system by launching a number of companies in different and diverse fields, including cybersecurity, artificial intelligence, cloud computing, Internet of things and digital infrastructure. These achievements will contribute to transforming the digital industry in the Kingdom into a leading industrial power and a global logistics center that connects the business environment and the local community digitally through an advanced infrastructure and contribute to the prosperity and growth of the digital economy in the Kingdom in light of the Kingdom’s Vision 2030.