stc H1 2024 profits up 8% to SAR 6.59B; Q2 at SAR 3.3B

stc H1 2024 profits up 8% to SAR 6.59B; Q2 at SAR 3.3B

23/07/2024 Argaam Exclusive

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Telecom giant stc posted SAR 6.59 billion in net profit for the first half of 2024, an increase of 8% year-on-year (YoY) from SAR 6.11 billion.



Financials (M)

Item 6m 2023 6m 2024 Change‬
Revenues 36,506.30 38,254.94 4.8 %
Gross Income 18,249.26 18,957.46 3.9 %
Operating Income 7,011.49 7,762.27 10.7 %
Net Income 6,117.12 6,590.28 7.7 %
Average Shares 5,000.00 5,000.00 -
EPS (Riyals) 1.22 1.32 7.7 %

Revenues grew by SAR 1.74 billion in H1 2024, offset by higher cost of revenue by SAR 1.04 billion, leading to an increase in gross profit by SAR 708 million.

 

The telco also posted a decrease in operating expenses by SAR 21 million, as well as a fall in Zakat and income tax expense by SAR 154 million.

 

Meanwhile, total other expenses rose by SAR 348 million, mainly due to higher finance cost, cost of early retirement program, and net other expenses, as well as a decline in net share in results of investments in associates and joint ventures.

 

However, finance income grew by SAR 136 million and the booking of net other gains at SAR 60 million compared to net other losses of SAR 30 million a year earlier.

 

The second-quarter net profit grew 10% to SAR 3.3 billion, from SAR 3 billion in Q2 2023, spurred by higher revenues along with lower operating expenses as well as tax and Zakat charges.

 

Sequentially, stc reported 0.6% profit growth from SAR 3.28 billion in Q1 2024.



Current Quarter Comparison (M)

Compared With The
Item Q2 2023 Q2 2024 Change‬
Revenues 18,326.98 19,021.00 3.8 %
Gross Income 9,015.43 8,825.00 (2.1 %)
Operating Income 3,280.50 3,533.00 7.7 %
Net Income 3,008.45 3,304.39 9.8 %
Average Shares 5,000.00 5,000.00 -
EPS (Riyals) 0.60 0.66 9.8 %

