Riyadh, Kingdom of Saudi Arabia, 20 February 2023 – stc today announced the company’s annual consolidated financial results for the period ending at 31 December 2022:
• Total revenue for the year 2022 reached SAR 67,432m with an increase of 7.02% as compared to year 2021.
• Gross profit for the year 2022 reached to SAR 37,393m with an increase of 10.65% as compared to the year 2021.
• Operating profit for the year 2022 reached to SAR 15,088m with an increase of 14.93% as compared to the year 2021.
• Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the year 2022 reached to SAR 25,079m with an increase of 9.80% as compared to the year 2021.
• Net profit for the year 2022 reached to SAR 12,171m with an increase of 7.60% as compared to the year 2021.
In accordance with the dividends distribution policy for three years period starting from the 4th quarter of 2021, which was ratified during the Ordinary General Assembly Meeting on 30-11-2021. In addition to the amendment on the dividends distribution policy, which was ratified by the Extraordinary General Assembly Meeting on 30-8-2022, by distributing an amount of SAR 0.40 per share per quarter, stc will distribute a total of SAR 1,992.87 million in cash dividends to the shareholders for the 4th quarter of 2022, representing SAR 0.40 per share as the total number of Treasury shares related to the Employees Stock Incentives Plan stood at 17,821,798 shares at the end of the fourth quarter 2022 and those shares are not entitled for any dividends distribution. The eligibility of dividends shall be for the shareholders at the close of trading on Sunday 26-02-2023 and as per the registered shareholders in stc’s shareholders registry in the Depository Center at the end of the 2nd trading day following the eligibility date. Dividend distribution date will be on Thursday 16-03-2023.
Commenting on these results, Eng. Olyan Mohammed Alwetaid, stc Group CEO, stated that 2022 was a year of successes and achievements, as the Group delivered on many initiatives and investments that had a positive and clear impact on increasing and diversifying the Group’s revenue through expanding its business in the Kingdom and the region, in addition to entering into promising and new domains. The Group sought to diversify its investments portfolio by launching a number of companies in the fields of cloud computing, internet of things and digital infrastructure. These investments are in line with the Kingdom’s Vision 2030, which will contribute to strengthening the Kingdom’s position as a main digital hub in the region and the world, and will support the Group’s profitability and growth in a sustainable manner, and in line with the Group’s vision and ambitious strategy (DARE 2.0).
Alwetaid went on to say that, stc’s recent capital increase is considered one of the largest capital increases in the Saudi stock market. This increase aims to support the Group in achieving its strategy that aimed at expansion and growth, along with maximizing the return for its shareholders, by increasing and diversifying investments and seizing the expected growth opportunities in the telecommunications and information technology sectors in the kingdom and the region.
In light of the Group’s role as a leading digital enabler in the kingdom and the region, stc Group announced that it has committed an additional $300 million on top of its original $500 million investment in STV, the largest independent technology investment firm in the MENA region. This additional investment reflects stc’s future vision and its significant contribution to the digital transformation in Saudi Arabia and beyond, as well as, it deepens the Group focus on innovation and technological development in the Kingdom and the MENA region.
As a continuation of stc’s leadership, the Group has succeeded in maintaining the first rank as the most valuable brand in the Middle East in the telecommunication sector for the third year in a row, according to Brand Finance’s Global 500 2023 report. Over the last five years, the brand’s value has increased by almost twofold, from $6.2 billion in 2017 to $12.3 billion in 2022. This achievement results from the brand’s outstanding performance in maintaining its leadership position and enhancing its commercial strength in the Kingdom and the region.
Lastly, we are in stc Group as the leading digital enabler in the kingdom and the region and due to the infinite support provided to the communication and information technology sector by our visionary government, will continue to achieve our ambitious strategy (DARE 2.0) and seek to enable the digital transformation in various sectors and grow in new paths. The Group’s diversified investments is a testimony of stc’s commitment to its strategy and our aspiration to create an integrated digital system to enrich our customers’ experience and contribute to achieving vision 2030 goals.