KUWAIT CITY, July 25: Kuwait Telecommunications Company (stc), a worldclass digital leader providing innovative services and platforms to customers and enabling the 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 in addition to the social initiatives made by the company during the first half of 2022.

Commenting on the announcements of these results, Dr. Mahmoud Ahmed Abdulrahman, stc’s Chairman, stated: “stc’s outlook with regards to the increased demand on the ICT integrated technologies and digital solutions is considered one of the key factors for executing Company’s corporate strategy of expanding its services in the B2B sector. Accordingly, stc has completed its acquisition on all the share capital of E-portal and its subsidiaries in the second quarter of 2022. This acquisition demonstrates stc’s commitment to grow its position in the ICT field by providing the best in class integrated technical solutions to its individuals and enterprise customers. With an increased focus on the ICT services, stc was able to capture new streams of revenue driven by the latest extensive demand on the digital communications and information technology services”. He pointed out: “stc is currently developing its operational strategy aimed at adding value through utilizing the capabilities of its subsidiaries specialized in providing suitable solutions to the enterprise sector in Kuwait. stc is; therefore, keen to maintain its position as a pioneer in the ICT services and the enterprise solutions”.

Dr. Abdulrahman noted that during Q2, stc managed to strengthen its extensive corporate social responsibility (CSR) program by launching and contributing to various initiatives that aimed to empower the community. The Company collaborated with different government entities, as well as companies within the private sector, in line with its CSR program that aims to create a larger impact within the community. Whereby, stc launched a series of campaigns and initiatives that actively engaged with members within the community while spreading awareness on various causes. Throughout these campaigns, stc primarily focused on tackling key issues within the areas of health, entrepreneurship, the environment, as well as sports and education. As a pioneer in Kuwait’s telecom and digital solutions sector, stc will continue to contribute through its rich, diverse, and widespread program with the sole objective of creating a positive and sustainable impact in the local community. This approach falls in line with stc’s vision to back and support the community by implementing initiatives and events that align with its robust social responsibility framework.

Commenting on stc’s financial position as of June 30, 2022, Dr. Abdulrahman said: “stc’s total assets reached KD 424.1mn by the end of June 2022, while total shareholders’ equity increased by 7% reaching KD 222.3mn. Moreover,stc has a strong solvency position among its peers in the Middle East”.

Commenting on stc’s achievements during the first half of 2022, Eng. Maziad Bin Nasser Al Harbi, stc’s CEO stated: “In the first half of 2022, stc was able to enhance its financial and operational performance,as well as improve its customer service with the dedication and commitment of its employees to implement the Company’s digital transformation strategy with the highest quality. In this regard, stc was also capable to provide the most efficient service delivery within the telecommunications and information technology sector. Driven by its refreshed strategy, promising outlook for the enterprise segment in Kuwait and in line with the latest rapid global developments in the ICT field, stc was eager to improve its efficiency and internal capabilities in this sector. Accordingly, 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 capture the investment opportunities in this field 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 announcement of company’s financial results for the six months period ended June 30, 2022, Eng. Maziad bin Nasser Al Harbi said: “stc generated good financial results driven by the increased demand on the integrated business solutions and the steady demand on the traditional telecommunications services in the Kuwaiti market.stc’s total revenue reached KD 153.8mn in the first half of 2022 with growth rate of 10.3% compared to KD 139.4mnin the previous year. stc managed to achieve this growth in revenue with the significant support from the increase in its customer base which has reached 2.2 million customers by the end of June 2022, representing a rise of 13.6% compared to that in June 2021”. Al Harbi noted:“Accordingly, stc’s EBITDA witnessed a growth of 4.5%to reach KD 40.2 million in the first half of 2022 compared to KD 38.5 million in the same period of 2021. Whereby, EBITDA margin reached 26.2% during the six months ended in 2022. As a result, the company’s net profit during the six months period ended 30June 2022reached KD 15.0 million (earnings per share 15fils)”.

Al-Harbi added: “In the first half of 2022, stc has successfully increased its share capital to reach KD 99.9 million through distributing 100% bonus shares to its shareholders. This decision came from stc’s positive outlook on creating an added value to its shareholders and place their interest on its top priorities. In this regard, stc’s management ensures developing long term financial policy to balance between its operational and financial performance that would positively reflect on its solvency and enhance its market position as a leader in the telecom industry and a pioneer in the digital transformation”.