The operating expenses increased by SR 919m due to an increase in selling and marketing expenses in an amount of SR 524m as a result of the increase in doubtful debt provision in the current quarter, and the increase in depreciation and amortization by SR 419m.

During the current quarter, an amount of (SR 338m) was recognized in other income and (expenses) as compared to (SR 254m), mainly due to the increase in the cost of early retirement by (SR 113m).

The operating expenses increased by SR 233m, due to an increase in both selling and marketing expenses by SR 156m and depreciation and amortization by SR 49m.

During the current quarter, an amount of SR (338m) was recognized in other income and (expenses) as compared to SR (48m), mainly due to the following:

• The booking of net other losses in an amount of (SR 70m), as compared to net other gains in an amount of SR 131m.

• The increase in the cost of early retirement by (SR 99m).

The operating expenses increased by SR 2,031m, mainly due to an increase in selling and marketing expenses in an amount of SR 1,007m which was mainly as a result of the increase in doubtful debt provision in the current period, and the increase in both depreciation and amortization expenses in an amount of SR 736m and general and administration expenses in an amount of SR 289m.

During current period, an amount of (SR 208m) was recognized in other income and (expenses) , as compared to SR (879m), mainly due to the gains booked with respect to selling the company’s direct share in Careem after completing Uber’s acquisition.

The total number of Treasury shares related to the Employees Stock Incentives Plan stood at 1,785,384 shares at the end of the third quarter 2020 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 an amount of 1,999,364 shares (in thousand) for the 3rd quarter and 9M period 2020.

Commenting on these results, Eng. Nasser bin Sulaiman Al-Nasser, stc Group CEO, indicated that the company’s results for Q3 and the 9 month period came in line with our expectations, where the company was able to grow its top line by 5.43% and 6.41% (respectively). As far as KSA operation is concerned, Consumer Business Unit revenue has grown as a result of 25.2% increase in FTTH and 8.5% increase in broadband subscribers, in addition to a 10.1% increase in data revenue for the current period compared to the previous period (9M). Further, Enterprise Business Unit revenue witnessed a growth due to the increased demand on the company’s products and our ability to rapidly meet clients’ need. Moreover, the Wholesale Business Unit was also able to achieve a growth in its top line mainly due to an increase in international revenue.

Mr. Al-Nasser also emphasized that Saudi Arabia’s digital infrastructure allowed business to continue with great success across vital sectors in 2020, reflecting a significant leap in the ICT sector. According to a report published by the International Telecommunication Union (ITU), the Kingdom has been considered to be among the best countries around the world to successfully leverage technology in dealing with the consequences of the Coronavirus pandemic. The Kingdom was also able to cope with the effects of the pandemic, from increased data consumption to a higher demand on digital services. Furthermore, Saudi Arabia moved up 40 places in the UN E-Government Survey’s ICT digital infrastructure index, ranking 8th among G20 nations and 27th globally.

On a different note and for the fourth consecutive year, stc won the award for the fastest mobile network speed, and the award for the best mobile coverage provided by a telecommunication company in the Kingdom. As well as, winning the award for the fastest 5G network, granted by Ookla, owner of the Speedtest platform. Winning these awards is a testament of stc's commitment to offer the best services to its customers in the Kingdom, elevate community services, and offer the highest level of customer experience, as the company has doubled the capacity of its network, and also doubled the delivery operations for services and products through mystc platform.

Mr. Al-Nasser also pointed out that, the opportunity has become available to benefit more from 5G technologies due to its linkage with artificial intelligence, big data analytics, cloud computing and the Internet of things. The pandemic proved that the communications and information technology sector is the main enabler of various industries and sectors.

stc affirms its commitment to be a key enabler of digital transformation in accordance with the Kingdom's ambitious vision 2030, and the National Transformation Plan 2020, where we look forward to a bright future for the ICT sector to prompt the prosperity and development of our precious homeland and the future of its generations.