Kuwait Telecommunications Company records over $500 million in first-half revenue

KUWAIT CITY – Kuwait Telecommunications Company (stc), a world-class digital leader providing innovative services and platforms to customers and enabling digital transformation in Kuwait, announced its financial results for the six-month period ended June 30, 2022, highlighting the most significant achievements, financial and operational performance as well as social initiatives taken by the company during the first half of 2022.

Commenting on the announcement of these results, Dr. Mahmoud Ahmed Abdulrahman, President of stc, said: “stc’s prospects for increased demand for integrated technologies and digital ICT solutions are considered to be one of the key factors executing the company’s corporate expansion strategy. its services in the B2B sector. Accordingly, stc has completed its acquisition of the entire share capital of E-portal and its subsidiaries in the second quarter of 2022. This acquisition demonstrates stc’s commitment to developing its position in the field of ICT by providing the best solutions integrated techniques to its individual and business customers. By placing greater emphasis on ICT services, stc has been able to capture new revenue streams driven by the latest significant demand for digital communication and information technology services”. He underlined: “stc is currently developing its operational strategy aimed at adding value by using the capabilities of its specialized subsidiaries in providing solutions suitable for the corporate sector in Kuwait. cst is; therefore keen to maintain its position as a pioneer in ICT services and business solutions”.

Dr. Abdulrahman noted that during the second quarter, stc managed to strengthen its extensive corporate social responsibility (CSR) program by launching and contributing to various initiatives aimed at empowering the community. The Company has collaborated with different government entities, as well as private sector companies, in line with its CSR program which aims to create a greater impact within the community. As such, stc launched a series of campaigns and initiatives that actively engaged members within the community while raising awareness for various causes. Throughout these campaigns, stc has primarily focused on addressing key issues in the areas of health, entrepreneurship, the environment, as well as sport and education. As a pioneer in the telecommunications sector and digital solutions in Kuwait, stc will continue to contribute through its rich, diverse and widespread program with the sole objective of creating a positive and lasting impact in the local community. This approach aligns with stc’s vision to nurture and support the community by implementing initiatives and events that align with its strong social responsibility framework.

Commenting on the financial situation of stc as of June 30, 2022, Dr. Abdulrahman said, “Total assets of stc reached KD 424.1 million at the end of June 2022, while total equity increased by 7% to reach 222.3 million KD. In addition, stc has a strong credit position among its peers in the Middle East”.

Commenting on stc’s achievements in the first half of 2022, Eng. Maziad Bin Nasser Al Harbi, CEO of stc, said: “In the first half of 2022, stc was able to improve its financial and operational performance, as well as its customer service thanks to the dedication and commitment of its employees to implement the business digital transformation. highest quality strategy. In this regard, stc was also able to provide the most efficient service delivery in the telecommunications and information technology sector. Driven by its updated strategy, its promising prospects for the business segment in Kuwait and in line with the latest rapid global developments in the ICT field, stc was keen to improve its efficiency and internal capabilities in this sector. As a result, 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 seize investment opportunities in this area 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 company’s financial results announcement for the six-month period ended June 30, 2022, Eng. Maziad bin Nasser Al Harbi said, “stc has generated good financial results thanks to increased demand for integrated business solutions and continued demand for traditional telecommunications services in the Kuwaiti market. The total revenue of stc reached KD 153.8 million in the first half of 2022. with a growth rate of 10.3% against KD 139.4 million in the previous year. stc succeeded in achieving this growth in its turnover with the strong support of the increase in its customer base which reached 2.2 million customers at the end of June 2022, an increase of 13.6% compared to that of June 2021”. Al Harbi noted, “As a result, stc’s EBITDA grew by 4.5% to reach KD 40.2 million in the first half of 2022 from KD 38.5 million in the same period of 2021. Thus, the EBITDA margin reached 26.2% during the six months ended 2022. As a result, the Company’s net profit during the six-month period ended June 30, 2022 reached 15.0 million KD (earnings per share 15fils)”.

Al-Harbi added, “In the first half of 2022, stc successfully increased its share capital to KD 99.9 million by distributing 100% free shares to its shareholders. This decision stems from stc’s positive vision of creating added value for its shareholders and placing their interest at the heart of its priorities. In this regard, the management of stc is careful to develop a long-term financial policy to balance its operational and financial performance, which would positively reflect its solvency and strengthen its market position as a leader in the telecommunications industry and a pioneer. of digital transformation.

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Sean B. Jackson