Total shareholders’ equity, after minority interest, reached SAR 76.40 billion as of June 30, 2024, up from SAR 75.49 billion a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2015 12,473.48 15.7 % 7,543.92 21.5 % 3,379.74 26.8 %
Q2 2015 12,222.15 4.3 % 7,164.16 2.0 % 2,963.44 0.1 %
Q3 2015 12,894.71 9.7 % 7,624.10 0.0 % 3,038.06 (14.2 %)
Q4 2015 13,246.19 11.8 % 8,010.86 9.7 % 2,554.39 (8.2 %)
Q1 2016 13,228.62 6.1 % 7,076.10 (6.2 %) 2,856.43 (15.5 %)
Q2 2016 13,412.97 9.7 % 7,470.82 4.3 % 2,863.30 (3.4 %)
Q3 2016 14,025.79 8.8 % 7,117.39 (6.6 %) 2,402.82 (20.9 %)
Q4 2016 13,010.95 (1.8 %) 7,023.48 (12.3 %) 1,828.54 (28.4 %)
Q1 2017 12,524.11 (5.3 %) 6,923.88 (2.2 %) 2,615.07 (8.4 %)
Q2 2017 13,041.18 (2.8 %) 6,911.04 (7.5 %) 2,583.68 (9.8 %)
Q3 2017 12,621.35 (10.0 %) 7,400.59 4.0 % 2,906.90 21.0 %
Q4 2017 12,502.72 (3.9 %) 7,347.91 4.6 % 2,880.37 57.5 %
Q1 2018 12,349.08 (1.4 %) 6,934.85 0.2 % 2,632.35 0.7 %
Q2 2018 13,079.39 0.3 % 7,167.18 3.7 % 2,900.92 12.3 %
Q3 2018 13,319.89 5.5 % 7,850.74 6.1 % 3,235.52 11.3 %
Q4 2018 13,214.89 5.7 % 8,520.31 16.0 % 3,476.44 20.7 %
Q1 2019 13,385.75 8.4 % 7,903.48 14.0 % 3,275.20 24.4 %
Q2 2019 13,603.56 4.0 % 8,207.29 14.5 % 3,477.32 19.9 %
Q3 2019 14,113.63 6.0 % 7,920.82 0.9 % 3,328.05 2.9 %
Q4 2019 13,264.59 0.4 % 8,359.64 (1.9 %) 2,399.82 (31.0 %)
Q1 2020 13,934.85 4.1 % 8,195.88 3.7 % 3,004.03 (8.3 %)
Q2 2020 14,920.23 9.7 % 8,340.99 1.6 % 3,062.17 (11.9 %)
Q3 2020 14,881.43 5.4 % 8,970.96 13.3 % 3,459.60 4.0 %
Q4 2020 15,216.80 14.7 % 8,446.57 1.0 % 3,205.33 33.6 %
Q1 2021 15,695.50 12.6 % 8,557.10 4.4 % 3,481.61 15.9 %
Q2 2021 15,898.77 6.6 % 8,352.20 0.1 % 3,250.29 6.1 %
Q3 2021 15,735.35 5.7 % 8,368.88 (6.7 %) 3,191.71 (7.7 %)
Q4 2021 15,678.37 3.0 % 8,515.85 0.8 % 3,204.15 0.0 %
Q1 2022 16,919.37 7.8 % 9,150.40 6.9 % 3,823.77 9.8 %
Q2 2022 16,829.96 5.9 % 9,174.08 9.8 % 3,719.65 14.4 %
Q3 2022 16,307.74 3.6 % 8,961.11 7.1 % 3,497.49 9.6 %
Q4 2022 17,374.48 10.8 % 9,028.66 6.0 % 2,968.52 (7.4 %)
Q1 2023 18,179.32 7.4 % 9,233.82 0.9 % 3,730.98 (2.4 %)
Q2 2023 18,326.98 8.9 % 9,015.43 (1.7 %) 3,280.50 (11.8 %)
Q3 2023 18,034.39 10.6 % 8,978.58 0.2 % 3,432.62 (1.9 %)
Q4 2023 17,724.31 2.0 % 8,845.26 (2.0 %) 2,768.24 (6.7 %)
Q1 2024 19,100.02 5.1 % 9,386.18 1.6 % 3,856.21 3.4 %
Q2 2024 19,021.00 3.8 % 8,825.00 (2.1 %) 3,533.00 7.7 %


