Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P. (stc) — 9M 2022 Earnings Presentation
26 slides from Kuwait Telecommunications's earnings presentation, 2022
Slide 1: Investors Presentation – 9M 2022
Kuwait Telecommunications Company K.S.C.P. Investors Presentation – 9M 2022
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 2022 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. Omer
Slide 7: Executive Management
Executive Management Position: Chief Executive Officer Position: Chief Financial Officer Name: Eng. Maziad Alharbi Name: Mr. Mohammed Mubarak Al Faran Position: Chief Consumer Officer Position: Chief Strategy Officer Name: Eng. Amer Atoui Name: Eng. Nasser A. Al-Saadon Position: Chief Technology Off
Slide 8: Key Milestones
Key Milestones stc wins Sharjah Gulf VIP Customer Service Top 10 Business Award Award 2018 Won the "2017 Acquisition of Speedtest Award“ by Qualitynet – the Completes The first in Kuwait Ookla company stc and Virgin First to introduce leading ISP provider in nationwide 4G LTE to intr
Slide 9: Shareholders' Structure
Shareholders' Structure 52% 24% 24% Kuwaiti Governmental Saudi Telecom Public Shareholders Entities stc KSA, the leading regional The Kuwaiti government holds 24% Public Share holders consists of telecom operator, won the bid for of stc’ capital through different companies, portfolios, funds a
Slide 10: Kuwait's 2022 Macroeconomic Key Indicators
Kuwait’s 2022 Macroeconomic Key Indicators GDP Growth Rate Inflation Rate Unemployment Rate* 8.7% 3.2% 1.3% GDP Per Capita Monthly Lending Rate Money MKT Rate 11,800KWD 3.00% 3.62% Kuwait Credit Rating KIBOR (% p.a.) Moody’s S&P Fitch 1M 6M 1Y A1 A+ AA- 2.8750 3.6250 3.9375 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% 183.6 200 5.0% 162.7 4.5% 8.7% 5.0% 138.2 136.2 135.8 150 4.0% 114.6 120.7 3.5% 109.4 105.9 3.0%
Slide 12: Kuwait's Macroeconomic Environment…(Cont'd)
Kuwait’s Macroeconomic Environment…(Cont’d) Kuwait Population Population by Age Group Population (Mn.) Growth Rate (%) 6.0% 5.00 4.78 118,283 4.0% 4.67 4.80 4.62 3% 4.1% 861,252 2.0% 3.2% 3.6% 4.50 3.3% 4.46 4.60 4.41 2.7% 560,795 13% 19% 4.39 0.0% 2.0% 1.8% 4.40 4.24 -2.0% 4.09 4.20 -4.0% -2.2% 4.0
Slide 13: Population & Penetration
Population & Penetration Current Population Current Penetration 4.46 Million 184% Kuwait Population (Million) & Penetration Rate (%) 6.00 250% 205% 200% 5.00 194% 182% 187% 184% 200% 176% 172% 171% 155% 160% 4.00 152% 133% 150% 3.00 4.62 4.78 4.67 100% 4.24 4.41 4.50 4.39 4.46 2.00 3.82 3.97 4.09 3.
Slide 14: Our 2020-2022 Strategy “AHEAD”
Our 2020-2022 Strategy “AHEAD” …..aims to position stc at the center of Kuwait’s digital ambitions and is built upon 5 strategic pillars I II III IV V Anticipate Harness Excel Accelerate Devote Consumer Enterprise Digital Enabling performance Needs Opportunities Experience Capabilities Culture Val
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) 7.6 7.7 7.7 7.6 7.2 7.4 860 859 7.1 7.0 7.0 841 825 788 799 814 6.41 753 5.9 717 684 690 6
Slide 16: Financial Results
Financial Results The nine months ended 30 September 2022 Key Figures & Ratios 9M-2021 9M-2022 Change stc’s revenue increased by 16.6% during the nine months ended 30 Subscribers (Mn) 1.9 2.3 19.8% September 2022 to reach KD 249.4 mn, which represents the Revenue (KD Mn) 213.8 249.4 16.6% highest
Slide 17: Financial Results - Highlights Annual and YTD-22
Financial Results - Highlights Annual and YTD-22 Revenue (KD Million) EBITDA (KD Million) EBITDA (KD Million) EBITDA Margin (%) 294 296 30% 83.8 90 288 288 283 77.8 79.6 249 29% 71.1 73.4 80 214 28% 27% 29% 27% 60.6 70 26% 57.0 27% 60 26% 25% 27% 24% 50 25% 40 24% 30 23% 20 22% 10 21% 0 2017 2018 20
Slide 18: Financial Results - Highlights Quarterly
Financial Results - Highlights Quarterly Revenue (KD Million) EBITDA (KD Million) EBITDA (KD Million) EBITDA Margin (%) 95.6 35% 25 29% 30% 27% 82.5 27% 28% 26% 21% 76.8 76.9 30% 26% 72.2 72.6 74.2 74.4 25% 20 69.8 69.6 64.2 25% 21% 20% 15 15% 22.0 22.6 18.9 18.9 19.6 18.5 20.3 19.9 20.3 10 10% 15.5
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) 424 391 394 0.20 25 374 0.10 0.10 0.10 0.10 0.05 305 0.00 0.02 20 273 0.00 20 23 -0.10 15 -0.20 10 -0.30 10 9 5 -0.40 5 0 -0.50 0 2017 2018 2019 2020 2021 Sep-22
Slide 20: Cash Dividends
Cash Dividends Cash Dividends Per Share (Fils) Dividends Payout Ratio (%) 93% 60 60 50 67% 40 57% 30 40% 35% 10 13% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Stock Price vs. Dividends Yield Stock Price vs. Dividends Yield Stock Price (KD) Div. Yield (%) Stock Price (KD) Div. Yield
Slide 21: Stock Performance
Stock Performance Data as of 30 September 2022 Closing Price (KD) 0.554 PE (X) 22.8 Paid up Capital (KD Million) 99.9 PB (X) 2.4 Market Cap (KD Million) 553.3 Dividend Yield (%) 5.4% *Paid up capital is restated based on the distribution of 100% bonus shares in April 2022. Rebased Index Since stc’s
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 07 April 2022 2,500 The completion of 2,500 E-Portal Acquisition 14 February 2022 01 February 2022 Announcement of stc’s 2,000 AGM for the fiscal year 31 2,000 Announcement of December 2021 19 April 2022
Slide 23: Appendix
Appendix Balance Sheet (2019 – September 2022) Income Statement (FY 2019 – 9M 2022) Page | 23
Slide 24: Balance Sheet (2019– September 2022)
Balance Sheet (2019– September 2022) 2019 2020 2021 9M- 2022 Balance Sheet KD Mn KD Mn KD Mn KD Mn ASSETS Property and equipment 193.5 190.4 185.0 174.1 Goodwill and Intangible assets 26.2 25.0 27.2 38.3 Trade and other receivables - - 16.0 3.3 Total non-current assets 219.7 215.4 228.2 215.7 Invent
Slide 25: Income Statement (FY 2019– 9M 2022)
Income Statement (FY 2019– 9M 2022) Income Statement 2019 2020 2021 9M-2021 9M-2022 KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 293.7 283.2 296.3 213.8 249.4 Operating expenses (148.5) (147.4) (158.8) (115.2) (140.9) Staff costs (24.6) (24.2) (24.6) (18.4) (20.8) Expected credit losses on trade & other re
Slide 26: 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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