Saudi’s stc Group reports 85.7% net profit surge in 2024

Saudi Arabia’s stc Group reported a robust financial performance for 2024, with net profit soaring 85.7 per cent year-on-year to SAR24.69bn ($6.59bn), driven by strong subsidiary growth and cost efficiency measures.

Revenues for the year rose 5.7 per cent to SAR75.89bn, while gross profit increased 7.4 to SAR37.3bn.

Operating profit climbed 9.6 per cent to SAR14.43bn, and earnings before interest, taxes, zakat, depreciation, and amoritsation (EBITDA) reached SAR23.93bn, up 6.6 per cent from 2023.

The telecom giant declared a SAR0.55 per share dividend for Q4 2024, in line with its dividend distribution policy.

Additionally, it announced an extra cash dividend of SAR2 per share, taking total 2024 distributions to SAR3.75 per share.

stc Group reported 16 per cent subsidiary growth

stc group CEO Olayan Alwetaid attributed the strong results to the group’s 16 per cent subsidiary growth and the execution of a cost-efficiency programme. “These results reflect the successful execution of the group’s strategy and the achievement of its financial and operational plans,” he said. Excluding one-off items, net profit rose 13 per cent.

Among key developments, stc secured a SAR32.64bn contract to build and operate telecom infrastructure for a government entity.

It also launched a digital bank after securing approval from the Saudi Central Bank and finalised the sale of a 51 per cent stake in its tower unit, TAWAL, to the Public Investment Fund (PIF). The deal paves the way for TAWAL’s merger with PIF’s Golden Lattice Investment to create a global telecom infrastructure player.

Internationally, stc obtained Spanish government approval to increase its stake in Telefónica (TEF.MC), raising its voting rights from 4.97  to 9.97 per cent and securing a board seat as part of its global expansion strategy.

SAR10bn dividend proposed

Following the strong financial results, stc’s board proposed an additional SAR10bn cash dividend for 2024, reinforcing its commitment to shareholder returns.

The company also expanded its strategic partnerships, signing agreements with Diriyah Company and New Murabba to enhance digital infrastructure for key Saudi giga-projects. “These partnerships reaffirm the group’s commitment to advancing digital transformation in the kingdom,” Alwetaid added.

stc retained its position as the most valuable telecom brand in the Middle East for a fifth consecutive year and climbed to ninth globally, with its brand value rising 16 per cent to SAR60.4bn, according to Brand Finance.

Additionally, local content contribution grew to 44.32 per cent in 2024, with spending exceeding SAR16bn.

stc Group, which operates across the Middle East, North Africa, and Europe, provides digital infrastructure, cloud computing, cybersecurity, IoT, and digital payments solutions.

Read: Saudi Arabia’s stc Group secures SAR32.64bn government contract