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2015 2,503.58 4.7 % 0.50 (45.68) 2,549.25 0.51
Q2 2015 2,558.33 (8.7 %) 0.51 (55.28) 2,613.61 0.52
Q3 2015 2,322.15 (31.1 %) 0.46 (88.53) 2,410.68 0.48
Q4 2015 1,950.49 (20.1 %) 0.39 98.04 1,852.45 0.37
Q1 2016 2,396.58 (4.3 %) 0.48 (79.24) 2,475.82 0.50
Q2 2016 2,202.19 (13.9 %) 0.44 6.48 2,195.70 0.44
Q3 2016 2,216.94 (4.5 %) 0.44 (40.79) 2,257.72 0.45
Q4 2016 2,083.16 6.8 % 0.42 103.34 1,979.82 0.40
Q1 2017 2,534.75 5.8 % 0.51 - 2,534.75 0.51
Q2 2017 2,356.48 7.0 % 0.47 - 2,356.48 0.47
Q3 2017 2,569.37 15.9 % 0.51 - 2,569.37 0.51
Q4 2017 2,554.98 22.6 % 0.51 - 2,554.98 0.51
Q1 2018 2,587.53 2.1 % 0.52 - 2,587.53 0.52
Q2 2018 2,444.05 3.7 % 0.49 - 2,444.05 0.49
Q3 2018 2,642.62 2.9 % 0.53 - 2,642.62 0.53
Q4 2018 3,105.58 21.5 % 0.62 411.00 2,694.58 0.54
Q1 2019 2,749.74 6.3 % 0.55 - 2,749.74 0.55
Q2 2019 2,848.02 16.5 % 0.57 - 2,848.02 0.57
Q3 2019 2,746.20 3.9 % 0.55 - 2,746.20 0.55
Q4 2019 2,320.71 (25.3 %) 0.46 287.48 2,033.23 0.41
Q1 2020 2,912.75 5.9 % 0.58 496.00 2,416.75 0.48
Q2 2020 2,724.22 (4.3 %) 0.54 152.00 2,572.22 0.51
Q3 2020 2,765.54 0.7 % 0.55 - 2,765.54 0.55
Q4 2020 2,592.38 11.7 % 0.52 - 2,592.38 0.52
Q1 2021 2,952.09 1.4 % 0.59 - 2,952.09 0.59
Q2 2021 2,821.21 3.6 % 0.56 - 2,821.21 0.56
Q3 2021 2,924.39 5.7 % 0.58 180.00 2,744.39 0.55
Q4 2021 2,613.65 0.8 % 0.52 83.21 2,530.44 0.51
Q1 2022 3,035.10 2.8 % 0.61 (239.00) 3,274.10 0.65
Q2 2022 2,837.35 0.6 % 0.57 (298.00) 3,135.35 0.63
Q3 2022 3,541.00 21.1 % 0.71 357.00 3,184.00 0.64
Q4 2022 2,757.09 5.5 % 0.55 318.96 2,438.14 0.49
Q1 2023 3,108.67 2.4 % 0.62 - 3,108.67 0.62
Q2 2023 3,008.45 6.0 % 0.60 130.00 2,878.45 0.58
Q3 2023 4,904.02 38.5 % 0.98 1,940.00 2,964.02 0.59
Q4 2023 2,274.24 (17.5 %) 0.45 83.00 2,191.24 0.44
Q1 2024 3,285.89 5.7 % 0.66 - 3,285.89 0.66
Q2 2024 3,304.39 9.8 % 0.66 (21.30) 3,325.69 0.67

