Announcement • Jun 13
stc group and Huawei Launch Green Telco Cloud, Accelerating the Future of Sustainable Telecom in the Region stc group announced the successful deployment of its Green Telco Cloud, a new cloud-based platform designed to deliver telecom services using fewer physical resources and significantly less energy. Developed in collaboration with Huawei, the platform brings together computing, storage, and networking into one integrated environment built for long-term efficiency and digital scalability. Built on Huawei's cloud-native architecture, the Green Telco Cloud integrates energy-efficient servers equipped with dynamic power management and adaptive Central Processing Unit (CPU) frequency scaling into a unified, automated and converged infrastructure. The platform is managed through a centralized dashboard that provides full-stack telemetry, carbon impact analytics, and automated shutdown of idle resources. By consolidating network functions within a single intelligent platform, stc group delivers faster, greener, and more efficient services while reducing energy consumption, lowering emissions, and enabling next-generation technologies such as 5G-A. The Green Telco Cloud runs on three layers. The hardware foundation uses compact, energy-aware servers that adjust power use based on traffic demand. The platform software enables service flexibility across both traditional systems and container-based environments. A centralized operations layer oversees performance, tracks environmental data, and powers down idle equipment when not in use. stc group and Huawei validated the platform through joint lab trials using Huawei's latest Green technologies, including power-efficient chipsets and intelligent controls. The system achieved up to 20 percent less energy consumption and a 40 percent reduction in physical infrastructure, with measurable improvements in operational simplicity. This deployment is part of stc group's broader efforts to build digital infrastructure that grows responsibly while delivering faster, smarter, and more energy-efficient services. As Saudi Arabia advances its digital transformation goals, this initiative reinforces stc group's leadership in shaping telecom systems where innovation and sustainability move forward together. Announcement • May 23
Saudi Telecom Company to Report Q3, 2026 Results on Oct 28, 2026 Saudi Telecom Company announced that they will report Q3, 2026 results on Oct 28, 2026 Announcement • May 21
Saudi Telecom Company to Report Q2, 2026 Results on Jul 29, 2026 Saudi Telecom Company announced that they will report Q2, 2026 results on Jul 29, 2026 Declared Dividend • Apr 30
Dividend of ر.س0.55 announced Shareholders will receive a dividend of ر.س0.55. Ex-date: 3rd May 2026 Payment date: 20th May 2026 Dividend yield will be 5.0%, which is higher than the industry average of 4.7%. Sustainability & Growth Dividend is covered by earnings (55% earnings payout ratio) but not covered by cash flows (111% cash payout ratio). The dividend has increased by an average of 3.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 8.5% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 29
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: ر.س0.74 (up from ر.س0.73 in 1Q 2025). Revenue: ر.س19.9b (up 3.8% from 1Q 2025). Net income: ر.س3.70b (up 1.3% from 1Q 2025). Profit margin: 19% (in line with 1Q 2025). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 1% per year. Announcement • Apr 29
Saudi Telecom Company announces Quarterly dividend, payable on May 20, 2026 Saudi Telecom Company announced Quarterly dividend of SAR 0.5500 per share payable on May 20, 2026, ex-date on May 03, 2026 and record date on May 04, 2026. Announcement • Apr 06
Saudi Telecom Company, Annual General Meeting, May 06, 2026 Saudi Telecom Company, Annual General Meeting, May 06, 2026, at 19:00 Arab Standard Time. Location: riyadh Saudi Arabia Announcement • Mar 13
Saudi Telecom Company to Report Q1, 2026 Results on Apr 28, 2026 Saudi Telecom Company announced that they will report Q1, 2026 results on Apr 28, 2026 Buy Or Sell Opportunity • Mar 04
Now 21% overvalued The stock has been flat over the last 90 days, currently trading at ر.س42.44. The fair value is estimated to be ر.س35.00, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 5.3% per annum. Earnings are also forecast to grow by 3.5% per annum over the same time period. Reported Earnings • Feb 20
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: ر.س2.97 (up from ر.س2.15 in FY 2024). Revenue: ر.س77.8b (up 2.5% from FY 2024). Net income: ر.س14.8b (up 38% from FY 2024). Profit margin: 19% (up from 14% in FY 2024). The increase in margin was primarily driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.1%. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 7% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Feb 19
