Saudi Telecom Company (stc) announces its interim condensed consolidated financial results for the period ending on 31-12-2020 (Twelve Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 15,213 | 13,265 | 14.685 | 14,881 | 2.231 |
| Gross Profit (Loss) | 8,489 | 8,360 | 1.543 | 8,971 | -5.372 |
| Operational Profit (Loss) | 3,290 | 2,400 | 37.083 | 3,460 | -4.913 |
| Net Profit (Loss) after Zakat and Tax | 2,683 | 2,321 | 15.596 | 2,766 | -3 |
| Total Comprehensive Income | 2,507 | 2,457 | 2.035 | 2,912 | -13.907 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 58,949 | 54,368 | 8.425 |
| Gross Profit (Loss) | 33,997 | 32,391 | 4.958 |
| Operational Profit (Loss) | 12,816 | 12,480 | 2.692 |
| Net Profit (Loss) after Zakat and Tax | 11,085 | 10,665 | 3.938 |
| Total Comprehensive Income | 10,571 | 10,163 | 4.014 |
| Total Share Holders Equity (after Deducting Minority Equity) | 64,038 | 61,763 | 3.683 |
| Profit (Loss) per Share | 5.54 | 5.33 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The increase of SR 362m in net profit for the 4th quarter of 2020 compared to the comparable quarter last year was attributed mainly to the following: - The increase in revenues by SR 1,948m, while cost of revenue increased by SR 1,818m, mainly due to the increase in government and access charges. - The decrease in operating expenses by SR 760m due to the decrease in selling and marketing expenses in an amount of SR 548m as a result of the increase in the costs of customer acquisition, and the launch of stc’s and its subsidiaries new brand in the comparable quarter last year. Further, depreciation and amortization expenses also decreased by SR 161m. - The booking of other income and (expenses) in an amount of SR (160m) during the current quarter as compared to SR 86m, mainly due to the booking of net other (losses) in an amount of SR (58m), as compared to net other gains in an amount of SR 198m, and the decrease in finance income and the net other income by SR 64m and SR43m (respectively). Further, zakat and income tax increased by SR 325m, mainly due to receiving an additional Zakat assessment. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is | The decrease of SR (83m) in net profit for the 4th quarter of 2020 as compared to the last quarter was attributed mainly to the following: - Although the revenues increased by SR 332m, yet, the cost of revenues increased by SR 813m, mainly due to the increase in devices sale costs and the increase in government and access charges. - The decrease in operating expenses by SR 312m, due to the decrease in selling and marketing expenses by SR 455m, mainly due to the increase in doubtful debt provision in the previous quarter. - The booking of other income and (expenses) in an amount of SR (160m) during the current quarter as compared to SR (338m), mainly due to the decrease in the cost of early retirement by SR 100m. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The increase in net profit for 12 months period in 2020 by SR 421m compared to the comparable period last year, was mainly due to the following: - The increase in revenues by SR 4,582m, while cost of revenues increased by SR 2,976m, mainly due to the increase in devices sale costs and the increase of government and access charges. - The increase in operating expenses by SR 1,271m, mainly due to an increase in selling and marketing expenses in an amount of SR 458m which was mainly as a result of the increase in doubtful debt provision in the current period, and the increase in both depreciation and amortization expenses in an amount of SR 575m and general and administration expenses in an amount of SR 237m. - The booking of other income and (expenses) in an amount of SR (369m) in current period, as compared to SR (793m), mainly due to the gains booked in the current period with respect to selling the company’s direct ownership in Careem after completing Uber’s acquisition. Further, zakat and income tax increased by SR 409m, mainly due receiving an additional Zakat assessment. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to conform with the classification used for the period ended 31 December 2020. |
| Additional Information | Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) for the 12 months period amounted to SR 22,175m compared to SR 21,265m for the corresponding period last year, with an increase of 4.28%, and for the fourth quarter it reached SR 5,716m, compared to SR 4,987m for the corresponding quarter last year, with an increase of 14.62%. The total number of Treasury shares for Employee Stock Incentive Plan stood at 2,982,700 shares at the end of the fourth quarter 2020.As a result, basic earnings per share was calculated based on the weighted average number of ordinary shares in an amount of 1,999,207 shares (in thousand) for the 4th quarter and 12M period 2020. For more information, please refer to the investor relations press release attached to the announcement. |
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