The Saudi Telecom Company (STC) achieved an increase of 7.6% in annual profits, to reach, after zakat and tax, 12.1 billion riyals in 2022, compared to 11.3 billion riyals in 2021.
According to Arabia Net, the profits of the Saudi Telecom Company increased by 5.5%, to reach 2.8 billion riyals during the fourth quarter of 2022, compared to 2.6 billion riyals in the fourth quarter of 2021.
The value of operating profits during the past year amounted to 15 billion riyals, compared to 13.1 billion riyals in 2021, with a growth rate of 14.9%.
STC said that the increase in net profit during 2022 amounted to 860 million riyals compared to the previous year, mainly due to reasons including the increase in revenues by 4.424 million riyals, which was offset by a slight increase in the cost of revenues by 824 million riyals, as it was positively affected by the reversal of the commitment provision. Potential amount of 1.079 million riyals, and this led to an increase in the total profit by 3.599 million riyals.
It stated that, on the other hand, operating expenses increased by 1.639 million riyals, mainly due to the increase in general and administrative expenses by 837 million riyals, selling and marketing expenses by 524 million riyals, and depreciation and amortization expenses by 277 million riyals.
The total other expenses also increased by 1.126 million riyals, mainly due to recording a provision for impairment in value against the investment in Binaryang GSM Holding Group by 1.259 million riyals compared to 177 million riyals in the previous year, as a result of the decrease in the fair value due to declining conditions market and traded share price for one of its main investments in the Malaysian market, which led to a re-evaluation of this investment based on these factors.
Financing costs increased by 78 million riyals, which was offset by an increase in financing revenues by 225 million riyals, and the cost of the early retirement program increased by 52 million riyals.
With regard to zakat and income tax, it increased by 43 million riyals.
Distribution of cash dividends for the fourth quarter
STC announced the distribution of cash dividends to shareholders for the fourth quarter of 2022, at a rate of 4%, to the nominal share value.
She added that this comes in line with the dividend distribution policy for a period of three years, which started from the fourth quarter of 2021, and which was approved during the Ordinary General Assembly meeting on 11-30-2021. In addition to the amendment to the dividend policy, which was approved at the Extraordinary General Assembly on 8-30-2022, by distributing 0.40 riyals per share for each quarter.
The total amount distributed is about 1,992.87 million riyals, on the number of shares entitled to profits, 4,982.18 million shares.
The eligibility for dividends will be for shareholders who own shares at the end of trading on Sunday 06-8-1444 AH corresponding to 26-2-2023 AD, and who are registered in the STC shareholder register at the Depository Center at the end of the second trading day following the due date.
STC stated that the distribution date will be on Thursday 8-24-1444 AH, corresponding to 3-16-2023 AD.
The total number of non-dividend treasury shares allocated to the employee incentive shares program reached 17,821,798 shares until the end of the fourth quarter of 2022.
