1) Consolidated revenue increased by SR 524m, while cost of revenue declined by SR 516m, which led to the SR 1,040m increase in Gross profit.

2) The SR 464m increase in Operating Expenses is mainly due to the increase in the general and administration expenses by SR 205m and the increase in Depreciation and amortization expense by SR 288m which offset by a decrease in selling and marketing expenses in an amount of SR 30m.

3) Booking other expenses in an amount of SR (338m) compared to other expenses in an amount of SR (192m) mainly due to the following:

* The increase in Finance Costs by SR 145m mainly due to the increase in cost of financing and reclassification a portion of leases expenses to finance cost following the adoption of IFRS 16 starting 1st January 2019.

* The increase in cost of early retirement by SR 66m.

* An expense in an amount of SR (3m) in (Other expenses, net) compared to other income, net in an amount of SR 17m.

4) Due to the adoption of IFRS 16 starting 1st January 2019, Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) was impacted positively by SR 189m.

1) Consolidated revenue increased by SR 218m, while cost of revenue declined by SR 86m, which led to the SR 304m increase in Gross profit.

2) The SR 102m increase in Operating Expenses mainly due to the increase in Selling and marketing expenses by SR 284m and the increase in depreciation and amortization by SR 68m which offset by a decrease in general and administration expenses in an amount of SR 250m.

3) Booking other expenses in an amount of SR (338m) compared to other expenses in an amount of SR (287m), mainly due to the increase in Finance Costs by SR 80m, increase in cost of early retirement by SR 66m and a loss in an amount of SR (101m) in (Other losses, net) compared to other gain, net in an amount of SR 7m.

1 ) The SR 1,561m increase in consolidated revenue, while cost of revenue decreased by SR 448m ,which led to the SR 2,009m increase in gross profit.

2) The increase in Operating expenses by SR 789m is mainly due to the increase in general and administration expenses by SR 451m and increase in depreciation and amortization by SR 503m which offset by a decrease in selling and marketing expenses in an amount of SR 165m.

3) Booking other expenses in an amount of SR (625m) compared to other income in an amount of SR 32m mainly due to the following:

* The increase in cost of early retirement by SR 216m.

* The increase in Finance Costs by SR 212m mainly due to the increase in cost of financing and reclassification a portion of leases expenses to finance cost following the adoption of IFRS 16 starting 1st January 2019.

* An expense in an amount of SR (129m) in (Other expenses, net) compared to other income, net in an amount of SR 111m.

4) Due to the adoption of IFRS 16 starting 1st January 2019, Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) was impacted positively by SR 377m.

Commenting on the results, Eng. Nasser bin Sulaiman Al Nasser, STC group CEO, stated: STC continues to improve its performance and achieve positive results, which reflects the company's strong operational and financial capabilities, its success in implementing its strategy, and developing and diversifying its business by providing the latest integrated communication services, digital and technological solutions. As a result, revenue from various business units (BU) achieved remarkable growth in the current quarter compared to the same quarter last year due to the increase in revenue from data, Wholesale BU, and Enterprise BU supported by the innovative products offering in the field of IoT, cloud, cybersecurity and other telecommunication products and services.

Mr. Al-Nasser also emphasized on the company’s interest to improve and develop the information technology, communication infrastructure and to invest in digital economy and Cloud Computing, which will contribute to the realization of the National Transformation Plan 2020 and the Vision 2030. STC now is considered a leading company in the field of cloud computing, where the company has established several platforms that have made it the largest cloud computing service provider in the region. This comes in conjunction with the increasing demand for Cloud Computing services in the kingdom as one of the key platforms for IT and digital developments.

In addition and as part of the Integration project for infrastructure development, the company has officially launched the 5G network services in Saudi Arabia as first operator to provide this service commercially, and make it available to customers in a number of cities in the Kingdom with more than 600 5G sites. The 5G technology will play a major role in digital transformation as a key platform for future applications in the fields of IoT and artificial intelligence that will support the existence of smart cities, cybersecurity infrastructure and providing faster mobile broadband Internet in all regions of the kingdom.

Furthermore, the deployment of 5G technology will also lead to a significant social and economic positive impact and will contribute to the Kingdom’s vision and the development of its digital economy as well as its impact on key sectors such as transportation, manufacturing, logistics, security, education, health and etc.

As a part of the company's continued efforts to solidify its position among other brands, STC has won eight brand awards including the Brand Finance Award for the most valuable brand in Saudi Arabia in 2019. The report of the top 50 most valuable brands in Saudi Arabia revealed that the value of STC’s brand reached nearly USD 7 billion, with an increase of 6.7% from the previous year, maintaining the first rank for the second year in a row.