Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — stc Kuwait — Investor Presentation (2024)
24 slides from Kuwait Telecommunications's investor presentation, 2024
Slide 1: stc Kuwait Investors Presentation FY-2024
stc Kuwait Investors Presentation FY- 2024 Investor Relations and M&A Kuwait Telecommunications Company K.S.C.P. 1
Slide 2: stc Kuwait overview
stc Kuwait overview Values Kuwait Telecommunications Company K.S.C.P. (stc), a subsidiary of Saudi Telecom Company, was established in 2008 under Amiri decree No. 187 to manage Kuwait's third GSM mobile network. As a leading telecom provider, stc offers innovative mobile, internet, and enterprise so
Slide 3: Shareholders' Structure
Shareholders’ Structure As at 31 December 2024 stc Kuwait's shareholder structure is anchored by strong strategic and institutional backing, with 51.8% ownership by Saudi Telecom and government entities, including the Kuwait Investment Authority and Public Institute for Social Security, holding a co
Slide 4: stc at a glance
stc at a glance As at 31 December 2024 16 2.3 Mn 66 2,903 100% Years in operations Subscribers Outlets Towers Coverage of Kuwait Populated Area Listed In KD 537.3 Mn KD 0.538 Subsidiaries %178 Boursa Kuwait Market Cap. Share Price Solutions by stc Kuwait Market FTSE e-Portal Holding Penetration MSCI
Slide 5: Strategic acquisitions ISP and ICT services serving the B2B segment
Strategic acquisitions ISP and ICT services serving the B2B segment 2019 2022 stc Kuwait focus is on consumer, Subsidiary under stc offering B2B Cloud, delivering services such as prepaid, Subsidiary under stc offering B2B Digital Solutions, System Integration, postpaid MBB and voice, and connectivi
Slide 6: Awards
Awards FY– 2024 solutions by stc wins top honour in ‘Best Use of #1 Ideal Employer Digital – Technology/Telecommunications’ For engineers and IT professionals in Kuwait according to Universum’s category 01 custom research in comparison with 19 of the strongest brands in Kuwait 05 At the MENA Digital
Slide 7: Operational Highlights
FY– 2024 Operational Highlights Strengthening the core services, expanding 1 operations, and investing in the infrastructure to cover Kuwait landscape. Securing multiple ICT projects across both 2 public and private sectors through stc’s subsidiaries. Refining the business model and cost 3 optimizat
Slide 8: Key Milestones
Key Milestones 2008 2012 2014 2019 2021 2023 • stc turns into • Listing on Kuwait • Acquisition of • stc and Virgin Mobile ▪ stc and Samsung ink new • Launches profitability during Stock Exchange Qualitynet – the Middle East & Africa partnership, expand commercially the fourth year of (KSE) leading
Slide 9: Lift the core, Expand ICT, Accelerate innovation, Deploy an efficient model
stc aspires to LEAD the Kuwait telco and ICT market by offering innovative 2 services, growing priority segments and deploying an efficient and digital pillars operating model Lift the core Expand ICT Accelerate innovation Deploy an efficient & by capturing growth business in scale and leveraging Gr
Slide 10: Kuwait's Macroeconomic Environment
Kuwait’s Macroeconomic Environment GDP current prices (USD Bn.) Real GDP growth (Annual % change) 200. 0 184.0 8. 0% Population (Mn.) Growth Rate (%) 1 80.0 162.7 163.7 161.8 4.92 5.20 130.0% 148.5 4.86 6. 0% 4.78 4.74 138.7 140.9 4.67 1 60.0 4.62 110.0% 5.9% 4.50 1.2 114.6 109.4 120.7 4.41 4. 0% 4.
