Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P. (stc) — 9M 2020 Earnings Presentation
20 slides from Kuwait Telecommunications's earnings presentation, 2020
Slide 1: Investors Presentation
Investors Presentation Kuwait Telecomunications Company K.S.C.P Kuwait Telecommunications Company K.S.C.P. 9M- 2020
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 2020 Strategy 9 Market Share 10 Financial Results 11 Cash Dividends 15 Stock Performance 16 Appendix 18 Appendix 19 Page | 2
Slide 3: stc's History in Brief
stc’s History in Brief Kuwait Telecommunications Company (stc) is a Kuwaiti shareholding organization fused as per Amiri Decree No. 187 on 22 July, 2008, to work and deal with the third GSM versatile system in Kuwait according to Law No. 2 of 2007. Appropriately, stc propelled its tasks in December
Slide 4: Key Milestones
Key Milestones Best Network Development Award at 5G MENA stc Group was Launches ranked the 1st in the stc launches Elite Partnership with Real stc Reap Three MENA region, by commercially Madrid Best Telecom Co. by Accolades at ME Call Expands retail Program for loyal, VIP and Forbe’s
Slide 5: Vision, Mission & Values
Vision, Mission & Values Values Vision A world-class digital leader providing innovative services and platforms to our customers and enable the digital transformation in Kuwait. stc is keen to present its customers with numerous telecommunications opportunities with the goal of boosting existing rel
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 Public Share holders consists telecom operator, won the bid for 24% of stc’ capital through of companies, portfolios, third mobile lice
Slide 7: Population & Penetration
Population & Penetration Current Population Current Penetration 4.8 Million 158% Kuwait Population (Million) & Penetration Rate (%) 6.0 250% 205% 200% 194% 5.0 182% 176% 172% 171% 200% 155% 152% 158% 4.0 133% 150% 3.0 57% 93% 4.6 4.8 4.8 100% 2.0 4.2 4.4 4.5 3.8 3.9 4.1 3.4 3.5 3.6 3.7 50% 1.0 0.0 0
Slide 8: Competitive Strengths
Competitive Strengths Relation-ship stc (the largest telecom company in the region) will continue to be a major shareholder and will continue to with benefit from being a member of stc group. Through this relationship, stc has access to technical support, industry best practice for provision of tele
Slide 9: Our 2020 Strategy "AHEAD"
Our 2020 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) 841 860 859 7.6 7.7 7.7 788 799 7.2 7.1 7.4 753 6.9 690 717 6.41 684 5.9 627 600 5.2 4.5 2
Slide 11: Financial Results Nine Months Period Ended September 2020
Financial Results Nine Months Period Ended 30 September 2020 stc’s revenue declined by 3.1% during the 9M-20 to reach KD 209.0 mn compared to KD 215.6 mn Key Figures & Ratios 9M-2019 9M-2020 Change recorded during the same period in 2019. Subscribers (Mn) EBITDA declined by 3.7% to reach KD 57.9
Slide 12: Financial Results - Highlights Annual and YTD-20
Financial Results - Highlights Annual and YTD-20 Revenue (KD Million) EBITDA (KD Million) EBITDA (KD Million) EBITDA Margin (%) 288 288 294 277 279 47% 47% 50% 140 216 209 120 40% 29% 28% 28% 100 25% 27% 30% 80 131 131.9 60 20% 77.8 83.8 40 71.1 60.1 10% 57.9 20 0% 0 2015 2016 2017 2018 2019 9M-19 9
Slide 13: Financial Results - Highlights Quarterly
Financial Results - Highlights Quarterly Revenue (KD Million) EBITDA (KD Million) 78.1 EBITDA (KD Million) EBITDA Margin (%) 76.1 72.9 72.2 72.6 66.6 64.2 35% 30% 30% 25 28% 28% 29% 27% 30% 24% 20 25% 20% 15 15% 23.7 22.0 19.8 21.5 10 18.8 17.0 18.9 10% 5 5% 0% 0 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20
Slide 14: Financial Results - Highlights
Financial Results - Highlights Total Assets (KD Million) Total Debt / Equity (KD Million) 412 Total Debt (KD Million) Debt to Equity Ratio (x) 391 0.8 0.9 80 305 273 0.7 70 263 267 0.4 60 0.5 50 0.3 0.1 0.1 0.1 0.0 40 0.1 72 30 -0.1 47 20 -0.3 20 10 0 11 -0.5 9 0 2015 2016 2017 2018 2019 Sep-20 2015
Slide 15: Cash Dividends
Cash Dividends Cash Dividends Per Share (Fils) Dividends Payout Ratio (%) 57% 50 40 40% 35% 30 10 13% 2016 2017 2018 2019 2016 2017 2018 2019 Stock Price vs. Dividends Yield stc has been distributing a growing Stock Price (KD) Div. Yield (%) dividends since 2016 reaching 50 fils in 10.00% 0.853 0.
Slide 16: Stock Performance
Stock Performance Closing Price (KD) 0.840 PE (X) 15.27 Paid up Capital (KD Million) 49.9 PB (X) 1.93 Market Cap (KD Million) 419.5 Dividend Yield (%) 6.0% Data as of 30 September 2020 Rebased Index Since stc’s Listing Date 14 Dec 2014 – Stock Performance vs. KSE and Telecom weighted Indices STC's S
Slide 17: Appendix
Appendix Balance Sheet (2017 – September 2020) Income Statement (2017 – 9M 2020) Page | 17
Slide 18: Balance Sheet (2017– September 2020)
Balance Sheet (2017– September 2020) Balance Sheet 2017 2018 2019 September 2020 KD Mn KD Mn KD Mn KD Mn ASSETS Property and equipment 145.0 150.5 193.5 192.0 Goodwill and Intangible assets - - 26.2 25.3 Total non-current assets 145.0 150.5 219.7 217.3 Inventories 12.9 6.9 9.1 9.1 Prepayments and ot
Slide 19: Income Statement (2017– 9M 2020)
Income Statement (2017– 9M 2020) Income Statement 2017 2018 2019 9M-2019 9M-2020 KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 287.7 287.9 293.7 215.6 209.0 Operating expenses (145.5) (139.3) (148.5) (110.2) (107.2) Staff costs (20.4) (21.7) (24.6) (17.7) (17.6) Expected credit losses on trade & other recei
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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