Riyadh: Saudi Telecommunications Company (stc) revenues for the first quarter of 2024 increased by 7.76 per cent compared to the previous quarter and by 5.07 per cent compared to Q1-2023, reaching 19.1 billion Saudi riyals.
The revenue growth was mainly attributed to the increase in STC KSA's revenues by 1.2 per cent, driven by the rise in commercial unit revenues by 6.7 per cent and carriers and wholesale unit revenues by 5.7 per cent, which offset the decline in business unit revenues. stc's subsidiaries' revenues also increased by 13 per cent.
The release said that Gross Profit for the first quarter grew by 5.13 per cent compared to the previous quarter and by 1.65 per cent compared to the comparable quarter last year, reaching 9.386 billion riyals.
Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the first quarter of 2024 increased by 16.30 per cent, compared to the previous quarter and by 2.07 per cent, compared to Q1-2023, reaching 6.474 billion riyals.
Net Profit for the first quarter of 2024 increased by 44.50 per cent compared to the previous quarter and by 5.69 per cent compared to Q1-2023, reaching 3.286 billion riyals.
stc distributed 0.40 riyals per share for the first quarter of 2024 according to the dividend distribution policy approved by the General Assembly.
stc Group and the Public Investment Fund (PIF) announced the signing of final agreements through which PIF will acquire a 51 per cent stake in the Telecommunications Towers Company (TAWAL). Under this deal, TAWAL was valued at 21.94 billion riyals.
stc Group and PIF will merge the two companies, TAWAL and Golden Lattice Investment Company, into a new entity to create a leading national company in the telecommunications sector. The newly merged entity will include the assets of TAWAL and Golden Lattice Investment Company. Stc Group will own a 43.06 per cent share of the newly merged entity.
stc Bank, the Group's subsidiary, has obtained the approval of the Saudi Central Bank (SAMA) for the beta launch of stc Bank. "This soft launch also represents an important transitional phase before the full launch to all customers, which is expected to be later this year," the release said.
stc Group CEO Olayan Mohammed Alwetaid said that during the holy month of Ramadan, stc's network recorded the highest volume of voice calls in the Holy Mosque of Mecca's history, an increase of 35 per cent compared to last year. More than 55 per cent of voice calls passed through modern digital voice technologies for the first time.
