Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P. (stc) — 6M 2022 Earnings Presentation
20 slides from Kuwait Telecommunications's earnings presentation, 2022
Slide 1: Investors Presentation – 6M 2022
Kuwait Telecommunications Company K.S.C.P. Investors Presentation – 6M 2022
Slide 2: Table of content
Table of content stc’s History in Brief 3 Key Milestones 4 Vision, Mission & Values 5 Shareholder’s Structure 6 Population & Penetration 7 Competitive Strengths 8 Our 2021 Strategy 9 Market Share 10 Financial Results 11 Cash Dividends 15 Stock Performance 16 Appendix 18 Page | 2
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: Key Milestones
Key Milestones stc wins Sharjah Gulf stc and Virgin VIP Customer Service Top 10 Business Award Mobile Middle East Award 2018 & Africa led consortium receive Won the "2017 Acquisition of MVNO license from Speedtest Award“ by Qualitynet – the CITRA Completes The first in Kuwait Ookla com
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: 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 7: Population & Penetration
Population & Penetration Current Population Current Penetration 4.7 Million 175% Kuwait Population (Million) & Penetration Rate (%) 6.0 240% 205% 200% 194% 5.0 182% 200% 176% 172% 171% 174% 175% 155% 160% 152% 4.0 160% 133% 3.0 120% 4.5 4.6 4.8 4.7 4.7 4.7 4.2 4.4 2.0 3.9 4.1 80% 3.6 3.7 3.8 3.4 3.5
Slide 8: Competitive Strengths
Competitive Strengths stc - the largest telecom company in the region - will continue to be a major shareholder and will continue to benefit from Relationship with being a member of stc group. Through this relationship, stc has access to technical support, industry best practice for stc group provis
Slide 9: Our 2021 Strategy "AHEAD"
Our 2021 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 Value gr
Slide 10: 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 7.2 7.4 7.4 841 860 859 7.1 7.0 7.0 814 825 788 799 6.41 753 717 5.9 684 690 5
Slide 11: Financial Results
Financial Results The six months ended 30 June 2022 Key Figures & Ratios 6M-2021 6M-2022 Change stc’s revenue increased by 10.3% during the six months Subscribers (Mn) 13.6% 1.9 2.2 ended 30 June 2022 to reach KD 153.8 mn compared to KD Revenue (KD Mn) 153.8 10.3% 139.4 139.4 mn recorded in 2021.
Slide 12: 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 29% 71.1 73.4 80 28% 29% 70 28% 27% 27% 60 27% 26% 154 26% 50 139 38.5 40.2 26% 40 25% 30 25% 20 24% 10 23% 0 2017 2018 2019 2020
Slide 13: Financial Results - Highlights Quarterly
Financial Results - Highlights Quarterly Revenue (KD Million) EBITDA (KD Million) EBITDA (KD Million) EBITDA Margin (%) 82.5 74.2 74.4 76.8 76.9 72.2 72.6 69.8 35% 25.0 69.6 29% 30% 64.2 27% 28% 30% 25% 27% 26% 26% 24% 20.0 25% 21% 20% 15.0 15% 22.0 22.6 18.9 18.9 19.6 18.5 20.3 19.9 10.0 17.0 15.5
Slide 14: 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 30 374 0.12 0.10 0.10 0.10 0.05 28 305 0.00 0.02 25 273 0.00 20 -0.10 20 15 -0.20 10 -0.30 9 10 -0.40 5 0 5 -0.50 0 2017 2018 2019 2020 2021 Jun
Slide 15: 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 (KD) Div. Yield (%) stc has been distributing a growing dividends since 10.0%
Slide 16: Stock Performance
Stock Performance Data as of 30 June 2022 Closing Price (KD) 0.645 PE (X) 42.8 Paid up Capital (KD Million) 99.6 PB (X) 2.9 Market Cap (KD Million) 644.2 Dividend Yield (%) 4.7% *Paid up capital is restated based on the distribution of 100% bonus shares in April 2022. Rebased Index Since stc’s Listi
Slide 17: Appendix
Appendix Balance Sheet (2019 – June 2022) Income Statement (FY 2019 – 6M 2022) Page | 17
Slide 18: Balance Sheet (2019 – June 2022)
Balance Sheet (2019– June 2022) 2019 2020 2021 H1- 2022 Balance Sheet KD Mn KD Mn KD Mn KD Mn ASSETS Property and equipment 193.5 190.4 185.0 181.0 Goodwill and Intangible assets 26.2 25.0 27.2 40.5 Other non-current assets - - - - Trade and other receivables - - 16.0 1.1 Total non-current assets 21
Slide 19: Income Statement (FY 2019 – 6M 2022)
Income Statement (FY 2019– 6M 2022) Income Statement 2019 2020 2021 6M-2021 6M-2022 KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 293.7 283.2 296.3 139.4 153.8 Operating expenses (148.5) (147.4) (158.8) (73.2) (83.1) Staff costs (24.6) (24.2) (24.6) (12.4) (13.0) Expected credit losses on trade & other rece
Slide 20: 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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