Stc’s profits rise 22.6 percent to 8 million dinars


– Mahmoud Abdel-Rahman: We have proven our ability to withstand and continuity by providing the best services and products during “Corona”

– The results reflect our continuing cost reduction through a balanced and effective fiscal policy in terms of operational and capital expenditures

– Mazyed Al-Harbi: The company has demonstrated its ability to overcome potential challenges and risks and its ability to keep pace with the operational business

Kuwait Telecom Company (stc) announced that it has achieved net profits of 8 million dinars, with a profit of 16 fils per share, during the first quarter of this year, with a growth of 22.6 percent compared to the first quarter of 2020, and a profit before interest, taxes, depreciation and amortization of 18.9 million dinars.

In a statement, the company indicated that it achieved revenues of 69.8 million dinars, while assets amounted to 383 million dinars, and shareholders’ equity at 200.2 million dinars, indicating that the book value of the share amounted to 401 fils, while the customer base reached 1.8 million customers.

Mjbel Al-Ayoub in discussion with members of the Interior Ministry

The Chairman of the Board of Directors of the company, Dr. Mahmoud Ahmed Abdul Rahman, said that “stc” has demonstrated its ability to withstand and continue to provide the best services and products to the individual and business sectors within the potential risks and critical economic conditions resulting from the continuing outbreak of the new Corona virus worldwide, whose effects and repercussions still remain. Negativity affects most of the vital sectors.

He stressed the keenness of «stc» constantly to develop precautionary plans that would enable it to carry out its operational activities continuously during the various quarantine periods to ensure the provision of services and achieve customer satisfaction.

He added that, in line with global trends in the field of telecommunications, and based on the changes occurring in the market and corporate strategy, stc was keen to update the strategic framework, to consolidate its position as a pioneer in the field of digital technology, which has contributed over the past two years to improving the level of its operations and investing in Developing the largest “5G” network in Kuwait, and enhancing its digital channels to provide its customers with an unparalleled experience.

Abdul Rahman stated that the first quarter revenues amounted to 69.8 million dinars, compared to 72.2 million dinars for the same period of the previous year, referring to the continuing repercussions of the current crisis, which continues to put pressure on the operational and financial results of the telecommunications sector, especially the individual sales sector as a result of the continuation of partial ban measures. In Kuwait due to the Corona virus.

And he indicated that this comes in addition to the ongoing restrictions on airport movement and the suspension of travel flights, which resulted in a decline in the number of residents in the State of Kuwait during the past year, which contributed to the decline in demand for the individual sales sector.

He noted the significant and almost total decline in roaming revenues, and that despite the decline in revenues, stc was able to achieve a growth in both income before interest, taxes, depreciation and amortization by 10.9%, and net profit by 22.6%.

Financial Center

Abdul Rahman stated that the company’s total assets amounted to 383 million dinars on March 31, while the total equity of its shareholders amounted to 200.2 million dinars, bringing the book value of the share to 401 fils.

He stressed that the company has strong financial solvency at the level of telecommunications companies in the Middle East, while its customer base reached 1.8 million customers at the end of last March.

Abdul Rahman pointed out that the financial results during the first quarter reflected the company’s ability to compete and strengthen its position as the second largest telecom company in terms of its market share from the volume of revenues in the Kuwaiti telecom sector, with a market share of 35 percent.

He added that with the continuing repercussions and challenges that we face as a result of the Corona crisis, he attributes this tangible increase in financial results to the decrease in bad debts, and 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 operational and capital expenditures.

Professional and flexible

For his part, the CEO of the company, Engineer Mazyad bin Nasser Al-Harbi, said that “stc” was able to achieve these results thanks to the efforts and professionalism of the work team, and its flexibility in implementing its strategy for digital transformation and providing integrated technical solutions, in a way that serves the directions of the Kuwaiti government regarding social distancing. For individuals and companies.

He pointed out that “stc” has focused its efforts on relying on the fifth generation network to provide a range of services, which include entertainment and digital services, and to meet the increasing demand for broadband services for fixed and mobile services with high speeds and superior response capacity, and the requirements of the corporate and institutions sector related to institutional and educational interaction via the Internet at the highest Possible quality and efficiency.

He believed that the company has demonstrated its ability to face various unprecedented challenges, thanks to the great efforts and dedication of its employees and their insistence on providing services and products to customers, with the same quality standards through the available digital platforms.

Al-Harbi pointed out that income before interest, taxes, depreciation and amortization increased by 10.9 percent to 18.9 million dinars during the first three months of 2021, compared to 17 million dinars during the same period in 2020.

He revealed that the EBITDA margin reached 27 percent during the first quarter of 2021, compared to 24 percent for the same period of the previous year.

“These results resulted in an increase in net profit of 22.6 percent to 8 million dinars, with a profit of 16 fils per share and a profit margin of 11 percent, compared to 6.5 million dinars with a profit of 13 fils and a profit margin of 9 percent for the same period of 2020.”

Skip the stakes

Al-Harbi explained that the company has demonstrated its ability to overcome potential challenges and risks while being able to keep pace with the operational business and open its doors in order to serve customers in these circumstances.

He mentioned that to maintain operations without interruption, “stc” continued to provide sustainable operating plans, and was able to achieve leadership in this sector, by obtaining an “ISO” certificate in business continuity (ISO 22301: 2019), in its new version, after an audit. Comprehensive and extensive conducted by the «TopCertifier».

He added that this testimony is a testament to the tireless approach taken by “stc”, to implement the protocols and principles that have contributed to maintaining the functioning of all its operations during the period of the outbreak of the epidemic.

Al-Harbi revealed that the first quarter of 2021 witnessed the announcement of stc and Virgin Mobile Middle East and Africa (VMMEA) winning the local license to operate the MVNO, the first of its kind in Kuwait, after they obtained the approval of the General Authority. For Communications and Information Technology, to launch “Virgin Mobile Kuwait”

He added that through its partnership with “Virgin VMMEA”, the first mobile virtual communication network operator “MVNO” was launched in Kuwait, taking advantage of the “stc” network of the fifth generation.

Cybersecurity

“Solutions by stc” launched its latest service, “Dera”, which is specialized in providing protection and cyber security systems to its customers in the corporate sector.

The pioneering service, which was revealed by the Security Operations Center (SOC) of “solutions by stc”, the arm of the company specialized in providing integrated business sector solutions, aims to ensure business safety by identifying potential risks related to data breaches, and providing comprehensive protection 360 Degree, and valuation of critical assets to enable a worry-free environment for companies wishing to thrive in the digital world.

About the author

Leave a Reply

Your email address will not be published. Required fields are marked *