Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Q1 2024 Earnings Presentation
20 slides from Kuwait Telecommunications's earnings presentation, May 5, 2024
Slide 1: Investors Presentation Q1-2024
Investors Presentation Q1-2024 May 5th, 2024 Investor Relations and M&A Kuwait Telecommunications Company K.S.C.P.
Slide 2: Disclaimer
Disclaimer Kuwait Telecommunications Company (stc) has prepared this document to provide shareholders and investors with financial and management information about the Company. On the other hand, stc does not provide any kind of assurance on the content of this document and bears no liability for an
Slide 3: stc at a glance
stc at a glance As of 31st March 2024 15 2.3 Mn 66 2,085 100% Years in operations Subscribers Outlets Towers Coverage of Kuwait Populated Area STC.KW Listed In KD 585 Mn KD 0.586 Ticker %179 Boursa Kuwait Market Cap. Share Price Kuwait Market FTSE Penetration MSCI Investors presentation I Q1-2024 3
Slide 4: 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 5: stc aspires to LEAD the Kuwait telco and ICT market
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 6: stc Kuwait subsidiaries Operating in the ICT and B2B space
stc Kuwait subsidiaries Operating in the ICT and B2B space 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 under E-Portal stc Kuwait focus
Slide 7: Operational Performance Highlights
Operational Performance Highlights As of 31st March 2024 Technology • Enterprise achieved groundbreaking 10Gbps in first ever 6GHz IMT frequency spectrum trial • stc and Huawei Signed Strategic Cooperation MoU to Accelerate 5.5G Era • Launched Pioneering 5G RedCap FWA in the Middle East B2C • Introd
Slide 8: Sustainability at stc small move. Big impact
Sustainability at stc small move. Big impact ESG Framework: Caring for the Empowering Improving Promoting Digital Operating with Environment People Standards of Innovation Integrity Living & Technologies Objective: To Objective: To offer Objective: To make Objective: To Objective: To improve our pro
Slide 9: Financial Performance Highlights
Sustainability Financial Performance at stc small Highlights move big impact As of 31st March 2024 Revenue Net Profit KD 87.4 Mn KD 8.8 Mn +0.9% YoY +7 % YoY Share Price KD 0.586 EBITDA EPS 630 620 fils 9 610 KD 21.8 Mn 600 590 580 570 +1.1 % YoY + 7% YoY 560 550 540 2-Jan-24 9-Jan-24 16-Jan-24 23-J
Slide 10: Financial Performance Highlights
Financial Performance Highlights Revenue (KD Million) Revenues Segmentation 86.6 87.4 23% 26% Revenues mainly driven by the 2% 87.4 increase in consumer revenues due to the increase of device sales and other streams of revenues. 49% 3M-2023 3M-2024 Consumer Revenue - Point in Time Consumer Revenue -
Slide 11: Financial Performance Highlights
Financial Performance Highlights EBITDA and EBITDA Margin Net Profit and Profit Margin EBITDA improvement despite the increase in provisions and the continuity of the cost optimization EBITDA (KD Million) EBITDA Margin (%) Net Profit (KD Million) Profit Margin program. 27.0% 21.8 22 8.8 21.6 10.2% 9
Slide 12: Financial Performance Highlights
Financial Performance Highlights Capex and Capex to Sales Capex (KD Million) Capex to Sales 16.0% 13.5 14.0 will continue its 15.0% 15.5% investments in network 14.0% 11.4 12.0 expansion, modernization and 13.0% investments in digitization 12.0% 13.1% 10.0 (i.e. IT BSS transformation) to be in line
Slide 13: Financial Performance Highlights
Financial Performance Highlights Total Assets (KD Million) 467.1 435.7 The enhanced cash flow Mar-2023 Mar-2024 management and the optimization of working capital, Total Liabilities (KD Million) Shareholders Equity (KD Million) resulted in a notable increase in cash and cash equivalents. 249.3 219.7
Slide 14: Financial Performance Highlights
Financial Performance Highlights Total Debt (KD Million) Total Debt / Equity (X) 23.0 has a strong solvency position amongst the telecom companies in the 21.6 Middle East. 0.1 0.1 Maintains a relatively lower debt levels and stable debt to equity Mar-2023 Mar-2024 Mar-2023 Mar-2024 ratio. Investors
Slide 15: Financial Performance Highlights
Financial Performance Highlights Dividends Payout Ratio (%) Cash Dividends* 107% 35 In 2024, stc paid the highest dividends since inception of 35 fils per share for the FY-2023, 30 30 30 yielding to a dividend's payout ratio of 107%. 25 20 15 5 Dividend Yield (%) 6.2% 2016 2017 2018 2019 2020 2021 2
Slide 16: Q&A
Q&A 16
Slide 17: Appendix
Appendix Statement of Financial Position (2021 – March 2024) Income Statement (2021 – 3M 2024) 17
Slide 18: Statement of Financial Position (2021 – March 2024)
Statement of Financial Position (2021 – March 2024) 2021 2022 2023 March-2023 March-2024 Statement of Financial Position KD Mn KD Mn KD Mn KD Mn KD Mn Assets Property and equipment 185.0 171.2 161.9 167.3 160.8 Goodwill and intangible assets 27.2 42.1 40.7 45.8 48.4 Trade and other receivables 16.0
Slide 19: Income Statement (2021 – 3M 2024)
Income Statement (2021 – 3M 2024) Income Statement 2021 2022 2023 3M 2023 3M 2024 KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 296.3 336.4 351.4 86.6 87.4 Operating expenses (158.8) (189.3) (194.6) (47.4) (48.2) Staff costs (24.6) (26.7) (27.2) (6.8) (6.7) Expected credit losses on trade & other receivable
Slide 20: Shukran!
Shukran! Investor Relations Department: : Investor.relations@stc.com.kw ُ ًشكرا : +965 5000 1911 : www.stc.com.kw IR App stc Kuwait Kuwait Telecommunication Company (stc) stc_Kuwait @stc_Kuwait
Kuwait Telecommunications Company (stc) — Q1 2024 Earnings Presentation on 6ix