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2015 61.69 % 41.53 % 23.13 %
Q2 2015 61.35 % 41.33 % 22.39 %
Q3 2015 59.94 % 39.46 % 19.94 %
Q4 2015 59.69 % 38.10 % 18.54 %
Q1 2016 57.91 % 36.88 % 18.13 %
Q2 2016 57.18 % 36.19 % 16.93 %
Q3 2016 55.04 % 34.38 % 16.29 %
Q4 2016 53.44 % 33.59 % 16.60 %
Q1 2017 53.87 % 33.53 % 16.93 %
Q2 2017 53.18 % 32.69 % 17.35 %
Q3 2017 55.20 % 34.28 % 18.44 %
Q4 2017 56.39 % 37.24 % 19.76 %
Q1 2018 56.61 % 37.32 % 19.93 %
Q2 2018 57.07 % 38.25 % 20.09 %
Q3 2018 57.17 % 38.48 % 19.96 %
Q4 2018 58.64 % 38.17 % 19.95 %
Q1 2019 59.32 % 39.05 % 19.87 %
Q2 2019 60.69 % 40.28 % 20.43 %
Q3 2019 59.93 % 39.89 % 20.32 %
Q4 2019 59.58 % 39.11 % 19.09 %
Q1 2020 59.51 % 38.62 % 18.29 %
Q2 2020 58.36 % 37.16 % 17.37 %
Q3 2020 59.42 % 37.62 % 17.17 %
Q4 2020 57.60 % 37.47 % 17.55 %
Q1 2021 56.52 % 37.23 % 17.92 %
Q2 2021 55.64 % 37.10 % 18.04 %
Q3 2021 53.92 % 36.30 % 17.76 %
Q4 2021 53.63 % 36.25 % 17.53 %
Q1 2022 53.54 % 36.27 % 17.70 %
Q2 2022 54.03 % 36.64 % 17.93 %
Q3 2022 54.46 % 36.91 % 18.44 %
Q4 2022 53.85 % 35.59 % 17.84 %
Q1 2023 52.99 % 35.00 % 17.27 %
Q2 2023 51.63 % 33.71 % 16.54 %
Q3 2023 50.42 % 32.97 % 15.84 %
Q4 2023 49.92 % 32.79 % 15.42 %
Q1 2024 49.50 % 32.56 % 15.47 %
Q2 2024 48.78 % 32.58 % 15.93 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2015 5,000.00 2.22 2.21 12.06
Q2 2015 5,000.00 2.18 2.16 12.13
Q3 2015 5,000.00 1.97 1.97 12.07
Q4 2015 5,000.00 1.87 1.89 12.11
Q1 2016 5,000.00 1.85 1.87 11.94
Q2 2016 5,000.00 1.77 1.79 11.88
Q3 2016 5,000.00 1.75 1.76 11.90
Q4 2016 5,000.00 1.78 1.78 11.99
Q1 2017 5,000.00 1.81 1.79 12.11
Q2 2017 5,000.00 1.84 1.83 12.21
Q3 2017 5,000.00 1.91 1.89 12.33
Q4 2017 5,000.00 2.00 2.00 12.57
Q1 2018 5,000.00 2.01 2.01 12.69
Q2 2018 5,000.00 2.03 2.03 12.76
Q3 2018 5,000.00 2.05 2.05 12.87
Q4 2018 5,000.00 2.16 2.07 13.10
Q1 2019 5,000.00 2.19 2.11 13.67
Q2 2019 5,000.00 2.27 2.19 12.51
Q3 2019 5,000.00 2.29 2.21 12.24
Q4 2019 5,000.00 2.13 2.08 12.35
Q1 2020 5,000.00 2.17 2.01 12.57
Q2 2020 5,000.00 2.14 1.95 12.58
Q3 2020 5,000.00 2.14 1.96 12.73
Q4 2020 5,000.00 2.20 2.07 12.79
Q1 2021 5,000.00 2.21 2.18 13.01
Q2 2021 5,000.00 2.23 2.23 12.78
Q3 2021 5,000.00 2.26 2.22 13.70
Q4 2021 5,000.00 2.26 2.21 13.85
Q1 2022 5,000.00 2.28 2.27 14.07
Q2 2022 5,000.00 2.28 2.34 14.36
Q3 2022 5,000.00 2.41 2.42 14.67
Q4 2022 5,000.00 2.43 2.41 14.70
Q1 2023 5,000.00 2.45 2.37 14.93
Q2 2023 5,000.00 2.48 2.32 15.10
Q3 2023 5,000.00 2.76 2.28 15.77
Q4 2023 5,000.00 2.66 2.23 15.80
Q1 2024 5,000.00 2.69 2.26 16.09
Q2 2024 5,000.00 2.75 2.35 15.28

