Saudi Telecommunication Company (stc), the kingdom's largest telecom operator, reported Monday a record annual revenue of $18 billion (SAR 67.4 billion) for 2022, with a 7% year-on-year increase, driven by the company's expansions and diversified investment portfolio.
The telecom giant's annual net profit in 2022 surged 7.6% to $3.2 billion (SAR 12.2 billion) compared to a year earlier, while the operating profit for the year hit $4 billion (SAR 15.1 billion), up 14.9% year-on-year. Earnings before interest, taxes, zakat, depreciation, and amortization (EBITDA) for 2022 jumped 9.8% to $6.7 billion (SAR 25.1 billion) year-on-year.
Olyan Mohammed Alwetaid, stc group CEO, said the company managed to diversify its revenue by expanding its business in Saudi Arabia and the region. He added that the group launched several companies in 2022 to diversify its investment portfolio and support its profitability, including in the fields of cloud computing, the internet of things, and digital infrastructure, in line with Saudi Vision 2030.
The company said it would distribute a total of $531.4 billion (SAR 1.9 billion), or 11 cents (SAR 0.4) per share, in cash dividends to shareholders for the fourth quarter of 2022, adding that treasury shares related to the Employee Stock Incentives Plan, which reached 17,821,798 shares at the end of the fourth quarter, were not entitled to any dividends distribution. The dividend distribution will take place on March 16.
In October, stc announced it would commit an additional $300 million (SAR 1.1 billion) on top of its original $500 million (SAR 1.9 billion) investment in STV, one of the largest independent technology venture capital funds in the region which has been investing in a portfolio of technology companies across sectors like logistics, e-commerce, and fintech. The fund aims to create unicorns on the back of its investment in champions across sectors that are growing rapidly.
