Saudi Telecom Company (stc) announces its annual consolidated financial results for the year ended 31-12-2023.
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 72,337 | 67,432 | 7.27 | ||
| Gross Profit (Loss) | 37,804 | 37,393 | 1.1 | ||
| Operational Profit (Loss) | 14,200 | 15,088 | -5.88 | ||
| Net profit (Loss) | 13,295 | 12,171 | 9.23 | ||
| Total Comprehensive Income | 13,139 | 12,840 | 2.33 | ||
| Total Share Holders Equity (After Deducting the Minority Equity) | 78,985 | 73,500 | 7.46 | ||
| Profit (Loss) per Share | 2.67 | 2.44 | |||
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year | stc achieved the highest revenues in its history, increasing by SAR 4,905m as compared to the last year, mainly attributed to the increase in commercial unit revenues by 5.1%, carriers and wholesale unit revenues by 1.4% in stc KSA, and the subsidiaries revenues also increased by 23.9%. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The increase in net profit for the year 2023 by SAR 1,124m as compared to the last year was mainly attributed to the following:
- The increase in revenues by SAR 4,905m, that was offset by an increase in cost of revenues by SAR 4,495m, which led to an increase in gross profit by SAR 410m, noting that cost of revenues last year was positively impacted by the reversal of contingent liability provision in an amount of SAR 1,079m.
- The increase in revenues in addition to stc’s continued investment in new domains in accordance with stc’s strategy, and what these investments expansion entails in terms of increasing operating expenses especially in the start-up phase for the companies associated with these investments, resulted operating expenses to increase by SAR 1,298m.
- The booking of total other income (expenses) in an amount of SAR 595m as compared to SAR (1,618m), mainly due to:
1. The increase in finance income by SAR 910m. 2. The booking of net share in results and impairment of investments in associates and joint ventures in an amount of SAR 53m as compared to an amount of SAR (1,212m) mainly as a result of booking an impairment provision related to BGSM investment in an amount of SAR (1,259m) in the last year. 3. The increase in net other gains by SAR 1,084m mainly as a result of booking gains from AlKhobar land sold with an amount of SAR 1,296m. 4. This is despite of: (a) The increase in finance cost by SAR 574m. (b) The increase in cost of early retirement program by SAR 497m.
- Zakat and income tax expense increased by SAR 292m. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | None |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to conform with the classification used for the year ended 31 December 2023. |
| Additional Information | Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) for the year 2023 amounted to SAR 24,683m as compared to SAR 25,079m for the last year, with a decrease of (1.58%).
The total number of Treasury shares related to the Employees Stock Incentives Plan stood at 15,493,743 shares at the end of 2023 and those shares are not entitled for any dividends distribution. As a result, basic earnings per share (EPS) was calculated based on the weighted average number of ordinary shares in a total of 4,983,652 shares (in thousand) at the end of 2023.
For more information, please refer to the Investor Relations press release attached to the announcement. |
| Attached Documents |  |
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