STC’s revenues hit record high in Q1

Saudi Telecom Company (STC)’s first quarter revenues hit a record high of 7.5 percent, reaching $4.9 billion, as its commercial unit and diversified investment portfolio shows a strong performance, the company announced on Wednesday.

STC’s Q1 revenue increase follows a 1.8 percent increase in commercial unit revenues, as mobility segment revenue increased by 2.4 percent, and the Carrier & Wholesale unit increased by 0.4 percent.

The company’s subsidiaries had a year-on-year increase of 29.7 percent thanks to the diversified investments in promising fields.

The Q1 net profit of Saudi’s largest telecom operator climbed by 2.4 percent, reaching $839.4 million, the operating profit on the other hand declined by 2.4 percent. Earnings increased by 0.7 percent, reaching $1.7 billion.

“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 finetech, cybersecurity, artificial intelligence, cloud computing, and the internet of things, in line with Saudi Vision 2030,” said Olyan Alwetaid, CEO of STC.

The company is planning to distribute a total of $537.8 million, $0.11 per share, in cash dividends for Q1, said the company.

The 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.

Solutions, STC’s subsidiary, has completed the full acquisition of outsourcing company for business processes, Contact Centers Company (CCC), for $121.5 million. Through the acquisition, the company aims to grow its influence in the information and communications technology sector in Saudi Arabia.