Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P. (stc) — 6M 2023 Earnings Presentation
27 slides from Kuwait Telecommunications's earnings presentation, 2023
Slide 1: Investors Presentation – 6M 2023
Kuwait Telecommunications Company K.S.C.P. Investors Presentation – 6M 2023
Slide 2: Table of content
Table of content stc’s History in Brief 3 stc Kuwait and its subsidiaries 4 Vision, Mission & Values 5 Board of Directors 6 Executive Management 7 Key Milestones 8 Shareholder’s Structure 9 Kuwait’s 2023 Macroeconomic Key Indicators 10 Kuwait’s Macroeconomic Environment 11 Population & Penetration 1
Slide 3: stc’s History in Brief
stc’s History in Brief Kuwait Telecommunications Company K.S.C.P. (stc) is a Kuwaiti Shareholding Company incorporated pursuant to Amiri decree No. 187 on 22 July 2008 to operate and manage the third GSM mobile network in Kuwait as per Law No. 2 of 2007. The shares of the Parent Company were listed
Slide 4: stc Kuwait and its subsidiaries operating in the ICT and B2B space
stc Kuwait and its subsidiaries operating in the ICT and B2B space stc Kuwait Subsidiaries Enterprise Solutions by stc E-Portal JMT AL-Dar CDN H3 Subsidiary under stc Subsidiary offering B2B connectivity under E-Portal Subsidiary and network services Subsidiaries under E-Portal offering offering B2B
Slide 5: Vision, Mission & Values
Vision, Mission & Values Values Vision Our vision is to be a world-class digital leader, providing innovative services and platforms to our customers and enable the digital transformation in Kuwait. stc is keen on presenting its customers with numerous telecommunications opportunities with the goal
Slide 6: Board of Directors
Board of Directors Position: Chairman Position: Vice Chairman Name: Dr. Mahmoud Ahmad Abdurrahman Name: Ameen Ben Fahad Ben Abdulaziz Al-Shiddi Representative of: Kuwait Investment Authority Representative of: Saudi Telecom Company (stc) Position: Board Member Position: Board Member Name: Eng. Moaee
Slide 7: Executive Management
Executive Management Position: Chief Executive Officer Position: Chief Strategy Officer Name: Eng. Maziad Alharbi Name: Eng. Nasser A. Al-Saadon Position: Chief Consumer Officer Position: Chief Corporate Affairs Officer Name: Eng. Amer Atoui Name: Mr. Issam Al Asousi Position: Chief Technology Offic
Slide 8: Key Milestones
Key Milestones VIP Customer stc wins Sharjah Service Award Gulf Top 10 Business Award Won the "2017 2018 Speedtest Completes Award“ by Ookla Acquisition of The first in First to introduce nationwide 4G company Qualitynet – the stc and Virgin Kuwait to Apple iPhone LTE Coverage leadin
Slide 9: Shareholders' Structure
Shareholders' Structure 52% 23% 25% Kuwaiti Governmental Saudi Telecom Public Shareholders Entities stc KSA, the leading regional The Kuwaiti government holds 23% Public Share holders consists of telecom operator, won the bid for of stc’ capital through different companies, portfolios, funds a
Slide 10: Kuwait’s 2023 Macroeconomic Key Indicators
Kuwait’s 2023 Macroeconomic Key Indicators GDP Growth Rate Inflation Rate* Unemployment Rate* 0.9% 2.8% 1.3% GDP Per Capita* Monthly Lending Rate Money MKT Rate 16,229 KWD 4.25% 4.5% Kuwait Credit Rating KIBOR (% p.a.) Moody’s S&P Fitch 1M 6M 1Y A1 A+ AA- 4.000 4.5000 4.7500 Source: CBK, IMF & Moody
Slide 11: Kuwait’s Macroeconomic Environment
Kuwait’s Macroeconomic Environment Real GDP Growth Inflation Rate (%) GDP, current prices (USD Bn.) Real GDP growth (Annual % change) Inflation rate, end of period consumer prices (Annual % change) 10.0% 184.6 200 4.8% 162.7 164.7 4.2% 138.2 8.2% 5.0% 136.2 136.8 150 3.6% 114.6 120.7 109.4 105.9 3.0
Slide 12: Kuwait’s Macroeconomic Environment…(Cont’d)
Kuwait’s Macroeconomic Environment…(Cont’d) As of December 2022 Kuwait Population Population by Age Group Population (Mn.) Growth Rate (%) 10.0% 5.00 8.0% 4.78 4.74 123,627 4.67 4.80 6.0% 4.62 8.0% 3% 866,892 4.50 4.60 579,715 12% 4.0% 4.41 4.39 18% 2.0% 4.24 3.6% 4.1% 4.40 3.2% 2.7% 3.3% 0.0% 4.09
Slide 13: Population & Penetration
Population & Penetration Current Population Current Penetration 4.74 Million 185% Kuwait Population (Million) & Penetration Rate (%) 6.0 250% 205% 200% 5.0 194% 191% 182% 183% 185% 200% 176% 172% 171% 155% 160% 4.0 152% 133% 150% 3.0 4.62 4.78 4.67 4.74 4.74 100% 4.24 4.41 4.50 4.39 2.0 3.89 4.09 3.
