Stc reports KD 76.8m revenues, KD 7.7m net profit for Q1 2022
EBITDA increased by 7.4% to reach KD 20.3 million
KUWAIT: 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 the three months period ended 31 March 2022, highlighting the most significant achievements, financial and operational performance in addition to the social initiatives made by the company during the first quarter of 2022.
Commenting on the announcements of these results, Dr Mahmoud Ahmed Abdulrahman, stc’s Chairman, stated: “stc achieved a number of operational achievements during the first quarter of 2022 which was reflected in the company’s financial performance. The company was able to achieve these results in the view of the competitive telecommunications and ICT industries in Kuwait, especially with the increased demand for the digital communications and information technology services. Since the onset of 2022, stc was keen to provide its individual and enterprise customers with the latest integrated technical solutions to meet their needs and exceed their expectations”.
He pointed out: “stc sees a promising future in the individual and enterprise sectors, whereby the latter is based on the digital services and the developed integrated technologies in the ICT field. Thus, stc ensured developing its corporate strategy focused on expanding the company’s operations in line with the latest regional trends in order to meet customer needs and add value to our shareholders”.
With regards to stc’s CSR framework, Dr Abdulrahman commented: “Q1 2022 witnessed several community targeted and interactive initiatives following the return to full capacity across all sectors and activities. In line with the Company’s integrated CSR program, stc launched a series of campaigns and initiatives in collaboration with various charitable organizations, as well as institutions in the government and private sectors respectively. The objective of these various initiatives was to make effective and positive contributions in the society that spread awareness on important causes that impact the community.
stc’s CSR program focused on supporting and driving the Kuwaiti society, empowering the Kuwaiti youth, and contributing towards overcoming the challenges triggered by the COVID-19 pandemic. This has provided the Company with an opportunity to enhance its outreach to the local community with a primary focus on health, the environment, entrepreneurship, sports, and education.
Additionally, stc has been keen to deliver on its commitment to maintain its pioneering position as part of the social fabric in Kuwait. This approach follows the Company’s corporate values by contributing to various community-driven initiatives, which fall in line with the Company’s extensive CSR program.
Commenting on stc’s financial position as of March 31, 2022, Dr Abdulrahman said: “stc’s total assets reached KD 423.9 million by the end of March 2022, while total shareholders’ equity increased by 7 percent reaching KD 214.9 million. Whereby, stc has a strong solvency position among its peers in the Middle East. Commenting on stc’s major milestones during the first quarter of 2022, Eng Maziad Bin Nasser Al-Harbi, stc’s CEO stated: “In the first quarter of 2022, stc was able to enhance its financial and operational performance, as well as improve its customer service with the dedication and commitment of its employees to implement the Company’s digital transformation strategy with the highest quality. In this regard, stc was also capable to provide the most efficient service delivery within the telecommunications and information technology sector.
Driven by its refreshed strategy, promising outlook for the enterprise segment in Kuwait and in line with the latest rapid global developments in the ICT field, stc was eager to improve its efficiency and internal capabilities in this sector. Accordingly, stc has expanded its presence in the ICT sector through a number of transactions represented by its acquisition of Qualitynet (solutions by stc) in May 2019 and its latest acquisition of e-portal Holding Company in April 2022. Thus, stc is keen to capture the investment opportunities in this field and leverage the expertise of its subsidiaries to provide its customers with the latest and most advanced services in the field of telecommunications, information technology, and digital services”.
Commenting on the announcement of company’s financial results for the three months period ended March 31, 2022, Eng. Maziad bin Nasser Al-Harbi said: “stc managed to generate good financial results that meet shareholders’ expectations in light of the increasing demand for the most advanced global technologies as well as the regional competition in general and in Kuwait specifically, Whereby, stc’s total revenue reached KD 76.8 million in the first three months of 2022 with growth rate of 10 percent compared to KD 69.8 million in the previous year. This increase is attributed to stc’s services and smart packages designed to cater the demands of most segments of our individual customers. Not to mention stc’s emphasis on the providing digital services to the enterprise segment and delivering integrated technical solutions to the private companies and the government sector in addition to driving its operations into new areas of sustainable growth through a series of innovative initiatives aimed at improving its operational efficiency, delivering the best services and products that meet its customer’s needs, as well as supporting the company’s advanced infrastructure with the best and widest 5G coverage”.
Al-Harbi added: “These outcomes resulted in a growth of EBITDA by 7.4 percent to reach KD 20.3 million in the first quarter of 2022 compared to KD 18.9 million in the same period of 2021. Whereby, EBITDA margin reached 26 percent during the three months ended in 2022 compared to 27 percent in the same period of the previous year. As a result, the company’s net profit during the three months period ended 31 March 2022reached KD 7.7 million (earnings per share 8fils). stc’s customer base reached approx. 2.1 million customers at the end of March 2022”.
Al-Harbi noted: “at stc, we strive to adhere to effective operational and financial plans, as well as a balanced financial policy, with the goal of reaching optimal and more cost-efficient levels to achieve the required financial and operational results. By restructuring its capital expenditure in the latest periods of the COVID-19 economic crisis, stc managed to maintain the liquidity of its cash flow”.