Company reports total revenue of KD 293.7mn; customer base reaches 2 million
KUWAIT CITY, Feb 3: Kuwait Telecommunications Company (stc), a subsidiary of stc Group and a world-class digital leader providing innovative services and platforms to customers enabling the digital transformation in Kuwait, announced its financial results for the full year ended on 31 December 2019, reporting a total revenue of KD 293.7 mn, while company’s net profit reached KD 43.6 mn.
Commenting on the announcement of these financial results, Eng. Maziad Al Harbi – stc’s Chief Executive Officer – stated: “company’s financial results for the year ended on 31 December 2019 witnessed a growth, were stc managed to achieve revenues of KD 293.7 mn compared to KD 287.9 mn during the last year, with a percentage growth of 2%. In 2019, stc’s EBITDA recorded a growth of 6% to reach a KD 82.4 mn compared to KD 77.8 mn for the same period in 2018. Meanwhile, EBITDA margin reached 28% in 2019 compared to 27% in 2018. As a result, stc achieved a net profit of KD 43.6 mn (earnings per share of 87 fils) in 2019 with a profit margin of 15%. These positive results have been achieved despite the continued competition in Kuwait’s Telecommunications sector – one of the most competitive markets in the region – where stc has achieved high levels of revenue in addition to enhancing the operational efficiency in order to help creating value for its customers and better returns for its shareholders. stc has achieved these results by implementing the digital transformation strategy and offering integrated technology solutions to its customers, individuals and enterprises. stc has also driven its business operations into new areas of sustainable growth, through a series of innovative initiatives aimed at improving operational efficiency, improving customer experience, as well as delivering the best services and products to meet their customers’ needs. Furthermore, and in addition to investing in the advanced 5G infrastructure, the company has the largest 5G network with 100% coverage of the populated areas at the end of 2019. Moreover, stc’s customer base has reached 2.0 mn customers at the end of December 2019”.
Al Harbi added: “stc’s financial results reflected its capability to compete and enhance its position as the second greatest telecom operator in the Kuwaiti Telecom market in terms of its market share of revenue. Due to its secure and stable financial policy, stc continued to implement the cost optimization program that was adopted by the company during the previous year in order to achieve the best results, which will, in turn, enhance company’s profitability through adopting a balanced and effective financial policy in the operational and capital expenditures. Shedding the light on company’s financial position as of 31 December 2019, company’s total assets reached KD 391.1 mn where total shareholders’ equity reached KD 215.4 mn, with a book value of 431 Kuwaiti fils per share. In addition, stc has a strong financial solvency position, which is considered one of the best amongst the telecom companies across the Middle East. Meanwhile, stc’s Board of Directors has recommended distributing cash dividends to respective shareholders of 50 Kuwaiti fils representing 50% of the share’s nominal value for the year ended 2019, subject to the approval of the Ordinary General Assembly of the company”.
Al Harbi concluded, “2019 has marked an exceptional number of achievements for stc. We have successfully launched our new brand ‘stc’ and the 5G services commercially nationwide. stc has also launched the “Let’s go further” campaign which involves introducing company’s new concept and strategy of boosting digital services, offering new innovative digital solutions and enhanced service offerings that go beyond the traditional telecom services. This campaign also aims to enrich the customer experience, create additional communication channels and a dynamic approach that is dedicated to catering with customers’ needs. The campaign also highlights implementing innovative services and products offerings in order to elevate the Company to obtain and retain its leading position in the market. Furthermore, acquiring 100% of the share capital of Qualitynet – the Internet Service Provider General Trading and Contracting Company in Kuwait – is considered one of the extraordinary achievements of stc during 2019. In light with the ongoing changes in the global economic markets, and the increasing competitiveness in providing leading services in domestic as well as regional digital communications and services, stc has made every effort to enhance the efficiency of its business model and operations, adding value to all stakeholders, including customers, investors and shareholders. In this regard, stc has been working on offering a number of unique as well as innovative products and services, thus supporting its current position as a leader in the Kuwaiti Telecom market”.