KUWAIT: Kuwait Telecommunications Company (stc), a world-class digital leader providing innovative services and platforms to customers, enabling digital transformation in Kuwait, announced its financial results for the nine-month period ended September 30, 2021. On this occasion Dr Mahmoud Ahmad Abdulrahman, President of stc, said, “Driven by the global focus on digitization and the company’s prospects for digitization, stc’s renewed strategy has played an important role in Kuwait’s digital transformation.
Since the onset of the COVID-19 pandemic, the urgent need for a local digital society has been met by enabling businesses, educational institutions and individuals to stay connected by improving stc’s network infrastructure in addition to providing online platforms and a variety of the best and latest comprehensive digital services and products to the personal and business sectors to enhance the customer experience.
Continuing socio-economic changes and the increased demand for digital tools, products and services necessary for the continuation of day-to-day business operations have prompted stc to improve its business strategy as well as its risk management plans which aim to enable to the company to continuously exercise its operations during the various circumstances to ensure the continuity of the supply of the best quality and the satisfaction of the customer ”.
Commenting on the financial results for the nine-month period ended September 30, 2021, Dr Abdulrahman said: “Despite the slow recovery process impacted by the COVID-19 crisis, stc was able to record an increase in income of 2 , 3% during the first 9 months. of 2021 to reach 213.8 million KD against 209.0 million KD for the same period the previous year. This increase is mainly attributable to the resilient performance of the Company and the implementation of its flexible strategy.
On the other hand, the high marketing and sales costs due to strong competition in the market led to a decrease in EBITDA of 1.6% in the first nine months of 2021 compared to the same period of l ‘last year. The steep depreciation associated with investments in 5G network assets that the company has used extensively also had a significant effect, leading to a 13.4% drop in net profit in the first nine months of 2021 compared to the same period. of the previous year. “
Corporate social responsibility
Regarding the corporate social responsibility of stc, Dr Abdulrahman pointed out that the past year has been marked by a number of social activities aimed at supporting the government’s decisions to tackle the pandemic after the cabinet has eased travel restrictions, allowing non-Kuwaiti vaccinated travelers to return to the country. . As part of the company’s broad corporate social responsibility, stc has launched a series of campaigns and initiatives to help clients overcome challenges that have emerged in light of the unexpected circumstances facing the country.
Stc’s CSR program has always focused on supporting causes and initiatives that have a direct impact on the Kuwaiti community. This has enabled the Company to engage with communities at all levels of society, focusing primarily on the areas of health, environment, entrepreneurship, sport and education. Based on its key values, the Company has long been committed to consistently implementing the initiatives of its CSR program, whether through an annual program, sponsorship or motivated campaigns. a cause.
Regarding the financial results of the company, engineer Maziad Alharbi – CEO of stc, commented: “stc has been able to improve its operational performance due to the global fundamental changes imposed by the COVID-19 crisis, which has increased the demand for digital communications and services. Thus, stc was able to maintain the revenue growth achieved throughout this year by leveraging the capabilities and efficiency of the 5G network.
With the recent implementation of the Return to Normal Life process in Kuwait, the dedicated team at stc has proven their professionalism, enthusiasm and dedication to accelerating the operational performance of stc’s B2B and B2C segments. This has been represented by providing integrated technical solutions that meet the latest needs of businesses and individuals for digital tools that have become an integral part of our daily life.
On the other hand, the increased demand in the ICT sector is a result of the current global trend towards the use of IT systems and solutions, IoT, cloud computing, big data, storage as well as security services have increased competition in the telecommunications and ICT sectors. In this regard, stc is currently keen to further improve its IT infrastructure by recruiting cutting-edge expertise in the ICT sector, in addition to harnessing business, professional, service delivery and project management capabilities to develop new business models that will help the company improve, produce and deliver complete enterprise database solutions.
Thus, the updated strategy of stc has reflected the important need to provide innovative, scalable and diversified technological and IT communication solutions to support the growing demand for these services in order to improve the operational and financial performance of stc in the periods futures ”.
Alharbi added, “The EBITDA of stc reached KD 57.0 million in the first nine months of 2021, compared to KD 57.9 million in the same period of 2020. While the EBITDA margin reached 26.6% in the first nine months of 2021. As a result, stc reported net profit. of KD 23.8 million (earnings per share of 48 fils) with a profit margin of 11.1% in the first nine months of 2021.
Considering the financial condition of the Company, total assets reached KD 394.0 million as of September 30, 2021, while total equity reached KD 216.0 million, with a book value of 433 Kuwaiti fils per share. stc enjoys a strong financial solvency position, which is considered to be one of the best compared to telecommunications companies in the Middle East. In addition, stc’s customer base stood at 1.9 million customers at the end of September 2021.
Alharbi noted: “The financial results of stc for the first nine months of 2021 demonstrate the ability of the company to open up to new areas of improvement and to maintain its position as the second telecommunications operator in the telecommunications market. Kuwaiti with a revenue market share of approx. 35 percent. With the current repercussions and challenges we face as a result of the COVID-19 crisis still affecting most vital sectors around the world, the economic situation is hampering the process of resuming the operational and financial performance of companies.
While the company is primarily concerned with adding value to its customers and obtaining good returns for its shareholders by adopting a balanced and efficient financial policy with regard to operating and capital expenses, stc has chosen to capitalize on its cost optimization program to obtain better results. and improve its profitability.
The first nine months of 2021 have been marked by many operational achievements, during which stc has launched a lottery draw for clients who subscribe to new engagement plans and those who renew their current plans through the zeed offer. The year has witnessed an extraordinary event for stc, in which the company received approval from the Communication and Information Technology Regulatory Authority (CITRA) to launch the first license of mobile virtual network operator (MVNO) to launch Virgin Mobile Kuwait. in partnership with Virgin Mobile Middle East and Africa. Virgin Mobile Kuwait will operate using the stc network, stc acting as a provider of ‘FBP’ host facilities with Virgin Mobile Kuwait, offering prepaid plans to users and making it the country’s first virtual telecommunications service.
Solutions by stc also announced its partnership with Datumcon, a Gulf-based artificial intelligence (AI) and data science company, to bring the benefits of AI-based video analytics to businesses in Kuwait. In addition, solutions by stc has launched a new promotion specially designed to support small and medium-sized enterprises (SMEs) with Dedicated Data Access (DDA) and Dedicated Internet Access (DIA) at competitive prices.
Finally, it should be mentioned that over the past nine months, the Company has announced the launch of its brand new business website with a new look, as well as innovative features that complement the unique experience of B2B customers. The new website has been specially designed with the goal of providing a world-class experience for customers, while meeting their diverse business needs through improved access to a variety of solutions.