Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P. (stc) — FY2023 Earnings Presentation
29 slides from Kuwait Telecommunications's earnings presentation, 2024
Slide 1: Investors Presentation – FY 2023
Kuwait Telecommunications Company K.S.C.P. Investors Presentation – FY 2023
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: Table of content
Table of content stc’s History in Brief 4 stc Kuwait and its subsidiaries 5 Vision, Mission & Values 6 Board of Directors 7 Executive Management 8 Key Milestones 9 Shareholder’s Structure 10 Kuwait’s 2023 Macroeconomic Key Indicators 11 Kuwait’s Macroeconomic Environment 12 Population & Penetration
Slide 4: 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 5: 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 6: 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 7: 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. Moaee
Slide 8: Executive Management
Executive Management Position: Chief Executive Officer Position: Chief Human Resources Officer Name: Eng. Maziad Alharbi Name: Eng. Ahmad Al Hammad Position: Chief Financial Officer Position: Chief Strategy Officer Name: Mr. Khalid Al Mayouf Name: Eng. Anowd Muthaib Position: Chief Consumer Officer
Slide 9: Key Milestones
Key Milestones VIP Customer stc wins Sharjah Service Award Gulf Top 10 Business Award Won the "2017 2018 Speedtest Completes Award“ by Ookla Acquisition of The first in First to introduce nationwide 4G company Qualitynet – the stc and Samsung ink new Kuwait to Apple iPhone LTE Covera
Slide 10: Shareholders' Structure
Shareholders' Structure 52% 23% 25% Saudi Telecom Kuwaiti Governmental Entities Floating Shares stc KSA, the leading regional telecom The Kuwaiti government holds 23% Floating shares consists of operator, won the bid for third mobile of stc’ capital through different shareholding companies, li
Slide 11: Kuwait’s Macroeconomic Key Indicators
Kuwait’s Macroeconomic Key Indicators GDP Growth Rate Inflation Rate* Unemployment Rate 3.6% 3.1% 2.2% GDP Per Capita* Monthly Lending Rate Money MKT Rate 9,916 KWD 4.25% 4.31% Kuwait Credit Rating KIBOR (% p.a.) Moody’s S&P Fitch 1M 6M 1Y A1 A+ AA- 4.0625 4.5000 4.7500 Source: CBK, IMF & Moody’s as
Slide 12: 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% 184.6 200 4.8% 162.7 159.7 4.2% 138.2 8.2% 5.0% 136.2 136.8 150 3.6% 114.6 120.7 109.4 105.9 3.0
Slide 13: Kuwait’s Macroeconomic Environment…(Cont’d)
Kuwait’s Macroeconomic Environment…(Cont’d) Kuwait Population Population by Age Group Population (Mn.) Growth Rate (%) 10.0% 8.1% 4.86 5.00 3% 8.0% 4.78 4.74 4.67 4.80 12% 18% 6.0% 4.1% 4.62 3.2% 3.6% 3.3% 4.50 2.5% 4.60 4.0% 4.41 4.39 2.0% 4.24 4.40 0.0% 4.09 2.0% 2.7% -2.2% 4.20 -2.0% 4.00 -4.0% -
Slide 14: Population & Penetration
Population & Penetration Current Population Current Penetration 4.86 Million 177% Kuwait Population (Million) & Penetration Rate (%) 6.0 250% 205% 200% 5.0 194% 191% 182% 183% 200% 176% 172% 171% 177% 155% 160% 4.0 152% 133% 150% 3.0 4.62 4.78 4.67 4.74 4.90 100% 4.24 4.41 4.50 4.39 2.0 3.89 4.09 3.