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2015 11.29 11.35 2.08
Q2 2015 12.41 12.48 2.23
Q3 2015 12.47 12.43 2.03
Q4 2015 14.66 14.52 2.26
Q1 2016 13.92 13.74 2.15
Q2 2016 14.52 14.41 2.17
Q3 2016 12.69 12.67 1.87
Q4 2016 16.31 16.29 2.42
Q1 2017 14.80 14.91 2.21
Q2 2017 16.76 16.88 2.52
Q3 2017 14.83 14.99 2.30
Q4 2017 13.70 13.70 2.18
Q1 2018 16.46 16.46 2.61
Q2 2018 17.66 17.66 2.81
Q3 2018 16.72 16.72 2.66
Q4 2018 17.03 17.71 2.80
Q1 2019 19.67 20.43 3.15
Q2 2019 18.30 18.98 3.32
Q3 2019 19.01 19.71 3.55
Q4 2019 19.09 19.62 3.30
Q1 2020 16.16 17.42 2.78
Q2 2020 18.50 20.27 3.15
Q3 2020 18.73 20.52 3.15
Q4 2020 19.28 20.49 3.32
Q1 2021 22.98 23.30 3.90
Q2 2021 23.65 23.65 4.12
Q3 2021 22.50 22.86 3.71
Q4 2021 19.87 20.35 3.25
Q1 2022 18.92 18.96 3.06
Q2 2022 17.02 16.62 2.71
Q3 2022 16.36 16.23 2.68
Q4 2022 15.04 15.21 2.49
Q1 2023 16.35 16.88 2.68
Q2 2023 17.52 18.74 2.88
Q3 2023 13.64 16.51 2.38
Q4 2023 15.19 18.13 2.56
Q1 2024 14.70 17.49 2.46
Q2 2024 13.84 16.19 2.49

Business Segments (Million)

Compared With The
Period STC (Saudi arabia) STC channels Company Solutions Kuwait Telecommunication Company "STC Kuwait" Telecommunications Towers Company ( TAWAL ) stc Bahrain BSC stc Bank Gulf Digital Media Model Company (GDMM) (Intigral) Advanced Technology and Cybersecurity Company ( sirar ) Public Telecommunications Company (Specialized) Other operating segments Consolidation adjustments & eliminations GSM Landline DATA Un-allocated
Q1 2015 - - - - - - - - - - - - 8,440.66 3,066.91 967.15 (1.23)
Q2 2015 - - - - - - - - - - - - 7,996.74 3,171.23 1,057.86 (3.68)
Q3 2015 - - - - - - - - - - - - 8,401.59 2,981.61 1,511.66 (0.15)
Q4 2015 - - - - - - - - - - - - 8,640.52 3,050.16 1,273.82 95.77
Q1 2016 11,140.70 864.25 - - - - - - - - 1,976.63 (752.96) - - - -
Q2 2016 11,759.92 814.10 - - - - - - - - 2,092.28 (1253.32) - - - -
Q3 2016 11,578.66 694.60 - - - - - - - - 2,148.24 (395.70) - - - -
Q4 2016 11,718.75 655.71 - - - - - - - - 1,988.92 (2357.10) - - - -
Q1 2017 10,797.74 666.17 - - - - - - - - 1,613.10 (552.90) - - - -
Q2 2017 11,131.56 742.11 - - - - - - - - 2,239.26 (1071.76) - - - -
Q3 2017 9,839.32 467.79 - - - - - - - - 2,071.73 242.50 - - - -
Q4 2017 9,676.60 1,179.03 - - - - - - - - 2,425.11 (806.03) - - - -
Q1 2018 9,698.95 1,252.37 - - - - - - - - 2,042.44 (644.69) - - - -
Q2 2018 9,897.49 1,647.03 - - - - - - - - 2,430.66 (895.78) - - - -
Q3 2018 10,197.06 1,110.89 - - - - - - - - 2,416.37 (404.43) - - - -
Q4 2018 9,562.79 12,872.44 - - - - - - - - 2,613.09 (11833.44) - - - -
Q1 2019 9,512.20 2,322.58 - - - - - - - - 2,531.06 (980.09) - - - -
Q2 2019 10,340.08 6,278.51 - - - - - - - - 3,051.22 (6066.25) - - - -
Q3 2019 10,294.47 4,341.27 - - - - - - - - 3,354.69 (3876.80) - - - -
Q4 2019 10,112.36 4,467.44 - - - - - - - - 3,691.23 (5006.43) - - - -
Q1 2020 10,333.04 4,295.21 - - - - - - - - 3,610.19 (4303.59) - - - -
Q2 2020 10,283.06 4,966.19 - - - - - - - - 3,779.31 (4108.33) - - - -
Q3 2020 11,041.84 3,706.50 - - - - - - - - 4,215.33 (4082.24) - - - -
Q4 2020 11,240.89 4,559.90 - - - - - - - - 4,129.05 (4713.03) - - - -
Q1 2021 11,258.37 4,929.84 1,866.79 - - - - - - - 2,254.30 (4613.80) - - - -
Q2 2021 11,223.51 5,327.80 1,937.20 - - - - - - - 2,352.57 (4942.31) - - - -
Q3 2021 11,469.19 4,745.07 1,951.46 - - - - - - - 2,473.09 (4903.46) - - - -
Q4 2021 11,494.77 5,626.77 1,452.88 - - - - - - - 2,867.06 (5763.11) - - - -
Q1 2022 12,299.31 3,078.37 2,242.90 950.30 673.83 419.14 235.36 125.23 54.81 69.58 4.78 (3234.24) - - - -
Q2 2022 12,220.50 2,770.27 2,085.15 934.00 698.86 427.20 249.65 130.68 148.33 75.09 5.23 (2915.01) - - - -
Q3 2022 12,370.96 2,596.56 2,039.16 947.92 717.35 448.35 262.45 109.97 111.80 76.24 17.97 (3390.98) - - - -
Q4 2022 11,885.63 3,006.07 2,437.88 1,281.29 778.13 495.45 293.32 172.18 115.35 140.86 33.22 (3264.91) - - - -
Q1 2023 12,188.99 3,765.58 2,676.27 1,061.01 739.29 473.42 223.64 157.41 100.68 60.22 145.26 (3412.45) - - - -
Q2 2023 12,447.95 3,769.91 2,701.29 1,069.31 797.41 477.74 244.86 130.91 148.49 79.63 228.03 (3768.54) - - - -
Q3 2023 12,384.58 3,215.50 2,794.64 1,030.42 - 481.92 299.86 176.78 170.43 90.36 443.15 (3053.26) - - - -
Q4 2023 12,196.66 3,443.22 2,868.29 1,117.54 962.53 480.20 294.64 178.21 169.01 167.29 483.99 (4637.30) - - - -
Q1 2024 12,332.52 4,151.80 2,808.65 1,065.02 931.39 491.28 300.04 176.44 120.50 73.28 510.43 (3861.31) - - - -
Q2 2024 12,461.06 3,847.29 2,771.47 1,080.29 947.31 474.51 303.67 156.37 129.43 86.64 576.86 (3679.99) - - - -

