Saudi Telecommunication Company (stc), the kingdom's largest telecom operator, reported Wednesday a record $4.9 billion (SAR 18 billion) in first-quarter revenue, driven by the strong performance of its commercial unit and diversified investment portfolio.
stc Group's revenue rose 7.5% year-on-year for the first quarter of 2023, led by a 1.8% increase in commercial unit revenues in the wake of a 2.4% growth in mobility segment revenue. The Carrier & Wholesale unit also contributed to the record quarterly revenue, with a growth of 0.4%.
The Group's subsidiaries saw a 29.7% year-on-year revenue increase primarily due to diversified investments in promising fields.
The telecom giant's net profit for the first quarter of 2023 rose 2.4% year-on-year to $839.4 million (SAR 3.1 billion), while the operating profit for the year declined by 2.4% year-on-year to $1 billion (SAR 3.7 billion).
Earnings before interest, taxes, zakat, depreciation, and amortization (EBITDA) for the quarter edged up 0.7% year-on-year to $1.7 billion (SAR 6.3 billion).
Olyan Mohammed Alwetaid, CEO of stc, said the company launched its Corporate Investment Fund (CIF) in the first quarter to diversify its investment portfolio and support profitability by investing in early-stage startups in various domains, including fintech, cybersecurity, artificial intelligence, cloud computing, and the internet of things, in line with Saudi Vision 2030.
The company said it would distribute a total of $537.8 million (SAR 2 billion), or $0.11 (SAR 0.4) per share, in cash dividends for the first quarter of the year, adding that treasury shares related to the Employee Stock Incentives Plan, which reached 17,821,798 shares at the end of the quarter, were not entitled to any dividends distribution. The dividend distribution will take place on June 7.
Solutions by stc, a subsidiary of the Group, completed the full acquisition of Contact Centers Company (CCC), an outsourcing company for business processes, for $121.5 million (SAR 450 million). Through the acquisition, the Group aims to grow its influence in the information and communications technology sector in Saudi Arabia.
Also, the company entered the European market through its subsidiary TAWAL by finalizing a $1.3 billion (SAR 5 billion) acquisition of United Group's three telecom tower assets.
The Group signed over 40 agreements in the global technology conference LEAP23 hosted by the kingdom during the quarter.