Slide 15: 2023-2025 Strategy “LEAD”
2023-2025 Strategy “LEAD” stc’s Lead Strategy aspires to LEAD the Kuwait telco and ICT market by offering innovative services, growing priority segments and deploying an efficient and digital operating model stc KWT LEAD L E A D Strategy Lift the core by Expand ICT business in Accelerate innovation
Slide 16: 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 7.8 7.4 958 7.2 7.1 7.0 7.0 915 841 860 859 6.41 799 814 825 5.9 788 753 6
Slide 17: Financial Results
Financial Results Key Figures & Ratios FY-2022 FY-2023 Change The financial year ended 31 December 2023 Subscribers (Mn) 2.3 2.3 0.5% stc’s revenue increased by 4.5% during the full year ended 31 December 2023 to reach KD 351.4 mn, which represents the highest Revenue (KD Mn) 336.4 351.4 4.5% reve
Slide 18: Financial Results - Highlights
Financial Results - Highlights Annual and YTD-23 Revenue (KD Million) EBITDA (KD Million) EBITDA (KD Million) EBITDA Margin (%) 351.4 30% 90 336.4 29% 287.7 287.9 293.7 296.3 29% 283.2 85 28% 27% 27% 85.1 83.8 27% 26% 82.0 80 26% 25% 79.6 77.8 24% 75 25% 24% 24% 73.4 70 71.1 23% 65 22% 21% 60 2017 2
Slide 19: Financial Results - Highlights: Operating Segments Revenue
Financial Results - Highlights Operating Segments Revenue 2022 vs. 2023 Revenue (KD Million) +4.5% 351.4 336.4 2022 2023 Consumer Revenues – Point in time Consumer Revenues – Over time Enterprise & Other Revenues – Point in time Enterprise & Other Revenues– Over time 2022 vs 2023 (KD ’000) 2022 vs 2
Slide 20: Financial Results - Highlights Quarterly
Financial Results - Highlights Quarterly Revenue (KD Million) EBITDA (KD Million) EBITDA (KD Million) EBITDA Margin (%) 28% 95.6 30% 27% 27% 26% 26% 25 91.5 25% 25% 25% 24% 87.0 86.6 88.0 85.3 21% 23% 24% 82.5 25% 76.8 76.9 22.6 22.1 20 74.4 69.8 69.6 20.3 20.8 19.6 19.9 21.6 20% 18.9 18.5 21.4 20.3
Slide 21: Financial Results - Highlights
Financial Results - Highlights Total Debt / Equity (KD Million) Total Assets (KD Million) Total Debt (KD Million) Debt to Equity Ratio (x) 447.7 424.4 0.20 25 391.1 393.8 0.09 0.10 0.09 374.2 0.06 0.05 0.10 0.02 0.00 20 305.4 273.2 0.00 -0.10 15 -0.20 23 23 20 10 -0.30 9 10 5 -0.40 0 5 -0.50 0 2017
Slide 22: Cash Dividends
Cash Dividends Cash Dividends Per Share (Fils) Adjusted Cash Dividends Per Share (Fils) Dividends Payout Ratio (%) 35 60 60 30 30 30 50 25 107% 93% 91% 40 20 35 67% 30 30 15 57% 35% 40% 10 5 13% 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020
Slide 23: Stock Performance
Stock Performance Data as of 31 December 2023 Closing Price (KD) 0.563 PE (X) 17.2 Paid up Capital (KD Million) 99.9 PB (X) 2.3 Market Cap (KD Million) 562.3 Dividend Yield (%) 6.2 % Rebased Index Since stc’s Listing Date 14 Dec 2014 – Stock Performance vs. KSE and Telecom weighted Indices STC's Sto
Slide 24: Stock Performance – Key Events Driving stc’s Stock Price
Stock Performance – Key Events Driving stc’s Stock Price Traded Shares Closing Price Shares Fils 10 January 2023 Announcement of 16,000,000 stc’s addition to the 08 February 2023 900 BK main 50 Announcement of stc’s FY2022 14,000,000 Financial Results & Dividends 17 July 2023 04 April 2023 12,000,00
Slide 25: Appendix
Appendix Balance Sheet (2020 –2023) Income Statement (2020 –2023) Page | 25
Slide 26: Balance Sheet (2020–2023)
Balance Sheet (2020–2023) 2020 2021 2022 2023 Balance Sheet KD Mn KD Mn KD Mn KD Mn Assets Property and equipment 190.4 185.0 171.2 161.9 Goodwill and intangible assets 25.0 27.2 42.1 40.7 Trade and other receivables - 16.0 5.1 0.4 Contract Assets - - 16.3 18.7 Total non-current assets 215.4 228.2 2
Slide 27: Income Statement (2020–2023)
Income Statement (2020–2023) Income Statement 2020 2021 2022 2023 KD Mn KD Mn KD Mn KD Mn Revenue 283.2 296.3 336.4 351.4 Operating expenses (147.4) (158.8) (189.3) (194.6) Staff costs (24.2) (24.6) (26.7) (27.2) Expected credit losses on trade & other receivables and contract assets (15.0) (7.8) (1
Slide 28: Digital Annual Reports
Digital Annual Reports 2021 2022 Page|| 28 Page 28
Slide 29: 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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