Dividend of ر.س0.55 announced Dividend of ر.س0.55 is the same as last year. Ex-date: 24th February 2026 Payment date: 12th March 2026 Dividend yield will be 9.7%, which is higher than the industry average of 4.7%. Sustainability & Growth Dividend is not adequately covered by earnings (92% earnings payout ratio) nor is it covered by cash flows (242% cash payout ratio). The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 2.7% to bring the payout ratio under control. EPS is expected to grow by 19% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Feb 18
Saudi Telecom Company announces Quarterly dividend, payable on March 12, 2026 Saudi Telecom Company announced Quarterly dividend of SAR 0.5500 per share payable on March 12, 2026, ex-date on February 24, 2026 and record date on February 25, 2026. Buy Or Sell Opportunity • Jan 06
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 5.6% to ر.س42.06. The fair value is estimated to be ر.س52.59, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.1% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 5.1% per annum. Earnings are also forecast to grow by 6.8% per annum over the same time period. Buy Or Sell Opportunity • Dec 18
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at ر.س42.06. The fair value is estimated to be ر.س52.59, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.1% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 5.0% per annum. Earnings are also forecast to grow by 7.1% per annum over the same time period. Announcement • Nov 27
Saudi Telecom Company to Report Fiscal Year 2025 Results on Feb 23, 2026 Saudi Telecom Company announced that they will report fiscal year 2025 results on Feb 23, 2026 Reported Earnings • Nov 06
Third quarter 2025 earnings: EPS exceeds analyst expectations Third quarter 2025 results: EPS: ر.س0.82 (down from ر.س0.85 in 3Q 2024). Revenue: ر.س19.3b (up 3.3% from 3Q 2024). Net income: ر.س4.11b (down 3.5% from 3Q 2024). Profit margin: 21% (down from 23% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 27%. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Declared Dividend • Nov 05
Dividend of ر.س0.55 announced Shareholders will receive a dividend of ر.س0.55. Ex-date: 9th November 2025 Payment date: 26th November 2025 Dividend yield will be 9.4%, which is higher than the industry average of 4.7%. Sustainability & Growth Dividend is covered by earnings (85% earnings payout ratio) but not covered by cash flows (354% cash payout ratio). The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 23% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 04
Saudi Telecom Company announces Quarterly dividend, payable on November 26, 2025 Saudi Telecom Company announced Quarterly dividend of SAR 0.5500 per share payable on November 26, 2025, ex-date on November 09, 2025 and record date on November 10, 2025. Announcement • Sep 04
Saudi Telecom Company to Report Q3, 2025 Results on Oct 30, 2025 Saudi Telecom Company announced that they will report Q3, 2025 results on Oct 30, 2025 Reported Earnings • Aug 03
Second quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2025 results: EPS: ر.س0.77 (up from ر.س0.62 in 2Q 2024). Revenue: ر.س19.5b (up 2.6% from 2Q 2024). Net income: ر.س3.82b (up 23% from 2Q 2024). Profit margin: 20% (up from 16% in 2Q 2024). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) exceeded analyst estimates by 22%. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has increased by 1% per year. Announcement • Jul 29
Saudi Telecom Company announces Quarterly dividend, payable on August 19, 2025 Saudi Telecom Company announced Quarterly dividend of SAR 0.5500 per share payable on August 19, 2025, ex-date on July 31, 2025 and record date on August 03, 2025. Upcoming Dividend • May 08
Upcoming dividend of ر.س2.00 per share Eligible shareholders must have bought the stock before 14 May 2025. Payment date: 02 June 2025. Payout ratio is on the higher end at 85%, and the cash payout ratio is above 100%. Trailing yield: 9.2%. Within top quartile of Saudi dividend payers (5.3%). Higher than average of industry peers (5.0%). Reported Earnings • Apr 30
First quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2025 results: EPS: ر.س0.73 (up from ر.س0.66 in 1Q 2024). Revenue: ر.س19.2b (flat on 1Q 2024). Net income: ر.س3.65b (up 11% from 1Q 2024). Profit margin: 19% (up from 17% in 1Q 2024). Revenue missed analyst estimates by 4.1%. Earnings per share (EPS) exceeded analyst estimates by 5.1%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 1% per year and the company’s share price has also increased by 1% per year. Major Estimate Revision • Apr 28
Consensus EPS estimates increase by 54% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from ر.س2.91 to ر.س4.48. Revenue forecast steady at ر.س80.0b. Net income forecast to grow 109% next year vs 14% growth forecast for Telecom industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س46.21. Share price rose 3.4% to ر.س48.00 over the past week. Announcement • Apr 28
Saudi Telecom Company to Report Q2, 2025 Results on Jul 27, 2025 Saudi Telecom Company announced that they will report Q2, 2025 results at 10:00 AM, Arabian Standard Time on Jul 27, 2025 Declared Dividend • Apr 24