Analysts Estimates (Million)

Item Q2 2024 (e) Q2 2024 (a) Change‬
Average 3,189.05 3,304.39 3.62 %

Estimates vs Actual (Million)

Item Q2 2024 (e) Q2 2024 (a) Change
United Securities Company 3,260.00 3,304.39 1.4 %
AlJazira Capital 3,248.00 3,304.39 1.7 %
Al Rajhi Capital 3,218.00 3,304.39 2.7 %
YAQEEN 3,436.00 3,304.39 (3.8) %
Hermes 3,160.00 3,304.39 4.6 %
Riyad Capital 3,151.00 3,304.39 4.9 %
Arqaam Capital 3,140.00 3,304.39 5.2 %
U-Capital 3,499.70 3,304.39 (5.6) %
Sico 3,129.00 3,304.39 5.6 %
Value Capital 3,091.82 3,304.39 6.9 %
OSOOL AND BAKHEET 3,067.05 3,304.39 7.7 %
SNB Capital 2,868.00 3,304.39 15.2 %

Current
Market Cap (M Riyal) 204,500.00
Enterprise Value (EV) (M) 198,045.01
Shares Outstanding ((M)) 5,000.00
EPS ( Riyal) (TTM) 2.70
Book Value (BV) ( Riyal) 15.86
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 16.88
P/E (TTM) 15.14
Price/book 2.58
Return on Average Assets (%) (TTM) 8.5
Return on Average Equity (%) (TTM) 17.1

Share Price

40.90
0.50 1.24 %

Saudi Telecom Co. (STC)


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