Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Q2 2024 Earnings Presentation
20 slides from Kuwait Telecommunications's earnings presentation, Jul 23, 2024
Slide 1: Investors Presentation Q2-2024
Investors Presentation Q2-2024 July 23rd 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 30th June 2024 15 2.3 Mn 66 2,092 100% Years in operations Subscribers Outlets Towers Coverage of Kuwait Populated Area STC.KW Listed In KD 530 Mn KD 0.531 Ticker %178 Boursa Kuwait Market Cap. Share Price Kuwait Market FTSE Penetration MSCI Investors presentation I Q2-2024 3
Slide 4: LEAD strategic pillars
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: 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 6: Operational Highlights First Half 2024
Operational Highlights First Half – 2024 • Awarded numerous ICT projects through our subsidiaries in both the public and private sectors B2B • Introduced next-generation Multi-Tenant SIEM Service for SMEs • Introduced innovative smart home solutions in partnership with HomeWagon • Launched first exc
Slide 7: Financial Performance Highlights First Half 2024
Financial Performance Highlights First Half – 2024 Revenue EBITDA KD 175.6 Mn KD 43.1 Mn +0.6% YoY +2.2 % YoY Net Profit EPS KD 16.9 Mn 16.9 fils +5 % YoY + 5% YoY CAPEX KD 19.6 Mn +16 % YoY Investors presentation I Q2-2024 7
Slide 8: Financial Performance Highlights: Revenues Segmentation
Financial Performance Highlights Revenues Segmentation Revenue (KD Million) 177.0 24% 24% 176.0 175.6 Revenues attributed to the 175.0 174.6 3% 175.6 increase in both the Consumer 174.0 sector revenues, which constitute 173.0 49% 73% of total revenues. Meanwhile, Business sector revenues 172.0 accou
Slide 9: Financial Performance Highlights: EBITDA and Net Profit
Financial Performance Highlights EBITDA and EBITDA Margin Net Profit and Profit Margin EBITDA improvement due to the Net Profit (KD Million) Net Profit Margin (%) EBITDA (KD Million) EBITDA Margin (%) continuity of the cost and revenue 45.0 120% 43.1 mix optimization programs 44.0 20.0 42.1 115% 43.
Slide 10: Financial Performance Highlights: Capex
Financial Performance Highlights Capex and Capex to Revenue Capex (KD Million) Capex To Revenue (%) will continue its 19.6 investments in network 22.0 14.5% 20.0 12.5% 16.9 18.0 expansion, modernization and 16.0 investments in digitization to be in line with strategic pillars. 10.5% 14.0 11.2% 12.0
Slide 11: Financial Performance Highlights: Assets, Liabilities, Equity
Financial Performance Highlights Total Assets (KD Million) 440.0 435.0 435.9 430.0 425.4 425.0 420.0 415.0 410.0 The enhanced cash flow 405.0 400.0 Jun-2023 Jun-2024 management and the optimization of working capital, resulted in a Total Liabilities (KD Million) Shareholders Equity (KD Million) nota
Slide 12: Financial Performance Highlights: Debt
Financial Performance Highlights Total Debt (KD Million) Total Debt / Equity (X) 23.0 0.10 has a strong solvency 24.0 0.10 0.09 22.0 20.1 0.08 position amongst the telecom 20.0 companies in the Middle East. 0.06 18.0 0.04 16.0 0.02 14.0 12.0 0.00 Maintains a relatively lower debt Jun-2023 Jun-2024 J
Slide 13: Financial Performance Highlights: ROE and ROA
Financial Performance Highlights Return on Equity Return on Assets 18.0% 17.0% 9.0% 14.9% ROE and ROA have shown a 16.0% 15.0% 14.1% 8.5% 14.0% positive trend YoY, indicating 7.7% improved efficiency and 13.0% 8.0% 12.0% 7.5% 11.0% 7.5% profitability, and reflecting stc‘s effective capital managemen
Slide 14: Sustainability Highlights and stc Share Performance
Sustainability stc Share Performance at stc small Highlights move big impact As of 30st June 2024 Number of Shares Paid Up Capital 998.7 Mn KD 99.9 Mn Share Price KD 0.531 630 P/E P/B 610 590 2.4x 570 15.9x 550 530 510 490 470 BVPS Dividend Yield 226 fils 6.6% Investors Investors presentation presen
Slide 15: Q&A
Q&A 15
Slide 16: Appendix
Appendix Statement of Financial Position (2021 – June 2024) Income Statement (2021 – 6M 2024) Kuwait’s Macroeconomic Environment 16
Slide 17: Statement of Financial Position (2021 – June 2024)
Statement of Financial Position (2021 – June 2024) 2021 2022 2023 June 2023 June 2024 Statement of Financial Position KD Mn KD Mn KD Mn KD Mn KD Mn Assets Property and equipment 185.0 171.2 161.9 164.6 160.1 Goodwill and intangible assets 27.2 42.1 40.7 43.6 45.9 Trade and other receivables 16.0 5.1
Slide 18: Income Statement (2021 – 6M 2024)
Income Statement (2021 – 6M 2024) Income Statement 2021 2022 2023 6M 2023 6M 2024 KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 296.3 336.4 351.4 174.6 175.6 Operating expenses (158.8) (189.3) (194.6) (97.2) (98.2) Staff costs (24.6) (26.7) (27.2) (13.5) (13.5) Expected credit losses on trade & other receiv
Slide 19: Kuwait's Macroeconomic Environment
Kuwait’s Macroeconomic Environment GDP current prices (USD Bn.) Real GDP growth (Annual % change) Population (Mn.) Growth Rate (%) 200.0 182.8 8.0% 5.20 4.92 130.0% 4.78 4.86 180.0 162.7 161.8 4.67 4.74 4.62 110.0% 1.2 6.0 % 138.2 138.7 141.8 4.41 4.50 4.39 160.0 4.70 6.1% 90.0 % 120.7 4.24 4.0% 114
Slide 20: Download our IR App
Shukran! ُ ًشكرا 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
Kuwait Telecommunications Company (stc) — Q2 2024 Earnings Presentation on 6ix