Dividend of ر.س2.00 announced Shareholders will receive a dividend of ر.س2.00. Ex-date: 14th May 2025 Payment date: 2nd June 2025 Dividend yield will be 7.0%, which is higher than the industry average of 4.7%. Sustainability & Growth Dividend is covered by earnings (81% earnings payout ratio) but not covered by cash flows (258% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 34% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 25
Saudi Telecom Company to Report Q1, 2025 Results on Apr 27, 2025 Saudi Telecom Company announced that they will report Q1, 2025 results at 10:00 AM, Arabian Standard Time on Apr 27, 2025 Major Estimate Revision • Mar 13
Consensus EPS estimates fall by 34% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from ر.س4.48 to ر.س2.96 per share. Revenue forecast steady at ر.س80.1b. Net income forecast to grow 40% next year vs 12% growth forecast for Telecom industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س45.01. Share price was steady at ر.س43.75 over the past week. Announcement • Mar 11
Juniper Networks Boosts Saudi Telecom Company's 5G Security Deployment with the Power of Automation Saudi Telecom Company and Juniper Networks announced that the two companies have worked together to further enhance the service provider's 5G-ready network security gateway (SGi) infrastructure with new automation features within its existing Juniper SRX next-generation firewall deployment. These new capabilities elevate user experiences, increase capacity and lower costs while maintaining the higher security efficacy and sustainability commitments. stc has fully embraced Juniper's AI-Native Security approach, which is an integral part of the Juniper AI-Native Networking Platform. By building end-to-end next-generation security rather than as an overlay, stc leverages better insight, automation and actions to protect users, applications and infrastructure. This creates a fully threat-aware, high-performance environment for stc's customers while keeping attackers at bay. The Automated Express Path+ software feature from Juniper has been activated in stc's Juniper Networks®? SRX 5800 Firewalls without the necessity for investing in new hardware. The new software automates the identification and accelerated flow of data. The upgraded security deployment can now process data efficiently up to 48% faster than before. stc's automation upgrade has enabled the company to gain significant CapEx and OpEx savings by streamlining the infrastructure's overall efficiency. For example, the power consumption required to run the SRX gateways is reduced by up to 30%, concurrently supporting sustainability by allowing the deployment of more potent systems within a compact footprint. As a result, there is a substantial reduction in the cost per gigabit processed. Customers using stc's wide range of business and consumer services will benefit from optimized performance and security rigor as a result of the automation. For example, network latency (which can cause 'jitter' that inhibits the quality of digital content) will be reduced by up to 600%, while the most stringent security policies are consistently and intelligently applied to data traffic at scale. Reported Earnings • Mar 09
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: ر.س2.15 (down from ر.س2.52 in FY 2023). Revenue: ر.س75.9b (up 5.7% from FY 2023). Net income: ر.س10.7b (down 14% from FY 2023). Profit margin: 14% (down from 18% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 78%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has remained flat. New Risk • Mar 08
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 104% Dividend yield: 9.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 18% per year for the foreseeable future. Minor Risk Dividend is not well covered by cash flows (104% cash payout ratio). Declared Dividend • Feb 28
Dividend of ر.س0.55 announced Shareholders will receive a dividend of ر.س0.55. Ex-date: 6th March 2025 Payment date: 24th March 2025 Dividend yield will be 6.1%, which is higher than the industry average of 4.7%. Sustainability & Growth Dividend is covered by both earnings (35% earnings payout ratio) and cash flows (55% cash payout ratio). The dividend has increased by an average of 6.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 49% over the next 3 years. However, it would need to fall by 61% to increase the payout ratio to a potentially unsustainable range. Announcement • Feb 27
Saudi Telecom Company announces Quarterly dividend, payable on March 24, 2025 Saudi Telecom Company announced Quarterly dividend of SAR 0.5500 per share payable on March 24, 2025, ex-date on March 06, 2025 and record date on March 09, 2025. Announcement • Feb 14