Slide 11: Financial Performance Historical
Financial Performance Historical ‘s Revenue is comprised of Revenues Segmentation - 2024 the Consumer Sector which makes Revenue (KD Million) up to 76% of the company’s total revenue, and the Enterprise Sector 21% 25% revenues which accounts for 24% of 336.4 336.5 total revenue. 327.4 4% 336.5 293.7
Slide 12: Financial Performance Historical
Financial Performance Historical The increase in EBITDA is driven by EBITDA and EBITDA Margin Net Profit and Profit Margin the ongoing optimization of our revenue mix, coupled with the EBITDA (KD Million) EBITDA Margin (%) Net Profit (KD Million) Net Profit Margin (%) realization of synergies across
Slide 13: Financial Performance Historical
Financial Performance Historical Capex and Capex to Sales ‘s Capex rise is primarily Capex (KD Million) Capex To Revenue (%) due investments in network 70.0 58.5 29.0% 60.0 coverage, new sites expansion 24.0% 50.0 37.3 39.2 and the preparations for the 5G 19.0% 40.0 19.9% 26.2 28.1 25.0 Advanced “ne
Slide 14: Financial Performance Historical
Financial Performance Historical Total Assets (KD Million) 462.2 447.7 480.0 424.4 391.1 393.8 430.0 380 .0 374.2 330.0 280.0 230.0 Maintaining a strong balance sheet and key financial ratios, 180.0 2019 2020 2021 2022 2023 2024 driven by robust earnings growth and disciplined capital Total Liabilit
Slide 15: Financial Performance Historical
Financial Performance Historical Total Debt (KD Million) Total Debt / Equity (X) The KD 5.8 million decline in total 0.12 25.0 23.0 23.0 0.09 0.10 0.09 20.0 Debt in FY-2024 vs. FY-2023 0.10 17.3 20.0 0.07 underscores stc Kuwait’s strong 0.08 15.0 solvency position among leading 0.06 10.0 0.05 10.0 t
Slide 16: Market listing and valuation Highlights
Market listing and valuation Highlights Index constituents On February 11, 2024, stc Kuwait was upgraded to Boursa Kuwait’s Premier Market, reflecting its strong financial performance, market - MSCI Kuwait Index capitalization growth, and liquidity. This milestone enhances its visibility among inves
Slide 17: Share Performance Highlights
stc Investors P/E 16.3x Investors 998.7 Mn Number of Shares presentation BVPS Sustainability I 2024 presentation 240 fils P/B 2.3x I Q1-2024 Share Performance Paid Up Capital KD 99.9 Mn at stc small 610 630 510 550 470 490 530 570 590 2-Jan-24 12-Jan-24 22-Jan-24 1-Feb-24 11-Feb-24 21-Feb-24 2-Mar-2
Slide 18: Financial Performance Highlights
Financial Performance Highlights Dividends Payout Ratio (%) Cash Dividends* 113% 35 35 30 30 30 Dividend Yield (%)* 25 6.5% stc Kuwait demonstrates its commitment to shareholders with consistent dividend growth. 2019 2020 2021 2022 2023 2024 * *Dividend Yield has been calculated based on the FY-2024
Slide 19: Financial Performance Highlights
Financial Performance Highlights As at 31 December 2023 Adjusted Cash Dividends Per Cash Dividends Per Share (Fils) Share (Fils) Adjusted Dividends 35 35 60 60 30 30 30 50 25 30 40 30 35 35 15 20 Dividends Payout Ratio (%) 10 5 107% 113% 93% 91% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 2017
Slide 20: Sustainability at stc small move. Big impact
Sustainability at stc small move. Big impact ESG Framework: Caring for the Empowering Improving Operating with Promoting Digital Environment People Standards of Integrity Innovation Living & Technologies Objective: To Objective: To offer Objective: To make Objective: To Objective: To improve our pro
Slide 21: Appendix
Appendix ▪ Statement of Financial Position (2021 –2024) ▪ Income Statement (2021 –2024) 21
Slide 22: Statement of Financial Position (2021 – 2024)
Statement of Financial Position (2021 – 2024) 2021 2022 2023 2024 Statement of Financial Position KD Mn KD Mn KD Mn KD Mn Assets Property and equipment 185.0 171.2 161.9 166.3 Goodwill and intangible assets 27.2 42.1 40.7 41.7 Trade and other receivables 16.0 5.1 0.4 0.6 Contract Assets - 16.3 18.7
Slide 23: Statement of Income (2021 – 2024)
Statement of Income (2021 – 2024) 2021 2022 2023 2024 Income Statement KD Mn KD Mn KD Mn KD Mn Revenue 296.3 336.4 327.4 336.5 Operating expenses (158.8) (189.3) (170.6) (183.9) Staff costs (24.6) (26.7) (27.2) (25.6) Expected credit losses on trade & other receivables and contract assets (7.8) (11.
Slide 24: Shukran! Download our IR App
Shukran! ُ ًشكرا Ticker Boursa Kuwait: STC Bloomberg: STCKK Yahoo Finance: STC.KW Reuters: STC.KW Download our IR App A group of cell phones Description automatically generated Investor Relations Department: : Investor.relations@stc.com.kw : +965 5000 1911 : www.stc.com.kw stc Kuwait Kuwait Teleco