Mubasher TV
Contact Us Advertising   العربية

Saudi Telecom Company announces its interim Condensed consolidated Financial results for the period ending on 30-09-2019 ( Nine Months )

STC 7010 -1.31% 41.40 -0.55
Element List Current Quarter Similar quarter for previous year %Change Previous Quarter % Change
Sales/Revenue 14,114 13,320 5.96 13,604 3.748
Gross Profit (Loss) 7,921 7,851 0.891 8,207 -3.484
Operational Profit (Loss) 3,328 3,236 2.843 3,477 -4.285
Net Profit (Loss) after Zakat and Tax 2,746 2,643 3.897 2,848 -3.581
Total Comprehensive Income 2,692 2,588 4.018 2,164 24.399
All figures are in (Millions) Saudi Arabia, Riyals
Element List Current Period Similar period for previous year %Change
Sales/Revenue 41,103 38,748 6.077
Gross Profit (Loss) 24,032 21,953 9.47
Operational Profit (Loss) 10,081 8,769 14.961
Net Profit (Loss) after Zakat and Tax 8,344 7,674 8.73
Total Comprehensive Income 7,706 7,477 3.062
Total Share Holders Equity (after Deducting Minority Equity) 61,220 64,339 -4.847
Profit (Loss) per Share 4.17 3.84
All figures are in (Millions) Saudi Arabia, Riyals
Element List Explanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to The SR 104m increase in net profit for the 3rd quarter compared to the comparable quarter last year is attributed mainly to the following:

1) Consolidated revenue increased by SR 794m, while cost of revenue increased by SR 724m, which led to the SR 70m increase in Gross profit.

2) The SR 22m decrease in Operating Expenses is mainly due to the decrease in selling and marketing expenses in an amount of SR 219m, which offset by an increase in the general and administration expenses by SR 180m and the increase in Depreciation and amortization expense by SR 17m.

3) Booking other expenses in an amount of SR (254m) compared to other expenses in an amount of SR (291m).

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 180m.

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to The SR 102m decrease in net profit for the 3rd quarter compared to the previous quarter is attributed mainly to the following:

1) Cost of revenue increased by SR 797m, while Consolidated revenue increased by SR 510m, which led to the SR 286m decrease in Gross profit.

2) The SR 137m decrease in Operating Expenses mainly due to the decrease in Selling and marketing expenses by SR 175m, the decrease in depreciation and amortization by SR 269m which offset by an increase in general and administration expenses in an amount of SR 307m.

3) Booking other expenses in an amount of SR (254m) compared to other expenses in an amount of SR (338m).

Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to The net profit for the 9 months period increased by SR 670m compared to the comparable period last year, mainly due to the following:

1 ) The SR 2,355m increase in consolidated revenue, while cost of revenue increased by SR 276m,which led to the SR 2,079m increase in gross profit.

2) The increase in Operating expenses by SR 767m is mainly due to the increase in general and administration expenses by SR 631m and increase in depreciation and amortization by SR 520m which offset by a decrease in selling and marketing expenses in an amount of SR 384m.

3) Booking other expenses in an amount of SR (879m) compared to other expenses in an amount of SR (260m) mainly due to the following:

* Booking Finance Costs by SR (547m) compared to SR (312m) 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.

* Booking an expense in an amount of SR (133m) in Other expenses, net compared to other income, net in an amount of SR 115m.

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 557m.

Basis of the External Auditor's Opinion Unmodified opinion
Reclassification of Comparison Items Certain comparative figures have been reclassified to conform with the classification used for the period ended 30 September 2019.
Additional Information Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) for the 9 months period amounted to SR 16,279m compared to SR 14,447m for the corresponding period last year, with an increase of 12.7% and for the 3rd quarter amounted to SR 5,237m compared to SR 5,129m for the corresponding quarter last year, an increase of 2.1%.

Commenting on the results, Eng. Nasser bin Sulaiman Al Nasser, STC group CEO, stated: the increase in net profit for the 9 months period of this year compared to the corresponding period last year by 8.73%, and the increase in net profits for the third quarter compared to the same quarter the last year by 3.90%, indicates the company’s constant strong performance supported by an increase in revenue from Consumer and Wholesale business unites as well as STC’s subsidiaries.

Eng. Al Nasser added: the company today is playing a key role in enabling digital transformation, which is one of the main objectives of the Saudi Vision 2030. Not to mention, we have spared no efforts in investing and supporting innovative solutions as we have worked on developing digital payments, big data, use of cloud computing, cybersecurity, IoT and artificial intelligence to remain among the best telecommunication and information technology companies in the world.

In recognition of the company's leadership in providing digital solutions, STC recently received a certificate as one of the world's leading cloud computing services provider that was awarded by VMware, the global leader in cloud software and services, thus becoming the first internationally certified Saudi provider of cloud services. In addition, STC Solutions (STC’s subsidiary) achieved the first position in providing IT services in the Kingdom for the 4th consecutive year with a market share of 16.8% in 2018 according to IDC report, a leading marketing research company. Moreover, STC has been recognized as a 2019 Best Practices Award winner in the Business Intelligence, Visual Analytics, and Data Discovery category by TDWI, the premier source for in-depth education and research data. On top of that, STC joined the Social International Value Organization as the first telecommunication company in the Middle East to obtain membership in this global organization, which measures and analyzes social value in order to enhance and exchange the best practices in corporate social responsibility.

Continuing to the company's achievements in serving the Hajj pilgrims, STC network achieved a record numbers during the Hajj season of 1440 AH due to the efforts of the government’s various sectors and STC preparation and expansion of its 5G network in 196 locations for the first time in the holy places. In addition, the 4G network has been expanded by an additional 50% over last year. Those expansions proved their effectiveness at peak hours with a growth of traffic volume reached up to 137% compared to last year. Lastly, the 4G traffic volume (VoLTE) has grown at peak hours to more than 366% over last year.

Comments