stc profits grow by 12% in the first quarter of 2024, confirming its leadership position

stc Group, a leading enabler of digital transformation in the region, announced its preliminary financial results for the first quarter of 2024, demonstrating strong financial and operational performance that reflects the success of its ambitious strategy. The Group recorded a notable 12% growth in net profit, excluding non-recurring items, compared to the same quarter of the previous year, underscoring the robustness of its business model and its ability to achieve sustainable growth.

Financial performance details for the first quarter of 2024

According to the official statement issued by the group, the most prominent financial indicators for the period ending March 31, 2024 were as follows:

• Revenues: Increased by 3.8% to reach SAR 19,939 million, compared to SAR 19,209 million in the same quarter of last year, driven by growth in various business sectors.
• Gross profit: Recorded a growth of 7.4% to reach 9,772 million riyals.
• Operating profit: jumped by 11.0% to reach 3,978 million riyals.
• Earnings before interest, depreciation, amortization, zakat and taxes (EBITDA): increased by 7.1% to reach SAR 6,557 million.
• Net profit (excluding non-recurring items): Achieved a growth of 12.0% to reach 3,696 million riyals.

Based on these positive results, and in line with the approved dividend policy, the Board of Directors recommended a cash dividend of SAR 0.55 per share for the first quarter of 2024.

Strategic context: stc as a key driver of Saudi Vision 2030

These strong results come within the context of stc Group’s pivotal role in achieving the goals of Saudi Vision 2030. The Group is no longer just a traditional telecommunications operator, but has transformed into a fully integrated digital enabler driving innovation in multiple areas such as cloud services, cybersecurity, digital payments (Fintech), and the Internet of Things. The announced figures reflect the success of the Group’s “DARE 2.0” strategy, which focuses on expanding the range of services, growing assets, and delivering a world-class customer experience.

The importance and expected impact of the results

The continued growth in stc's profits not only strengthens investor confidence in the Saudi financial market but also solidifies the Kingdom's position as a leading regional digital hub. The Group is investing heavily in developing digital infrastructure, including expanding 5G networks, building massive data centers, and laying international submarine cables, which contributes to attracting foreign investment and boosting the national digital economy. Regionally, stc continues its strategic expansion into new markets, enhancing its brand and influence as a key player in the telecommunications and information technology sector in the Middle East and North Africa.

Commenting on the results, Eng. Alian bin Mohammed Al-Wutaid, CEO of stc Group, affirmed that the Group began the year with strong operational and financial momentum, demonstrating its ability to translate its strategic directions into tangible results. He noted that this performance is the product of a successful balance between investing in future growth opportunities and enhancing operational efficiency, with the aim of achieving more sustainable and competitive long-term growth.