Primed for 5G gains at one and abroad
Saudi Telecom Group’s top and bottom line numbers indicate healthy growth for the next four years, reports Gulf News. It has the highest market capitalisation in the Middle East and Africa which is not just down to the 5G growth, but with a youthful domestic market that is also set for healthy growth.
Saudi Telecom Company STC’s newly declared yearly figures show an 8.22% increase improvement on the first nine months of 2021 with a net profit of SR9.41 billion (€2.34b) after its zakat (Muslim charity) and tax obligations. In 2022 revenues climbed 6.48% year-on-year to SR50.39 billion €12.5b) from SR47.33 billion (€11.74). In 9M-2022, earnings per share were SR1.89, up from SR1.74 for the year before.
Net earnings in the third quarter of 2022 of SR3.54 billion (€880m) represents an increase of 21.10 per cent from SR2.92 billion (€550m). STC declared interim cash dividends for Q3-22 totalling SR1.99 billion, increasing it by SR0.40 per share, or 4 per cent of the nominal value of each share. This increase was due to profit growth and contributed to shareholders receiving stable returns. The Saudi Arabian telecom market was estimated to be worth $13.9 billion (€3.45 bn) in 2021 and from 2022 to 2026 it is expected to expand by 5% annually. The development of the 5G mobile network will be the driving force behind this growth.
In contrast to the global average of 53%, the Communications and Information Technology Commission (CITC) reported that 93% of the Saudi population has internet access. STC runs the most extensive mobile network in the Middle East, providing 4G broadband to around 85 % of the Saudi population and covering 99% of its populated areas. STC’s investments include 100% ownership of Viva Bahrain, 51.8% stake in Viva Kuwait and a 35% stake in Oger Telecom, which controls Turk Telecom, Avea in Turkey and and Cell-C in South Africa. It also has a 25% stake in Binariang GSM Holding in Malaysia, which owns Maxis in Malaysia.
With 69% of the population under the age of forty, the country’s demographics are likely create rising demand for STC’s services. Additionally, it is projected that 5G would create new investment opportunities. In 2021, STC was the market leader in pay-TV, fixed voice, fixed broadband and mobile. It is predicted to continue to hold the top spot thanks to its intense focus on 5G network expansion. The constant expansion of subscriptions for smartphones and multiple SIM cards will help to support the company’s further gains.
The Saudi Telecom Group has the highest market capitalisation in The Middle East and North Africa, with 100 million subscribers worldwide. It offers a 158,000 km fibre-optic network that connects Asia, the Middle East, and Europe. STC’s operations in the Middle East are supported by underlying investments in IT, content, distribution, contact centres, and commercial property.