Slide 14: Our 2023-2025 Strategy “LEAD”
Our 2023-2025 Strategy “LEAD” stc’s Lead Strategy aspires to LEAD the Kuwait telco and ICT market by offering innovative services, growing priority segments and deploying an efficient and digital operating model stc KWT LEAD L E A D Strategy Lift the core by Expand ICT business in Accelerate innovat
Slide 15: Market Share
Market Share Total Subscriber Base in Kuwait (Mn) Telecom Sector Revenues in Kuwait (KWD Mn) Total Subscribers in kuwait (Mn) stc Subcribers (Mn) Total Telecom Revenue in Kuwait (KWD Mn) stc's Revenue (KWD Mn) 915 7.7 7.7 7.9 841 860 859 7.6 7.4 7.6 814 825 7.2 7.1 788 799 7.0 7.0 753 6.41 690 717 6
Slide 16: Financial Results
Financial Results Key Figures & Ratios 6M-2022 6M-2023 Change The six months ended 30 June 2023 Subscribers (Mn) 2.2 2.5 13.9% stc’s revenue increased by 13.5% during the six months period Revenue (KD Mn) ended 30 June 2023 to reach KD 174.6 mn, compared to KD 153.8 mn 153.8 174.6 13.5% recorded d
Slide 17: Financial Results - Highlights Annual and YTD-23
Financial Results - Highlights Annual and YTD-23 Revenue (KD Million) EBITDA (KD Million) EBITDA (KD Million) EBITDA Margin (%) 336.4 35% 83.8 82.0 90 77.8 79.6 287.7 287.9 293.7 283.2 296.3 30% 71.1 73.4 26% 80 24% 70 25% 29% 27% 26% 27% 60 20% 25% 24% 174.6 40.2 42.1 50 153.8 15% 40 30 10% 20 5% 1
Slide 18: Financial Results - Highlights Quarterly
Financial Results - Highlights Quarterly Revenue (KD Million) EBITDA (KD Million) EBITDA (KD Million) EBITDA Margin (%) 28% 95.6 30% 27% 27% 26% 26% 25 87.0 86.6 88.0 25% 21% 25% 25% 82.5 23% 76.8 76.9 25% 22.6 20 74.4 69.8 69.6 20.3 19.9 18.9 19.6 21.6 20% 18.5 21.4 20.5 20.3 15 15% 10 10% 5% 5 0%
Slide 19: Financial Results - Highlights
Financial Results - Highlights Total Debt / Equity (KD Million) Total Assets (KD Million) Total Debt (KD Million) Debt to Equity Ratio (x) 424.4 425.4 391.1 393.8 0.20 25 374.2 0.10 0.09 0.10 0.10 0.06 0.05 305.4 0.00 0.02 20 273.2 0.00 -0.10 15 -0.20 23 23 20 10 -0.30 9 10 5 -0.40 0 5 -0.50 0 2017
Slide 20: Cash Dividends
Cash Dividends Cash Dividends Per Share (Fils) Dividends Payout Ratio (%) 93% 91% 30 30 30 67% 25 57% 20 15 35% 40% 5 13% 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 *From 2016 until 2021, cash dividends per share is adjusted based on stc’s new number of shares Stock Price
Slide 21: Stock Performance
Stock Performance Data as of 30 June 2023 Closing Price (KD) 0.577 PE (X) 18.0 Paid up Capital (KD Million) 99.9 PB (X) 2.5 Market Cap (KD Million) 576.3 Dividend Yield (%) 5.2 % Rebased Index Since stc’s Listing Date 14 Dec 2014 – Stock Performance vs. KSE and Telecom weighted Indices STC's Stock P
Slide 22: Stock Performance – Key Events Driving stc’s Stock Price
Stock Performance – Key Events Driving stc’s Stock Price Traded Shares Closing Price Shares Fils 08 February 2023 16,000,000 900 Announcement of stc’s FY2022 10 January 2023 Financial Results & Dividends 04 April 2023 14,000,000 Announcement of stc’s addition to the BK main 50 The Ex Dividends Date
Slide 23: Appendix
Appendix Balance Sheet (2020 – June 2023) Income Statement (FY 2020 – 6M 2023) Page | 23
Slide 24: Balance Sheet (2020–June 2023)
Balance Sheet (2020–June 2023) 2020 2021 2022 June-2023 Balance Sheet KD Mn KD Mn KD Mn KD Mn Assets Property and equipment 190.4 185.0 171.2 164.6 Goodwill and intangible assets 25.0 27.2 42.1 43.6 Trade and other receivables - 16.0 5.1 4.0 Total non-current assets 215.4 228.2 218.4 212.1 Inventori
Slide 25: Income Statement (FY 2020–6M 2023)
Income Statement (FY 2020–6M 2023) Income Statement 2020 2021 2022 6M-2022 6M-2023 KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 283.2 296.3 336.4 153.8 174.6 Operating expenses (147.4) (158.8) (189.3) (83.1) (97.2) Staff costs (24.2) (24.6) (27.2) (13.0) (13.6) Expected credit losses on trade & other recei
Slide 26: Digital Annual Reports
Digital Annual Reports 2021 2022 Page|| 26 Page 26
Slide 27: Thank you
Thank you Investor Relations Department: : Investor.relations@stc.com.kw : +965 5000 1911 : www.stc.com.kw stc Kuwait Kuwait Telecommunication Company (stc) stc_Kuwait @stc_Kuwait
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