KUWAIT CITY, Feb 5: Kuwait Telecommunications Company (stc), a world-class digital leader providing innovative services and platforms to customers and enabling the digital transformation in Kuwait, announced its financial results for the financial year ended 31 December 2024, highlighting the most significant achievements, financial and operational performance in addition to the social initiatives made by the company during 2024.

Commenting on the announcements of these results, Eng. Muataz Al-Dharrab, the company’s CEO, stated: "Kuwait Telecommunications Company (stc) has achieved a number of financial and operational milestones during the financial year ended December 31, 2024. This reflects the company’s commitment to achieving its strategic objectives and strengthening its position as a leader in the telecommunications and ICT market. In line with the rapid developments in the sector and the growing demand for digital services, stc consistently strives to meet market needs by offering the latest comprehensive and integrated digital and technological solutions for both the individual and enterprise sectors. Furthermore, stc is committed to making every effort to enhance its infrastructure, expand its product portfolio, and deliver top-notch services with the aim of enriching customer experience, increasing market share, and creating added value for its shareholders.

Driven by our digital transformation strategy and the increasing demand for digitization, we have refreshed our corporate strategy, “r.e.a.c.h.”, during the year. This strategy is intended to be implemented over the next three years and reflects stc’s forward-looking vision. It aims to contribute to shaping the digital future, promote sustainable growth that benefits all stakeholders, and pave the way for achieving further milestones in the years to come in addition to enhancing profitability."

Commenting on the key achievements of stc during the financial year ended December 31, 2024, Eng. Muataz Al-Dharrab, said: "stc launched several projects, during the fourth quarter of 2024, targeting both the individual and enterprise sectors aimed at delivering an unparalleled experience to our customers. The company has also adopted modern technologies to enhance the level of services in addition to effectively and innovatively meeting customer aspirations.

stc takes pride in receiving numerous prestigious awards that reflect its excellence and leadership in digital solutions and information technologies. These awards highlight the company's advanced digital capabilities and its active role in supporting SMEs - Small and Medium Enterprises in achieving their digital transformation strategies.

In line with our strategic vision to deliver innovative services and platforms to our customers, enable digital transformation in Kuwait, and adapt to the rapid developments in the telecommunications and IT market, we have successfully launched a new dynamic and flexible operating model for stc and its subsidiaries. This model aims to enhance the efficiency of our internal operations, enable us to make strategic investments, and seizing promising opportunities in the market more effectively."

Commenting on the announcement of the financial results as of December 31st of 2024, Aldharrab stated: “stc has achieved outstanding financial results during the financial year ended December 31st, 2024, with total revenue reaching KD 336.5 mn by the end of December 2024 with a growth rate of 2.8% compared to KD 327.4 mn in 2023. The main reason for this growth is attributed to the increase in the Consumer sector revenues, which constitute 76% of total revenues. Meanwhile, Business sector revenues accounted for 24% of the company's total revenue during the financial year ended December 31, 2024. This is the result of efforts to enhance the company's business model, develop digital services, and provide integrated technological solutions for businesses across various sectors."

Aldharrab added: “These outcomes resulted in a growth of EBITDA by 0.3% to reach KD 85.3 mn during the financial year ended December 31, 2024, compared to KD 85.1 mn in 2023, supported by the increase in stc’s revenue.

As for the net profit, it amounted to KD 31.4 mn (EPS 31 Fils) in the financial year ended December 31, 2024, compared with KD 32.7 mn (EPS 33 Fils) in 2023. Despite the decrease in net profit, which is primarily attributed to the financial impact of the early retirement plan, this strategic initiative reflects our commitment to optimizing operations while recognizing the valuable contributions of stc employees. Excluding the non-recurring expenses related to the early retirement plan, the net profit for 2024 amounts to approximately KD 33.3 mn, achieving a growth rate of 1.8% compared to 2023.

These results, along with the continued focus on efficiency and innovation, highlight stc's ability to enhance profitability and achieve sustainable growth. It is worth noting that stc's customer base reached approximately 2.3 million customers by the end of December 2024, reflecting the ongoing success in attracting more customers and providing high-quality services.”

Commenting on the company’s financial position as of December 31, 2024, Dr. Abdulrahman stated: "The company’s total assets amounted to KD 462.2 mn at the end of December 2024, while total shareholders’ equity reached KD 240.5 mn. Additionally, the company has a strong solvency position among telecommunications companies in the Middle East.

The Board of Directors has recommended distributing cash dividends to shareholders at 35 fils per share, representing 35% of the nominal value of the share for the year 2024. This recommendation is subject to the approval of the company’s Annual General Meeting. This decision reflects stc’s confidence in the progress of its business, the strength of its financial position, and the robustness of its cash flows."

In 2024, stc issued its first standalone Sustainability Report, demonstrating our unwavering commitment to sustainability and corporate social responsibility. Throughout the year, we launched a series of initiatives aimed at promoting sustainable resource management, enhancing transparency, and raising awareness about the importance of sustainability and its impact on the company and society. Our commitment to sustainability extends to integrating environmental, social, and governance (ESG) standards into all our operations, contributing to Kuwait’s Vision 2035, "New Kuwait," for a sustainable future, and driving positive change in alignment with national and global sustainable development goals.”

Aldharrab also emphasized: "Recognizing the importance of defining a financial strategy to achieve success and sustainability, stc is committed to periodically reviewing and updating its financial strategy to align with the company’s ambitious strategic projects. Accordingly, the efficiency of stc’s financial strategy contributes to achieving its vision, diversifying investments, and managing its financial resources effectively, which strengthens its leadership position in the telecommunications sector, ensures meeting customer needs, and delivers added value to shareholders.

stc is also committed to regularly reviewing the company’s key performance indicators alongside successfully executing its projects, supported by digital solutions and its long-term plans. These efforts align with the company's strategic and financial objectives, contributing to enhanced operational efficiency and the implementation of best governance practices to ensure operational sustainability and achieve excellence."