STC reports First Quarter Revenues for 2016
STC reports Net Income of SR 2.4 billion an increase of 22%, with Operating Profit growth of 18% during the 1st quarter compared to the immediate prior quarter, and distributes SR 1 per share dividends for the 1st quarter
Consolidated revenue for the quarter increased 2.3%, and continued with revenue growth from all services
Saudi Telecom Company (STC) has announced the company’s preliminary financial results for the period ending at 31 March 2016 (3 months)
|· Revenues from domestic operations during the 1st quarter grew 2.9% compared to the same period last year
· Revenues from the controlled international subsidiaries during the 1st quarter grew 3.7% compared to the same period last year
· Consolidated revenues for the quarter reached SR 12,759m, an increase of 2.3% compared to the same period last year
· Operating profit for the quarter reached SR 3,004m, a decrease of SR 11% compared to the same period last year, and an increase of 18% compared to the immediate prior quarter
· EBITDA for the quarter amounted to SR 4,962m, a decrease of 3.8% compared to the same period last year, and an increase of 11% compared to the immediate prior quarter
· FTTH Customer base during the 1st quarter increased 39.5% compared to the same period last year, and 10.4% compared to the immediate previous quarter
In accordance with the approved dividend policy for three years starting from the 4th quarter 2015 which was announced on 11 November 2015, and have been ratified during the General Assembly Meeting on April 4th 2016, STC will distribute a total of SR 2,000 million in cash dividend for Q1 2016, representing SR 1 per share.
Commenting on the results, STC Group CEO, Dr. Khaled H. Biyari, stated: “The financial results achieved for the 1st quarter of 2016 reflects the efforts being made to constantly evolve, improve and develop the company’s strategy and operations both domestically and internationally. Revenues from services increased 2.3% during the 1st quarter compared to the comparable period last year. We will continue to invest in our employees, focus more on customer satisfaction and enrich their experience as part of STC strategy, by deploying cutting-edge technological resources, and investing in technology & innovative solutions that shall enable the Saudi society to elevate to new horizons in the new telecom world. This will be in parallel with the country’s transformation program which support the expansion in the new digital economy, and will enable speedy processing of all transactions, which will be more convenient for the society and contribute to improving the overall productivity. In light of the increasing importance of Telecom and technology, STC will continue to adopt initiatives to invest in unconventional telecom infrastructure through investments in networks and associated systems in order to allow smooth transformation to provide highly secured cloud computing services. All this will happen through long term productive partnerships with government institutions which will create an environment that shall encourage investments and eventually serve the end user and society in the light of increasing importance of information technology and Telecom.”
With regards to international operations, the 1st quarter witnessed revenue growth of 3.7% in the controlled international subsidiaries compared to same period last year.
Domestically, the 1st quarter witnessed revenue growth of 2.9% from domestic operations compared to same period last year. As STC continues with the introduction of innovative services and customized offers that encourage mobile usage for both post-paid and pre-paid “SAWA” customers.
STC’s continues with the deployment of the fiber optic network for both business and residential. During the 1st quarter, FTTH Customer base increased 39.5% compared to the same period last year, and 10.4% compared to the immediate previous quarter. In addition, Fixed broadband customer base increased 17.5% compared to the same period last year, and 2.3% compared to the immediate previous quarter.
Enterprise business unit overall revenues increased approximately 17% during the 1st quarter compared to the same period last year, driven by the increase in Business sector data services revenues and associated services during the quarter.