Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Q3 2024 Earnings Presentation
21 slides from Kuwait Telecommunications's earnings presentation, Oct 29, 2024
Slide 1: Investors Presentation Q3-2024
Investors Presentation Q3-2024 October 29th, 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 at 30 September 2024 15 2.3 Mn 66 2,128 100% Years in operations Subscribers Outlets Towers Coverage of Kuwait Populated Area STC.KW Listed In KD 542.3 Mn KD 0.543 Ticker %178 Boursa Kuwait Market Cap. Share Price Kuwait Market FTSE Penetration MSCI Investors presentation I Q3-202
Slide 4: stc aspires to LEAD: four 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 9M-2024
Operational Highlights 9M– 2024 B2C • Introduced innovative smart home solutions • Launched first exclusive plans designed for the youth in Kuwait called ‘youth all the way’ • Signed strategic partnerships with various companies to enrich ‘youth from stc’ B2B • Signed a strategic contract with the M
Slide 7: Awards Highlights
Awards Highlights 01 02 #1 Ideal ICT Telecom Employer Award-Kuwait For engineers and IT For the entry 5G at the professionals in Kuwait Middle East Technology according to Universum’s custom Excellence Awards research in comparison with 19 of the strongest brands in Kuwait 7
Slide 8: Financial Performance Highlights 9M-2024
Financial Performance Highlights 9M– 2024 Revenue EBITDA KD 261.8 Mn KD 63.7 Mn +0.8% YoY +1.2 % YoY Net Profit EPS KD 24.7 Mn 25.0 fils +1.4 % YoY +1.4% YoY CAPEX KD 24.3 Mn +8.7 % YoY Investors presentation I Q3-2024 8
Slide 9: Financial Performance Highlights: Revenues
Financial Performance Highlights Revenues Segmentation Revenue (KD Million) +0.8% 24% 24% Revenues increase is attributed to 264.0 261.8 262.0 3% 261.8 the increase in Consumer sector 259.8 revenues, which make up 73% of 260.0 49% total revenues, while Business 258.0 sector revenues accounted for 27
Slide 10: Financial Performance Highlights: EBITDA and Net Profit
Financial Performance Highlights EBITDA and EBITDA Margin Net Profit and Profit Margin EBITDA (KD Million) EBITDA Margin (%) 150% Net Profit (KD Million) Net Profit Margin (%) EBITDA Improvement driven by the +1.2% 140% ongoing optimization of our revenue 30.0% 35.0 mix, coupled with the realization
Slide 11: Financial Performance Highlights: Capex
Financial Performance Highlights Capex and Capex to Revenue Capex (KD Million) Capex To Revenue (%) 16.0% +8.7% will continue its 14.0% 29.0 investments in network 24.3 22.3 expansion, modernization and 12.0% 24.0 investments in digitization to be 10.0% 19.0 9.3% 8.0% 6.0% 8.6% 14.0 in line with str
Slide 12: Financial Performance Highlights: Assets, Liabilities, Equity
Financial Performance Highlights Total Assets (KD Million) +2.2% 460.0 440.0 432.0 441.7 420.0 400.0 380.0 360.0 340.0 320.0 has maintained a healthy 300.0 280.0 and strong balance sheet position 260.0 Sep-2023 Sep-2024 as well as key financial ratios with robust earnings growth and Total Liabilitie
Slide 13: Financial Performance Highlights: Total Debt
Financial Performance Highlights Total Debt (KD Million) Total Debt / Equity (X) -18.7% 30.0 has a strong solvency 0.16 -18.0% 28.0 position amongst the telecom 0.14 26.0 23.0 0.10 0.12 24.0 22.0 0.10 0.08 companies in the 20.0 18.7 0.08 Middle East. 0.06 18.0 0.04 16.0 14.0 0.02 12.0 0.00 Sep-2023
Slide 14: Financial Performance Highlights: ROE and ROA
Financial Performance Highlights Return on Equity Return on Assets 0.8% 18.0% 9.5% ROE and ROA have shown a 17.0% 2.3% 9.0% 16.0% 15.0% 13.8% 14.1% 8.5% positive trend YoY, indicating 14.0% 13.0% 8.0% 7.5% improved efficiency and 7.5% profitability, and reflecting stc‘s 12.0% 7.5% 11.0% effective ca
Slide 15: stc Share Performance
Sustainability stc Share Performance at stc small Highlights move big impact As at 30 September 2024 Number of Shares Paid Up Capital 998.7 Mn KD 99.9 Mn Share Price KD 0.543 630 P/E P/B 610 590 16.2x 2.4x 570 550 530 510 490 470 BVPS Dividend Yield 234 fils 6.5% Investors Investors presentation pre
Slide 16: Q&A
Q&A 16
Slide 17: Appendix
Appendix Statement of Financial Position (2021 – September 2024) Income Statement (2021 – 9M 2024) Kuwait’s Macroeconomic Environment 17
Slide 18: Statement of Financial Position (2021 – September 2024)
Statement of Financial Position (2021 – September 2024) 2021 2022 2023 Sept 2023 Sept 2024 Statement of Financial Position KD Mn KD Mn KD Mn KD Mn KD Mn Assets Property and equipment 185.0 171.2 161.9 160.5 155.7 Goodwill and intangible assets 27.2 42.1 40.7 43.2 44.3 Trade and other receivables 16.
Slide 19: Income Statement (2021 – 9M 2024)
Income Statement (2021 – 9M 2024) Income Statement 2021 2022 2023 9M 2023 9M 2024 KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 296.3 336.4 351.4 259.8 261.8 Operating expenses (158.8) (189.3) (194.6) (143.9) (147.9) Staff costs (24.6) (26.7) (27.2) (20.2) (19.6) Expected credit losses on trade & other rece
Slide 20: 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 4.86 180.0 162.7 161.8 160.4 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.
Slide 21: 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 Kuwait) — Q3 2024 Earnings Presentation on 6ix