Saudi Telecom Co. announces the interim consolidated financial results for the period ending on 30-09-2017 (Nine Months)
| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) | 2,621 | 2,217 | 18.22 | 2,377 | 10.27 |
| Gross profit (loss) | 7,650 | 7,117 | 7.49 | 7,283 | 5.04 |
| Operational profit (loss) | 2,954 | 2,403 | 22.93 | 2,602 | 13.53 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) | 7,525 | 6,816 | 10.4 |
| Gross profit (loss) | 21,967 | 21,664 | 1.4 |
| Operational profit (loss) | 8,161 | 8,123 | 0.47 |
| Earning or loss per share, Riyals | 3.76 | 3.41 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The SR 404m increase in net profit for the 3rd quarter compared to the comparable quarter last year is attributed mainly to the following: 1)The SR 1,724m decrease in cost of revenue compared to the comparable quarter last year, despite the SR 1,191m decrease in revenues compared to the comparable quarter last year, gross profit for the 3rd quarter increased by SR 533m compared to the comparable quarter last year. 2)The SR (175m) increase in Total Other Expenses and Income during the quarter compared to the comparable period last year. |
| Reasons of increase (decrease) for period compared with same period last year | The net profit for the 9 months period increased by SR 709m compared to the comparable period last year, mainly due to the following: 1)The SR 2,102m decrease in cost of revenue during the 9 months period compared to the comparable period last year, despite the SR 1,800m decrease in revenues compared to the comparable period last year, gross profit for the 9 months period increased by SR 303m compared to the comparable period last year. 2)The SR265m increase in Total operating expenses during the 9 months period compared to the comparable period last year, and this is mainly due to the increase in selling & marketing expenses and depreciation & amortization of SR 149m and SR 111m consecutively compared to the comparable period last year. 3)The booking of SR 57m for Total Other Expenses and Income for the 9 months period compared to SR (586m) for the comparable period last year, this is attributed mainly due to the following: -The SR 201m increase in the early retirement program cost during the 9 months period compared to the comparable period last year . -The SR 68m decrease in finance income compared to the comparable period last year. -The booking of SR 82m for Other Income and (Expenses),net for the 9 months period compared to SR (452m) for the comparable period last year. -The booking of SR 250m for Share of gains from investments in associates and joint ventures, net during the 9 months period compared to losses of (SR 5m) for the same period last year. -The SR85m decrease in Other losses, net during the 9 months period compared to the comparable period last year. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The SR 245m increase in net profit for the 3rd quarter compared to the immediate prior quarter is attributed mainly to the following: 1)The SR 735m decrease in cost of revenue compared to the immediate prior quarter, despite the SR 367m decrease in revenues compared to the immediate prior quarter, gross profit for the 3rd quarter increased by SR 368m compared to the immediate prior quarter. 2)The booking of SR (107m) for Total Other Expenses and Income during the 3rd quarter compared to SR 7m for the immediate prior quarter. |
| Reclassifications in quarterly financial results | The interim condensed consolidated financial statements for the comparative period have been represented, reclassified and categorized in accordance with the accounting policies applied in the presentation, classification and classification of the interim condensed consolidated financial statements for the current period which have been prepared in accordance with the International Financial Reporting Standards adopted in Kingdom of Saudi Arabia and Other accredited by the Saudi Organization for Certified Public Accountants. |
| Other notes | Revenue from services for the 9 months period amounted to SR 38,868m compared to SR 40,667m for the corresponding period last year, a decrease of 4.4 %, and for the 3rd quarter revenue from services reached 12,835m compared to SR 14,026m for the corresponding period last year a decrease of 8.5%. Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) for the 9 months period amounted to SR 14,229m compared to SR 14,079m for the corresponding period last year, an increase of 1.1%, and for the 3rd quarter amounted to SR 4,985m compared to SR 4,392m for the corresponding period last year, an increase of 13.5%. Total shareholder equity (excluding non-controlling interest) as 30th of September 2017, reached SR 61,668m compared to SR 60,269m as of 1st January 2016 an increase of 2.32%, and compared to SR 59,941m as of 31st December 2016 an increase of 2.88% Total comprehensive income for the 9 months period of 2017 reached SR 7,518m compared to SR 6,631m for the corresponding period last year, an increase of 13.4%, and for the 3rd quarter comprehensive income reached 2,660m compared to SR 2,151m for the corresponding period last year, with an increase of 23.7%, and compared to SR 2,342m for the immediate prior quarter with an increase of 13.6% Commenting on the results, STC Group CEO, Dr. Khaled H. Biyari, stated: The financial results for Q3 2017 were good due to the distinct growth in Enterprise and wholesales sectors revenue despite the decline in consumer revenue during the period. These good results were achieved despite the various economic and regulatory conditions in the domestic market. These good results for the period were achieved as a result to the strategy adopted by the company several years ago to focus on diversifying income sources and to start innovative programs in order to improve the efficiency of the operations through increased productivity and the operational excellence program, which is working and delivering in term of improvement in net income and margins. Therefore, net income for the 3rd quarter increased 18.2% compared to the comparable period last year, and for the 9 months period of 2017 net income increased 10.4% compared to the comparable period last year. Dr. Biyari, added that STC through its various subsidiaries works hard and steadily side by side with public and private sector in the Kingdom to establish a contemporary environment for the digital transformation in Saudi Arabia and to establish a modern environment that contribute to the spread of the digital environment. As the growth strategy adopted by the company recently sought by all means to achieve the kingdom Vision 2030 and the NTP 2020 which means entering into a big change and major transformation in the Telecom sector through new opportunities outside of traditional services. It will provide us with new opportunities outside our core business, and thus our market capitalization will rapidly increase. As an example of a new era for Sales and Distribution, (STC channels) was relaunched recently with an innovative digital vision and new spirit as an important selling and distribution arm of the group, which is an important part of the transition to digital channels in the service of our clients and providing innovative new services. This will be followed by successive steps in the near future that will bring us closer to our objectives in meeting the customers needs and achieve attractive returns for the investors. |
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