KD 351.4m stc revenues for year ended Dec 31, 2023 with KD 32.7m net profit
Revenue increased by 4.5% to reach KD 351.4m, the highest since inception
Kuwait Telecommunications Company (stc), a world-class digital leader providing innovative services and platforms to customers and enabling the digital transformation in Kuwait, announced its financial results for financial year ended Dec 31, 2023, highlighting the most significant achievements, financial and operational performance in addition to the social initiatives made by the company during 2023.
In this regard, Eng Maziad Al-Harbi, stc’s Chief Executive Officer, has stated that: “In 2023, Kuwait Telecommunications Company (stc) achieved numerous financial and operational milestones represented in expanding its business model and efficiently managing its internal operations. stc’s implementation to its corporate strategy, which was designed to keep pace with the rapid developments in the telecommunications sector has played a vital role in its success, and thus, has contributed in meeting the shareholders’ aspirations.
Driven by the importance of digital transformation and innovation in shaping the global economy, the company has successfully embraced the latest technologies, including 5G services, Internet of Things (IoT), artificial intelligence (IA), and data analytics to ensure its comprehensive and integrated technical services and solutions are at the forefront of all the available offerings in the telecommunications market through implementing its corporate strategy based on expanding its operations. stc’s constant focus on developing solutions specifically designed to meet the evolving needs of both individual and corporate customers reflects its unwavering commitment to better serve its customers. This represents one of the key pillars of its corporate strategy “LEAD” for the years 2023 to 2025,which enabled the company - during the first year of implementation - to achieve remarkable strong results, which, in turn, contributed to strengthening stc’s position as a leader in the ICT market. The company’s expansions along the past few years demonstrate stc’s efforts to provide the best integrated solutions in the communications and networks field, along with the advanced technical solutions, fixed services, broadband, integration systems, and cloud services for both individual and corporate customers, leveraging its highly advanced network and the expertise of its subsidiaries specializing in fixed communication services as well as ICT, in addition to providing the enterprise sector with innovative, comprehensive, and high-quality solutions. Therefore, stc has managed to maintain its competitive position in the telecommunications and ICT markets in Kuwait, whereby our primary focus is the implementation of a productive and digital operating model for stc, with our unwavering commitment to enhance profitability, increase the potential of our employees, enhance their future professional skills and work on the sustainability of the company, in addition to the hard work that our subsidiaries are eager to do with their ability to deliver solutions in the telecommunications and ICT markets.
stc is committed to innovation and excellence through its investments in the latest technologies to enhance its services and maintain its leading position in the rapidly evolving telecommunications sector, whereby stc’s workforce has the ability to adapt and proactively face challenges. We also emphasize the significance of the Company’s strategic partnerships and acquisitions that were executed throughout the previous years, which played a notable and effective role in capturing growth opportunities in the telecommunications and ICT sectors, especially in the enterprise sector. These initiatives have propelled stc towards new horizons of sustainable growth by delivering high-quality products, services, and innovative solutions in the enterprise sector in Kuwait.
Commenting on the announcement of stc’s financial results for the year ended December 31, 2023, Eng. Maziad Al-Harbi noted: “stc has achieved strong financial results by leveraging its technical and human capabilities in accordance with the aspirations and expectations of both its customers and shareholders, whereby, stc recorded the highest total revenue since inception to reach KD 351.4 million in the financial year ended Dec 31, 2023 with a growth rate of 4.5 percent compared to KD 336.4 million in the previous year. The expansion of the company’s operations and its focus on providing digital services to the enterprise sector through the development of its digital services and offering integrated technical solutions to companies across various sectors had the greatest impact on stc’s success. Not to mention stc’s focus on driving its operations towards new areas of sustainable growth through a series of innovative initiatives aimed at optimizing company’s operations as well as delivering high-quality services and products that cater to the market’s requirements and demand, in addition to enhancing the company’s infrastructure.”
Al-Harbi added: “These outcomes resulted in a growth of EBITDA by 3.7 percent to reach KD 85.1 million in 2023 compared to KD 82.0 million in 2022 supported by the increase in the company’s revenue. As a result, the company’s net profit reached KD 32.7 million (EPS 33 fils) in 2023, whereby, stc’s customer base reached approximately 2.3 million customers at the end of December 2023”.
Commenting on stc’s financial position as of Dec 31, 2023, Al-Harbi said: “stc’s total assets reached KD 447.7 million by the end of December 2023, while the total shareholders’ equity increased by 1 percent reaching KD 243.9 million by the end of December 2023 compared to KD 241.4 million in 2022 whereby, stc has a strong solvency position amongst the telecom companies in the Middle East.
The Board of Directors has recommended distributing cash dividends of 35 fils per share representing 35 percent of the share nominal value for the year ended 2023, subject to the approval of the Ordinary General Assembly of the company. This decision was based on stc’s confidence in the continuous advancements of its operations, the robustness of its financial position, and the strength of its cash flows.”
Al-Harbi noted: “stc is committed to periodically review and update its financial strategy, with the aim of allocating resources towards the development of its services in order to remain at the forefront of the telecommunications companies, meet customers’ needs and provide an added value to shareholders. As part of this commitment, stc has successfully implemented numerous strategic projects, supported by the digital solutions that align with the company’s strategic and financial objectives. These initiatives are designed to enhance operational efficiency, process control practice, and achieve excellence in treasury management operations.”
Regarding stc’s corporate social responsibility (CSR), Al-Harbi stated: “Supporting the community in various ways has been a longstanding commitment under stc’s extensive and sustainable corporate social responsibility (CSR) program. Considering its role as a pioneer in Kuwait’s telecommunications market. stc has implemented programs that aim to foster long-term growth focusing on key areas such as education, environmental sustainability, sports, health, youth empowerment and entrepreneurship. stc’s programs and initiatives in 2023 were diverse and sustainable, each targeting specific community needs and causes that coincided the company’s values and beliefs. These efforts were reflected through various programs in partnership with a range of key players, including government institutions and the private sector under the umbrella of “Wyak”, which focuses on supporting young entrepreneurs and startups. The second primary initiative was the educational ‘upgrade’ umbrella, which aims to contribute towards empowering the youth and supporting the local education initiatives. The last primary initiative is the ‘Because we care’, which aims to spread awareness on health and wellness, and environment.
Looking ahead, stc is set to build on the solid foundation established through its comprehensive and sustainable CSR program over the years. stc envisions a sustainable future where its partnerships with government bodies, private sector entities, and community organizations will continue to address a broader spectrum of societal needs and challenges, combining diverse perspectives and expertise to create more effective and sustainable outcomes.