stc Group and Huawei Launch the Middle East's First Software Focused on Optimizing 5G Networks for Gaming stc Group and Huawei have successfully piloted the region's first 5G network software that uses AI to optimize connectivity for gaming and esports industries. The solution, technically known as an Intelligent Personalized Experience (IPE) 5G-Advanced solution, leverages 3rd Generation Partnership Project (3GPP) 5G Network Functions, such as the Network Data Analytics Function (NWDAF) and AI-enhanced User Plane Function (UPF). These advanced capabilities allow the network to monitor key metrics--including bandwidth, delay, and jitter--and optimize them in real-time using machine learning and AI. The result is an uninterrupted, high-quality gaming experience that adapts dynamically to user needs and network conditions - offering world-class connectivity needed to meet the increasing demand of the gaming industry market in the region and around the world. Announcement • Jan 13
Saudi Telecom Company to Report Q4, 2024 Results on Feb 26, 2025 Saudi Telecom Company announced that they will report Q4, 2024 results on Feb 26, 2025 Announcement • Nov 27
Saudi Telecom Company to Report Fiscal Year 2024 Results on Feb 20, 2025 Saudi Telecom Company announced that they will report fiscal year 2024 results on Feb 20, 2025 Reported Earnings • Nov 06
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: ر.س0.93 (down from ر.س0.98 in 3Q 2023). Revenue: ر.س18.6b (up 3.0% from 3Q 2023). Net income: ر.س4.64b (down 5.3% from 3Q 2023). Profit margin: 25% (down from 27% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 29%. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Oct 03
Now 21% undervalued Over the last 90 days, the stock has risen 13% to ر.س42.70. The fair value is estimated to be ر.س53.84, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.5% over the last 3 years. Earnings per share has grown by 7.9%. For the next 3 years, revenue is forecast to grow by 5.0% per annum. Earnings are also forecast to grow by 4.9% per annum over the same time period. Reported Earnings • Jul 28
Second quarter 2024 earnings: EPS exceeds analyst expectations Second quarter 2024 results: EPS: ر.س0.66 (up from ر.س0.61 in 2Q 2023). Revenue: ر.س19.2b (up 4.5% from 2Q 2023). Net income: ر.س3.30b (up 9.8% from 2Q 2023). Profit margin: 17% (in line with 2Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 25%. Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Declared Dividend • Jul 25
Dividend of ر.س0.40 announced Shareholders will receive a dividend of ر.س0.40. Ex-date: 29th July 2024 Payment date: 15th August 2024 Dividend yield will be 6.6%, which is higher than the industry average of 4.7%. Sustainability & Growth Dividend is covered by both earnings (59% earnings payout ratio) and cash flows (76% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 9.9% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 25
Saudi Telecom Company to Report Q3, 2024 Results on Oct 30, 2024 Saudi Telecom Company announced that they will report Q3, 2024 results on Oct 30, 2024 Reported Earnings • May 18
First quarter 2024 earnings released: EPS: ر.س0.66 (vs ر.س0.62 in 1Q 2023) First quarter 2024 results: EPS: ر.س0.66 (up from ر.س0.62 in 1Q 2023). Revenue: ر.س19.1b (up 5.1% from 1Q 2023). Net income: ر.س3.29b (up 5.7% from 1Q 2023). Profit margin: 17% (in line with 1Q 2023). Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Declared Dividend • May 10
Dividend of ر.س0.40 announced Shareholders will receive a dividend of ر.س0.40. Ex-date: 22nd May 2024 Payment date: 10th June 2024 Dividend yield will be 6.8%, which is higher than the industry average of 4.7%. Sustainability & Growth Dividend is covered by both earnings (60% earnings payout ratio) and cash flows (62% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 13% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 27
Saudi Telecom Company to Report Q1, 2024 Results on May 08, 2024 Saudi Telecom Company announced that they will report Q1, 2024 results on May 08, 2024 Reported Earnings • Mar 04
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: ر.س2.67 (up from ر.س2.44 in FY 2022). Revenue: ر.س72.3b (up 7.3% from FY 2022). Net income: ر.س13.3b (up 9.2% from FY 2022). Profit margin: 18% (in line with FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.4%. Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Feb 21
Saudi Telecom Company Recommends Special Cash Dividends for the Year 2023 Saudi Telecom Company announced that the Board of Directors has recommended to distribute a special cash dividend of SAR 1 for the year 2023 to the shareholders, and it will be presented to the General Assembly at its next meeting for voting. The eligibility of special cash dividends shall be for the shareholders registered at the end of 2nd trading day after the day of the General Assembly Meeting, which will be announced later. The Total amount distributed of SAR 4,984.50 Million. Announcement • Nov 24
Saudi Telecom Company to Report Fiscal Year 2023 Results on Feb 20, 2024 Saudi Telecom Company announced that they will report fiscal year 2023 results on Feb 20, 2024 Reported Earnings • Nov 07
