| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
2,527
|
2,397
|
5.42
|
2,084
|
21.26
|
| Gross profit (loss) |
7,034
|
7,076
|
-
|
6,955
|
1.14
|
| Operational profit (loss) |
2,605
|
2,856
|
-
|
1,829
|
42.43
|
| Earning or loss per share, Riyals |
1.26
|
1.2
|
-
|
-
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The net profit for the 1st quarter increased by SR 131m compared to the comparable quarter in the previous year mainly due to the SR 334m increase in Other income and expenses during the quarter compared to the comparable period last year, while: 1. Gross profit for the 1st quarter decreased by SR 42m compared to the comparable quarter in the previous year as a result to the SR 399m decrease in revenues accompanied with SR 357m decrease in cost of revenues during the quarter compared to the comparable quarter in the previous year. 2. Operating profit for the 1st quarter decreased by SR 252m compared to the comparable quarter in the previous year as a result to the SR 210m increase in operating expenses during the quarter compared to the comparable quarter in the previous year |
| Reasons of increase (decrease) for quarter compared with previous quarter | The Net Profit for the 1st quarter increased by SR 443m compared to the immediate prior quarter mainly to the following: 1. The SR 79m increase in gross profit during the 1st quarter compared to the immediate prior quarter (despite the SR 181m decrease in revenues during the quarter) as a result to the SR 260m decrease in cost of revenues during the quarter compared to the immediate prior quarter. 2. The SR 776m increase in operating profit compared to the immediate prior quarter as a result to the SR 697m decrease in operating expenses during the quarter compared to the immediate prior quarter. 3. The SR 355m decrease in Other income and expenses during the 1st quarter compared to the immediate prior quarter |
| Reclassifications in quarterly financial results | The interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 (the Interim Financial Report) adopted in Saudi Arabia and other standards and publications approved by the Saudi Organization for Certified Public Accountants. These interim condensed consolidated financial statements are the Group first issued in accordance with International Financial Reporting Standards (IFRS) and IFRS 1 (apply the International Financial Reporting Standards for the first time). The interim condensed consolidated financial statements have been represented, reclassified and categorized in accordance with the accounting policies applied in the presentation, classification and classification of the interim condensed consolidated financial statements for the current period which have been prepared in accordance with the International Financial Reporting Standards adopted in Saudi Arabia, Other accredited by the Saudi Organization for Certified Public Accountants. |
| Other notes | Revenue from services for the 1st quarter amounted to SR 12,830 million compared to SR 13,229 million for the corresponding period last year, a decrease of 3 %. Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) for the 1st quarter amounted to SR 4,607 million compared to SR 4,818 million for the corresponding quarter last year, a decrease of 4%. Earnings Per share for the 1st quarter reached SR 1.26 compared to SR 1.20 for the comparable quarter last year Total shareholder equity (excluding non-controlling interest) as 31st March 2017, reached SR 60,564m compared to SR 60,269m as of 1st January 2016 an increase of 0.5%, and compared to SR 59,941m as of 31st December 2016 an increase of 1.03% Total comprehensive income for the 1st quarter of 2017 reached SR 2,515m compared to SR 2,529m for the corresponding period last year, a decrease of 0.5 % Commenting on the results, STC Group CEO, Dr. Khaled H. Biyari, stated: The financial results achieved for the 1st quarter of 2017 reflects the efforts being made to constantly evolve, improve and develop the company strategy and operations and achieve the best returns for the shareholders. Despite the various difficulties facing the sector, company sponsored programs contributed to improve operational efficiency and cost control leading to improved income and margins. Therefore, net income for the 1st quarter increased 5.4% compared to the comparable period last year. Also, net income for the quarter increased 21.3% compared to the immediate prior quarter as the company managed to reduce the cost of revenues by 4.3% and reduce operating expenses by 13.6% compared to the previous quarter. Dr. Biyari, added STC continues to invest in digital platforms to provide unique and innovative services to customers, both individuals and businesses. This goes along with the world economy direction towards the digital economies, also comes under the Kingdom Vision 2030 and the national transformation plan 2020 and its pursuit of serious transition to the digital economy because of its positive impact on people lives in health, education, cultural aspects and everything that touches people lives. The company operates through an integrated program of digital transformation for all internal processes, in addition to digitizing various services both in service delivery and after sales services. As an example, the company recently launched (JAWWY) as an innovative mobile service that provides integrated digital platform for STC customers. In this context, the company also had several meetings with different sectors in the Kingdom to achieve homogeneity of employing modern technology with these sectors both in terms of health, education, financial transactions and other sectors. STC is going in this direction, and monitor the great progress in digital communications and its impact on changing the nature of the Telecom sector. Hence the importance of STC vision, to continue to adopt initiatives to invest in the development of non-traditional communications infrastructure, especially the transition to digital services, cloud computing services and managed data services with great emphasis on information security. |
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