– Mazyad Al-Harbi: Seizing emerging opportunities, implementing digital transformation, and providing integrated technical solutions
The growing demand for fixed and mobile broadband services has boosted the company’s profitability
Mahmoud Abdel Rahman: We have spared no effort to update our strategy in line with the current situation
Enhancing the customer experience by providing a package of digital services and products for individuals and business sectors
Kuwait Telecom Company (stc) announced its financial results for the first half of this year, noting that it achieved revenues of 139.4 million dinars, profits before interest, taxes, depreciation and amortization of 38.5 million dinars, and net profits of 16.5 million dinars, with a profit of 33 fils per share, a growth of 3.8 percent over the same period in 2020.
The company explained in a statement that the assets amounted to 372.7 million dinars, and shareholders’ equity amounted to 208.7 million dinars, indicating that the book value of the share amounted to 418 fils, while the customer base reached 1.9 million customers.
Mahmoud Abdel Rahman, the company’s Chairman of the Board of Directors, said that with the continuation of the negative repercussions left by the “Covid-19” pandemic, since the first quarter of 2020, whose results still significantly affect most vital sectors in general, “stc” has spared no effort to update Its strategy is in line with the current situation, which has contributed to enhancing the experience of its customers, by continuing to provide a diverse package of the finest and latest comprehensive digital services and products for the individual and business sectors, in an initiative to move to the next stage of implementing the digital transformation strategy that it has adopted since 2019.
He added that in light of the ongoing challenges and risks faced by various sectors as a result of the current crisis, in addition to government efforts aimed at gradually lifting restrictions imposed on government and private sectors, stc is keen to provide services that will facilitate the process of business recovery and the daily activities of individuals. companies on a large scale.
Abdul Rahman stated that based on the rapid digital transformation that has become an absolute necessity for the continuation of all daily business and activities, stc periodically works on developing precautionary plans that would enable it to carry out its operational work continuously during the various ban periods, to ensure the provision of services and achieve customer satisfaction.
He pointed out that despite the continuation of the repercussions of the current crisis, stc was able, thanks to its wise operational plans and the implementation of its flexible strategy, to record an increase in revenues by 2.2 percent to 139.4 million dinars during the first half of 2021, compared to 136.4 million dinars for the same period of the previous year. . He noted that stc was able to achieve a growth in income before interest, taxes, depreciation and amortization by 7.3 percent, and net profit by 3.8 percent during the first six months of this year.
increasing of demands
For his part, the CEO of the company, Engineer Mazyad bin Nasser Al-Harbi, said that in light of the fundamental changes imposed by “Covid-19” on the whole world, which is the increase in demand for traditional and digital communication services, “stc” was able to achieve these results by adopting it. On the capabilities and efficiency of the fifth generation network, seizing emerging opportunities through the dedication of its employees and their eagerness to update and implement the digital transformation strategy, and providing integrated technical solutions to serve the directions of the Government of Kuwait with regard to social distancing for individuals and companies, and implementing plans for the gradual return to working life and daily activities in the country.
He added that the increasing demand for broadband services for fixed and mobile services has led to enhancing the company’s profitability, by providing the finest products, services and offers with the aim of helping companies and institutions to enable institutional and educational interaction via the Internet with the highest possible quality and efficiency, while the growing demand for services supports stc’s ambition. » to increase its revenues and cash flows in the near term.
Al-Harbi continued, “Income before interest, taxes, depreciation and amortization amounted to 38.5 million dinars during the first six months of 2021, compared to 35.9 million dinars during the same period in 2020, and the EBITDA margin reached 27.6% compared to with 26.3 percent for the previous year.
Al-Harbi stated that these results resulted in an increase in net profit by 3.8 percent to 16.5 million dinars, with a profitability of 33 fils per share, and a profit margin of 11.8%, compared to 15.9 million Kuwaiti dinars with a profit of 32 fils per share, and a profit margin of 11.7% for the same period in 2020.
The strength of the financial position
The company’s total assets amounted to 372.7 million dinars on June 30, 2021, and the total shareholders’ equity amounted to 208.7 million dinars, bringing the book value of the share to 418 fils.
The company has a strong financial solvency at the level of telecom companies in the Middle East, while the customer base reached 1.9 million customers at the end of last June.
Al-Harbi indicated that the company’s financial results during the first half of 2021 reflected its ability to compete and strengthen its position as the second largest telecom company in terms of its market share of revenues in the Kuwaiti telecom sector, which amounted to about 35 percent.
He revealed that with the continuation of the repercussions and challenges due to the Corona virus crisis, this rise in financial results is due to the continuation of “stc” to reduce costs, to reach the best results and enhance profitability, thanks to its adoption of a balanced and effective financial policy in terms of operating and capital expenditures.
The first half of 2021 witnessed a number of operational achievements, as the company celebrated the successful commercial launch of the integrated fifth generation network with Stand “Alone 5G SA 5G” technology, as this achievement is the latest, most advanced and integrated comprehensive network compatible with the standards of the integrated fifth generation (3GPP). .
In addition to the significant growth that it achieved in its financial and operational performance during the first half of 2021, the company proved its ability to overcome potential challenges and risks with its ability to keep pace with operational work, and its keenness to open its doors in order to serve our valued customers in these circumstances, as an expression of its gratitude to them and their loyalty. And their belief in its capabilities and their demand for the latest services and products it offers, through various points of sale and electronic platforms.
To maintain uninterrupted operations, stc continued to provide sustainable operating plans, and was able to achieve leadership in this sector, as it obtained the “ISO” certificate in business continuity (ISO 22301: 2019) with its new version after a comprehensive and extensive audit conducted by “Top Certifier.
The certificate comes as a testament to stc’s diligent approach to implementing the protocols and principles that contributed to maintaining the conduct of all its operations during the outbreak of the epidemic.
This year, stc and Virgin Mobile Middle East and Africa (VMMEA) won the local license to operate the Virtual Mobile Communication Network (MVNO), the first of its kind in Kuwait, after obtaining the approval of the Communications and Information Technology Commission to launch Virgin Mobile Kuwait.
Through its partnership with Virgin VMMEA, the first MVNO was launched in Kuwait, taking advantage of the stc network.
Solutions by stc, the stc arm for corporate services, contributed to providing a wide range of modern solutions and services to provide an integrated digital infrastructure for communications and networks in the Jaber Bridge project for vehicle vaccination in the south island of Jaber Bridge, according to the highest international standards.
And announced the addition of “Google” products to the current set of offers, to help B2B corporate customers move to the world of digital solutions, in partnership with “iSolutions”.
And the latest services of the company “Shield” specialized in providing cyber protection and security systems to its customers in the corporate sector were launched. The pioneering service, which was revealed by the Security Operations Center (SOC) of “solutions by stc”, aims to ensure business safety through Identify potential risks related to data breaches, provide comprehensive 360-degree protection, and assess critical assets, to enable a worry-free environment for businesses wanting to thrive in the digital world.
Abdul Rahman indicated that the last period of the year witnessed a number of community activities that included honoring the members of the volunteering team, in appreciation of the vital role and continuous cooperation played by the team through the initiatives that brought together the two institutions on various occasions during the past years.
He pointed out that stc renewed its invitation to distinguished Kuwaiti cadres to join its experienced team in the world of integrated communications, in order to employ Kuwaiti competencies from various scientific backgrounds and experiences.
And in the sports field, stc, the official sponsor of the Premier League and all the activities of the Kuwait Football Association, celebrated the conclusion of the activities of the Premier League through an honoring ceremony that witnessed the crowning of the Kuwaiti Premier League champion.