stc Group, a digital enabler, offering advanced solutions and driving a role in the digitalization process, today (February 26) delivered solid results for FY 2024 with a 85% jump in its net profit which soared to hit SAR24.7 billion ($6.6 billion) and a revenue of SAR75.8 billion ($20 billion) for the 12-month period.

 

Announcing its annual consolidated financial results for the year ending December 31, 2024, stc said these results reflect its robust growth across key financial metrics. Its gross profit for FY 2024 reached SAR37.3 billion, up 7.4% over the year before.

 

The operating profit for the year 2024 hit SAR14.4 billion, thus posting an increase of 9.6% when compared to 2023, while the ebitda soared to SAR24 billion with a 6.6% growth when compared to 2023.

 

Impressed with the results, stc has announced that its board of directors has decided to recommend additional cash dividends for FY 2024 amounting to SAR2 per share, equivalent to SAR10 billion. 

 

This is in addition to the Approved distribution under the company's policy, which was activated from the fourth quarter of FY 2024. Thus, the total cash distributions for 2024 amount to SAR 3.75 per share. This policy reflects the Group’s ongoing commitment to maximizing and enhancing investor returns, it stated.

 

On the solid performance, Group CEO Eng. Olayan Alwetaid said: "The Group’s outstanding performance and financial results during the year, reflected the performance of its subsidiaries, which achieved 16% growth, as well as the implementation of a cost efficiency program that played a pivotal role in enhancing financial performance, with the Group planning to continue adopting it as part of its culture."

 

The Group CEO further emphasizes that these results reflect the successful execution of the Group’s strategy and the achievement of its financial and operational plans. 

 

Additionally, stc’s focus on fostering innovation and enhancing customer experience played a key role in driving sustainable growth, contributing to the outstanding performance during 2024, stated Alwetaid. 

 

The Group achieved revenue growth of 5.7%, an increase in operating profit of 9.6%, and a bottom line that registered an increase of 85.7%. Notably, when excluding one-off items, the Group achieved net profit growth of 13%, he added.

 

The Group CEO said stc had successfully undertaken several strategic initiatives. The Group signed a contract, the largest of its kind, valued at SAR32.64 billion, to build, operate, and provide telecommunications infrastructure services for a government entity. 

 

Additionally, stc launched its digital bank after obtaining approval from the Saudi Central Bank, marking a significant step in offering innovative financial solutions to support individuals and businesses while advancing the digitization of the financial sector. 

 

The stc also successfully completed all procedures for selling 51% of its stake in Tawal to the Public Investment Fund (PIF) after obtaining all necessary approvals. 

 

This move aligns with the efforts of the Group and the PIF to establish a leading company in building and operating telecommunications and IT infrastructure worldwide by merging Tawal with the PIF's subsidiary, Golden Lattice Investment. 

 

On the international front, stc received approval from the Spanish Council of Ministers to increase its voting rights in Telefónica from 4.97% to 9.97%, along with the right to appoint a member to the company's Board of Directors. 

 

This investment is part of the Group’s strategy for growth and expansion, focusing on strategic investments that deliver added value, he added.