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Saudi Telecom Company (stc) announces its interim condensed consolidated financial results for the period ending on 31-12-2020 (Twelve Months)

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 15,21313,26514.68514,8812.231
Gross Profit (Loss) 8,4898,3601.5438,971-5.372
Operational Profit (Loss) 3,2902,40037.0833,460-4.913
Net Profit (Loss) after Zakat and Tax 2,6832,32115.5962,766-3
Total Comprehensive Income 2,5072,4572.0352,912-13.907
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 58,94954,3688.425
Gross Profit (Loss) 33,99732,3914.958
Operational Profit (Loss) 12,81612,4802.692
Net Profit (Loss) after Zakat and Tax 11,08510,6653.938
Total Comprehensive Income 10,57110,1634.014
Total Share Holders Equity (after Deducting Minority Equity) 64,03861,7633.683
Profit (Loss) per Share 5.545.33
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
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.

Attached Documents  

The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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