Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Q4 2024 Earnings Presentation
19 slides from Kuwait Telecommunications's earnings presentation, Feb 6, 2025
Slide 1: Investors Presentation Q4-2024
Investors Presentation Q4-2024 February 6th, 2025 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 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 4: Two pillars: Lift the core, Expand ICT, Accelerate innovation, Deploy 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 5: Operational Highlights FY-2024
Operational Highlights FY– 2024 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 6: Financial Performance Highlights FY-2024
Financial Performance Highlights FY– 2024 Revenue EBITDA KD 336.5 Mn KD 85.3 Mn +2.8% YoY +0.3% YoY Net Profit* CAPEX KD 31.4 Mn KD 39.2 Mn -4.0% YoY +39.6% YoY *FY2024 Net Profit includes non-recurring expenses related to the early retirement plan program of around KD 1.9 mn. The Normalized Net Pro
Slide 7: Revenues Segmentation
Financial Performance Highlights Revenues Segmentation Revenue (KD Million) 21% 25% +2.8% ‘s Revenue is comprised of 4% 336.5 48.0 the Consumer Sector which makes 336.5 45.0 up to 76% of the company’s total 42.0 39.0 * 327.4 36.0 revenue, and the Enterprise Sector 33.0 51% 30.0 27.0 revenues which a
Slide 8: EBITDA and Net Profit
Financial Performance Highlights 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 (%) 11 5.0 12 0% realization of syn
Slide 9: Capex and Capex to Revenue
Financial Performance Highlights Capex and Capex to Revenue Capex (KD Million) Capex To Revenue (%) +39.6% 50 .0 ‘s Capex rise is primarily 14 .5% 39.2 45 .0 due investments in network coverage, new sites expansion 40 .0 12 .5 % and the preparations for the 5G 35 .0 28.1 30 .0 11.6% Advanced “new sp
Slide 10: Total Assets, Liabilities and Equity
Financial Performance Highlights Total Assets (KD Million) +3.3% 462.2 447.7 460 .0 450 .0 440 .0 430 .0 Maintaining a strong balance 420 .0 410 .0 2023 2024 sheet and key financial ratios, driven by robust earnings growth and disciplined capital Total Liabilities (KD Million) Shareholders Equity (K
Slide 11: Total Debt and Debt/Equity
Financial Performance Highlights Total Debt (KD Million) Total Debt / Equity (X) -25.0% The KD 5.8 million decline in total -23.9% 24.0 23.0 Debt in FY-2024 vs. FY-2023 0.09 underscores stc Kuwait’s strong 22.0 0.10 0.07 20.0 18.0 17.3 0.08 solvency position among leading telecom companies in the Mi
Slide 12: Share Performance Highlights
stc Investors P/E 16.3x Investors 998.7 Mn Number of Shares presentation BVPS Sustainability presentation 240 fils P/B 2.3x I Q4-2024 I Q1-2024 Share Performance Paid Up Capital KD 99.9 Mn at stc small 610 630 550 470 490 510 530 570 590 2-Jan-24 12-Jan-24 22-Jan-24 1-Feb-24 11-Feb-24 21-Feb-24 2-Ma
Slide 13: Dividends and Payout Ratio
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 14: Q&A
Q&A 14
Slide 15: Appendix
Appendix Statement of Financial Position (2021 –2024) Income Statement (2021 –2024) Kuwait’s Macroeconomic Environment 15
Slide 16: 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 17: Income Statement (2021-2024)
Income Statement (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) (11.0)
Slide 18: 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 19: Shukran! Download our IR App
Shukran! ُ ًشكرا Ticker Boursa Kuwait: STC Bloomberg: STCKK Yahoo Finance: STC.KW Reuters: STC.KW Download our IR App 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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