Kuwait Telecommunications Company reports revenue of $464 million for the first half

KUWAIT CITY: Kuwait Telecommunications Corporation (stc)a world-class digital leader providing innovative services and platforms to customers, enabling digital transformation in Kuwait, announced its financial results for the six-month period ended June 30, 2021.

On this occasion, Dr. Mahmoud Ahmad Abdulrahman, President of the stc, said: “With the continued negative repercussions emerging from the onset of the COVID-19 pandemic since the first quarter of 2020, and still affecting most vital sectors in general, stc spared no effort to update its strategy according to the current situation. Update stcThe strategy has helped improve the customer experience by continuing to deliver a variety of the best and latest comprehensive digital services and products to the consumer and business sectors as part of an initiative to transition to the next phase of implementation of the digital transformation strategy that the company has adopted since 2019. Considering the persistent challenges and risks faced by the various sectors due to the current crisis, in addition to the government’s efforts to gradually lift the restrictions imposed on the governmental and private sectors, stc wishes to provide a wide range of services that will facilitate business recovery and the daily activities of individuals and businesses. Driven by the rapid digital transformation that has become an absolute necessity to continue the daily activities of the company, stc develops periodic precautionary plans that allow the company to continuously carry out its operations during the various periods of closure in order to ensure the delivery of services and customer satisfaction”.

Corporate social responsibility

In terms of stcDr. Abdurrahman pointed out that the past year has been marked by a number of social activities, including honoring the members of the Al Tarahom volunteer team, in recognition of their collaboration, vital role and ongoing team initiatives that have brought the two companies together on various occasions over the past few years.

On the other hand, stc renewed its invitations to aspiring Kuwaiti executives to join its experienced team in the field of integrated communications. These invitations aim to recruit Kuwaiti skills from different backgrounds and scientific experiences.

As for the sports field, stc – the official sponsor of the Premier League championship and all activities of the Kuwait Football Association (KFA) – celebrated the final game of the Premier League tournament with a ceremony in honor of its champion.

Regarding the financial results of the Company, engineer Maziad Alharbi – general manager of stc, commented: “Due to the global fundamental changes imposed by the COVID-19 pandemic, represented by the growing demand for traditional communication and digital services, stc was able to achieve these results by leveraging the capabilities and efficiency of the 5G network. Furthermore, stc seized potential opportunities through the dedication of its employees and their eagerness to update and implement the company’s digital transformation strategy. Without speaking about stcthe concern to provide integrated technical solutions that serve the directions of the Kuwaiti government regarding social distancing of individuals and businesses as well as its implementation of the gradual return to normal working life and daily activities in the country. Consequently, the growing demand for fixed and mobile broadband services has boosted the company’s profitability through stcoffers the best products, services and offers that would help businesses and organizations enable online institutional and educational interaction with the highest possible quality and efficiency. Thus, the growing demand for stcThe services support our ambition to increase revenue and cash flow for the business in the near term.

Alharbi added:stcEBITDA reached KD 38.5 million in the first six months of 2021 compared to KD 35.9 million in the same period of 2020. While EBITDA margin reached 27.6% in the first six months of 2021, compared to 26.3% the previous year. As a result, stc recorded an increase in net profit of 3.8% to 16.5 million KD (earnings per share of 33 fils) with a profit margin of 11.8% against 15.9 million KD (earnings per share of 32 fils) with a profit margin of 11.7% in 2020.

Considering the company’s financial position in the first half of 2021, total assets reached KD 372.7 million, while total equity reached KD 208.7 million, with a book value of 418 Kuwaiti fils per share. Furthermore, stc enjoys a solid financial solvency position, considered one of the best compared to telecommunications companies in the Middle East. Furthermore, stcThe customer base stood at 1.9 million customers at the end of June 2021”.

Alharbi noted: “stcThe financial results of for the first half of 2021 demonstrate its ability to be competitive and to strengthen its position as the second telecommunications operator in the Kuwaiti telecommunications market with a market share of approx. 35%. With the ongoing impacts and challenges we are facing due to the COVID-19 crisis, the Company’s increased financial results are attributed to lower stcof bad debts and its implementation of the cost optimization program in order to obtain the best results and improve profitability by adopting a balanced and efficient financial policy in relation to operating and investment expenses”.

It is worth mentioning that the first half of 2021 witnessed a number of operational achievements, thanks to which stc celebrated the successful launch of 5G Stand Alone (5G SA) supported by 5G embedded technology. This step is considered to be the newest and most advanced comprehensive integrated network compatible with 5G integrated standards (3GPP.).

Furthermore, in addition to the significant growth in its financial and operational performance during the first half of 2021, stc demonstrated its ability to overcome risks and deal with potential challenges. The Company has achieved this while maintaining its operations and keeping its doors open to better serve its loyal customers in such circumstances. The actions taken by stc have positively impacted customers due to increased demand for the latest offers and solutions released across the Company’s various outlets and online platforms. Therefore, in order to maintain its operations and continue to provide uninterrupted services, stc continued its comprehensive business continuity plan. Earlier this year, the company was certified with the latest version of ISO Business Continuity Certification (ISO 22301:2019) after completing a rigorous audit process by Top Certifier. The certification is testament to the diligent approach taken by stc to implement protocols and guidelines in all aspects related to business during the pandemic.

The year was marked by an extraordinary event for stc, whereby the Company received approval from the Communication and Information Technology Regulatory Authority (CITRA) to launch the first Mobile Virtual Network Operator (MNVO) license to launch Virgin Mobile Kuwait in partnership with Virgin Mobile Middle East & Africa . Virgin Mobile Kuwait will operate using stcof the network, with stc acting as a host facility-based provider “FBP” with Virgin Mobile Kuwait, offering prepaid packages to users and making the first virtual telecommunications service in the country.

Besides, solutions by stc, the company’s specialist business solutions arm, has provided a wide range of modern solutions and services to provide an integrated network infrastructure that will serve the drive-through vaccination center on the South Island of Jaber Bridge. The initiative was conducted in accordance with the highest international standards. The company also announced the addition of Google products, in partnership with iSolutions, to its existing suite of offerings to help B2B customers transition into the world of digital solutions. This is in addition to the launch of its ultimate cybersecurity and protection solution, “Shield”. The pioneering service revealed by the Security Operations Center (SOC) which belongs to solutions by stc – stc’s branch specializing in the provision of services to companies protects businesses online by identifying the risks of potential data breaches, providing 360-degree protection, and assessing critical assets to enable businesses to thrive digitally in worry-free environments.”

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Sean B. Jackson