Third quarter 2023 earnings released: EPS: ر.س0.98 (vs ر.س0.71 in 3Q 2022) Third quarter 2023 results: EPS: ر.س0.98 (up from ر.س0.71 in 3Q 2022). Revenue: ر.س18.1b (up 9.9% from 3Q 2022). Net income: ر.س4.90b (up 39% from 3Q 2022). Profit margin: 27% (up from 22% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.8% p.a. on average during the next 2 years, compared to a 4.2% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Buying Opportunity • Sep 14
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be ر.س48.12, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last 3 years. Earnings per share has grown by 5.1%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings is also forecast to grow by 9.5% per annum over the same time period. Announcement • Sep 07
Saudi Telecom Company (SASE:7010) acquired a 9.9% stake in Telefónica, S.A. (BME : TEF) for SAR 8.5 billion. Saudi Telecom Company (SASE:7010) acquired a 9.9% stake in Telefónica, S.A. (BME : TEF) for SAR 8.5 billion on September 5, 2023. The investment has been conducted, according to STC Group, through the acquisition of shares representing 4.9% of the share capital of Telefónica and through financial instruments that provides an economic exposure over other 5% of the share capital of the Company. Saudi Telecom Company (SASE:7010) completed the acquisition of a 9.9% stake in Telefónica, S.A. (BME : TEF) on September 5, 2023. Reported Earnings • Aug 04
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: EPS: ر.س0.60 (up from ر.س0.57 in 2Q 2022). Revenue: ر.س18.3b (up 8.2% from 2Q 2022). Net income: ر.س3.01b (up 6.0% from 2Q 2022). Profit margin: 16% (in line with 2Q 2022). Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) missed analyst estimates by 8.1%. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 2% per year. Announcement • Jul 31
Saudi Telecom Company to Report Q3, 2023 Results on Oct 30, 2023 Saudi Telecom Company announced that they will report Q3, 2023 results on Oct 30, 2023 Announcement • Jun 22
Saudi Telecom Company to Report Q2, 2023 Results on Jul 31, 2023 Saudi Telecom Company announced that they will report Q2, 2023 results on Jul 31, 2023 Buying Opportunity • Jun 22
Now 20% undervalued Over the last 90 days, the stock is up 12%. The fair value is estimated to be ر.س54.74, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has grown by 4.6%. For the next 3 years, revenue is forecast to grow by 4.8% per annum. Earnings is also forecast to grow by 6.5% per annum over the same time period. Buying Opportunity • May 23
Now 21% undervalued Over the last 90 days, the stock is up 26%. The fair value is estimated to be ر.س55.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has grown by 4.6%. Revenue is forecast to grow by 10.0% in 2 years. Earnings is forecast to grow by 14% in the next 2 years. Reported Earnings • May 18
First quarter 2023 earnings released: EPS: ر.س0.62 (vs ر.س0.61 in 1Q 2022) First quarter 2023 results: EPS: ر.س0.62 (up from ر.س0.61 in 1Q 2022). Revenue: ر.س18.2b (up 7.4% from 1Q 2022). Net income: ر.س3.11b (up 2.4% from 1Q 2022). Profit margin: 17% (in line with 1Q 2022). Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 4% per year. Upcoming Dividend • May 14
Upcoming dividend of ر.س0.40 per share at 3.6% yield Eligible shareholders must have bought the stock before 21 May 2023. Payment date: 07 June 2023. Payout ratio is a comfortable 66% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of Saudi dividend payers (4.2%). In line with average of industry peers (3.9%). Announcement • May 12
Saudi Telecom Company, Annual General Meeting, May 11, 2023 Saudi Telecom Company, Annual General Meeting, May 11, 2023, at 17:30 Coordinated Universal Time. Announcement • Nov 23
Saudi Telecom Company to Report Fiscal Year 2022 Results on Feb 20, 2023 Saudi Telecom Company announced that they will report fiscal year 2022 results on Feb 20, 2023 Board Change • Nov 16
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Non-Executive & Non-Independent Vice Chairman Yazeed Al-Humied was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 31
Third quarter 2022 earnings released: EPS: ر.س0.71 (vs ر.س0.59 in 3Q 2021) Third quarter 2022 results: EPS: ر.س0.71 (up from ر.س0.59 in 3Q 2021). Revenue: ر.س16.5b (up 4.7% from 3Q 2021). Net income: ر.س3.54b (up 21% from 3Q 2021). Profit margin: 22% (up from 19% in 3Q 2021). Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 2% per year. Announcement • Oct 28
Saudi Telecom Company Announces Interim Dividend for the Third Quarter of 2022, Payable on November 22, 2022 Saudi Telecom Company announced interim dividend for the third quarter of 2022 of SAR 0.40, Payable on November 22, 2022. Valuation Update With 7 Day Price Move • Aug 30
Investor sentiment deteriorated over the past week After last week's 59% share price decline to ر.س41.92, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 16x in the Telecom industry in Asia. Total loss to shareholders of 53% over the past three years.