STC reports Q4 and full year 2015 revenues
STC reports Net Income of SR 9.3 billion, with Operating Profit growth of 7.1% and 2.6% for the 4th quarter and the full year consecutively. and recommends SR 1 per share dividends for the 4th quarter.
Consolidated revenue for the year increased 11%, Gross Profit increased 8% compared to previous year, and continued with revenue growth from all sectors
Saudi Telecom Company (STC) has announced the company’s preliminary financial results for the period ending at 31 December 2015 (12 months)
|· Revenues from domestic operations for 2015 grew 9% compared to the previous year
· Revenues from the controlled international subsidiaries for 2015 grew 8% compared to the previous year
· Consolidated revenues for 2015 reached SR 50,837m, an increase of 11% compared to the previous year
· Operating profit for 2015 reached SR 11,936m, an increase of 2.6% compared to the previous year
· EBITDA for 2015 amounted to SR 19,370m, an increase of 3.8% compared to the previous year
· Operating profit for Q4 reached SR 2,554m, an increase of 7.1% compared to the same period last year
· EBITDA for the 4th quarter amounted to SR 4,459m, an increase of 6.1% compared to the same period last year
· FTTH Customer base during the 4th quarter increased 30% compared to the same period last year, and 10% compared to the immediate previous quarter
· Mobile working lines increased 4% during the 4th quarter compared to the same period last year
· Enterprise business unit overall revenues increased 16% during the 4th quarter compared to the same period last year
These financial results for the year, and In accordance with the approved dividend policy for three years starting from the 4th quarter 2015 (which remains subject to the ratification by the next General Assembly Meeting) which was announced on 11 November 2015, the Board of Directors of Saudi Telecom Co. recommended the distribution of a total of SR 2,000 million in cash dividend for Q4 2015, representing SR 1 per share.
Commenting on the results, STC Group CEO, Dr. Khaled H. Biyari, stated: “The 11% increase in Consolidated revenue and the 3.8% increase in EBITDA for the 12 months period compared to last year, confirms that STC strategy is working well. While, the decline in Net Profit for the 12 months period is mainly attributed to STC continued investments in programs that will have positive outcomes in the near future, such as Early retirement program and the disposal of old assets. Also, due to the FX losses (non-operating and non-cash) related to the significant depreciation of the Turkish Lira against the US Dollar during the 12 months period compared to the same period last year, and the two-months’ salary expenses (one-off) booked during the 1st quarter of 2015, which was made as a gesture to follow the initiative of the Honorable Royal Decree. In addition, Dr. Biyari, emphasized STC role in leading the knowledge based economy by developing platforms and solutions that contributes to increase productivity and improve institutions efficiencies allowing speedy introduction of high quality services.”
With regards to international operations, the 12 months period witnessed revenue growth of 8% in the controlled international subsidiaries compared to last year, and this is attributed mainly to the continued growth in controlled subsidiaries customer base and market shares.
Domestically, the 12 months period witnessed revenue growth of 9% from domestic operations compared to last year, as a result to the growth in all sectors revenues. STC continues with the introduction of innovative mobile services and customized offers with the appropriate smart phones that encourages mobile usage for both post-paid and pre-paid “SAWA” customers, which resulted in 4% increase in mobile working lines during the 4th quarter compared to the same period last year. This is underpinned by the Company’s customer-centric approach and its efforts to enhance the overall customers’ experience. Also, the 4th quarter witnessed continuous strong growth in data traffic over the 4G network. This is mainly attributed to the company’s continuous deployment of the 4G network and the availability of the smart phones that support 4G technology.
STC’s continues with the deployment of the fiber optic network for both business and residential. During the 4th quarter, FTTH Customer base increased 30% compared to the same period last year, and 10% compared to the immediate previous quarter. In addition, Fixed broadband customer base increased 21% compared to the same period last year, and 4% compared to the immediate previous quarter.
Enterprise business unit overall revenues increased approximately 16% during the 4th quarter compared to the same period last year, driven mainly by the 20% increase in Business sector data services revenues compared to same period last year.