| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
2,377
|
2,202
|
7.95
|
2,527
|
-
|
| Gross profit (loss) |
7,283
|
7,471
|
-
|
7,034
|
3.54
|
| Operational profit (loss) |
2,602
|
2,863
|
-
|
2,605
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) |
4,904
|
4,599
|
6.63 |
| Gross profit (loss) |
14,317
|
14,547
|
- |
| Operational profit (loss) |
5,207
|
5,720
|
- |
| Earning or loss per share, Riyals |
2.45
|
2.3
|
- |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The SR 174m increase in net profit for the 2nd quarter compared to the comparable quarter last year is attributed mainly to the SR 484m increase in Total Other income and expenses during the quarter compared to the comparable period last year, while: 1. Gross profit for the 2nd quarter decreased by SR 188m compared to the comparable quarter last year as a result to the SR 210m decrease in revenues accompanied with SR 22m decrease in cost of revenues during the quarter compared to the comparable quarter last year. 2. Operating profit for the 2nd quarter decreased by SR 261m compared to the comparable quarter last year. |
| Reasons of increase (decrease) for period compared with same period last year | The SR 305m increase in net profit for the 1st half compared to the comparable period last year is attributed mainly to the following: 1. Gross profit for the 1st half decreased by SR 230m compared to the comparable period in the previous year as a result to the SR 609m decrease in revenues accompanied with SR 379m decrease in cost of revenues during the 1st half compared to the comparable period last year. 2. Operating profit for the 1st half decreased by SR 513m compared to the comparable period last year. 3. The SR 819m increase in Total Other income and expenses during the 1st half compared to the comparable period last year, and this is mainly attributed to the following: - The SR 104m increase in the early retirement program cost during the 1st half compared to the same period last year. - The SR 533m decrease in Other income and expenses, net during the 1st half compared to the same period last year. - The booking of SR 179m for Share of gains from investments in associates and joint ventures, net during the 1st half compared to losses of (SR 74m) for the same period last year. - The booking of SR 81m for Other gains and losses, net during the 1st half compared to losses of (SR 47m) for the same period last year. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The SR 151m decrease in net profit for the 2nd quarter compared to the immediate prior quarter is attributed mainly to the following: 1. The SR 249m increase in gross profit during the 2nd quarter compared to the immediate prior quarter (despite the SR 124m increase in cost of revenue compared to the immediate prior quarter) as a result to the SR 373m increase in revenues during the quarter compared to the immediate prior quarter. 2. The SR 150m decrease in Total Other income and expenses during the 2nd quarter compared to the immediate prior quarter. |
| Reclassifications in quarterly financial results | The interim condensed consolidated financial statements for the comparative period 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 Kingdom of Saudi Arabia and Other accredited by the Saudi Organization for Certified Public Accountants. |
| Other notes | Revenue from services for the 1st half amounted to SR 26,033m compared to SR 26,642m for the corresponding period last year, a decrease of 2.3 %, and for the 2nd quarter revenue from services reached 13,203m compared to SR 13,413m for the corresponding period last year, with a decrease of 1.6%. Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) for the 1st half, EBITDA amounted to SR 9,243m compared to SR 9,687m for the corresponding period last year, a decrease of 4.6%, and for the 2nd quarter amounted to SR 4,636m compared to SR 4,869m for the corresponding period last year, a decrease of 4.8%. Total shareholder equity (excluding non-controlling interest) as 30th of June 2017, reached SR 61,047m compared to SR 60,269m as of 1st January 2016 an increase of 1.29%, and compared to SR 59,941m as of 31st December 2016 an increase of 1.84% Total comprehensive income for the 1st half of 2017 reached SR 4,857m compared to SR 4,480m for the corresponding period last year, an increase of 8.4%, and for the 2nd quarter comprehensive income reached 2,342m compared to SR 1,951m for the corresponding period last year, with an increase of 20%, and compared to SR 2,515m for the immediate prior quarter with a decrease 6.9% . Commenting on the results, STC Group CEO, Dr. Khaled H. Biyari, stated: The financial results achieved for the 1st half 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, STC sponsored programs contributed to improve operational efficiency leading to improved income and margins. Therefore, net income for the 2nd quarter increased 7.9% compared to the comparable period last year, and for the 1st half of 2017 net income increased 6.6% compared to the comparable period last year. Dr. Biyari, added the whole region is moving towards digital transformation through elements of the fourth industrial revolution, here comes the importance of Governments in the region to provide the right environment and stimulate investment in digital infrastructure required. STC embraced the Kingdom Vision 2030 and the national transformation program 2020 through multiple initiatives, which include deployment of broadband throughout the Kingdom, the company recently signed with the Ministry of communications and information technology, represented by the communications and information technology Commission an agreement to provide high speed broadband with fiber-optic technology, projected cost of up to SR 7.3 billion, designed to deliver broadband to more than 2 million homes across Government plan under the supervision of the Ministry of communications and information technology. Also, STC will continue to invest in promising technologies and digital sectors, particularly in areas that enable the company to benefit from their assets and infrastructure and help enable growth and expansion of investments in different areas, and the latest company announcement establishing $500 million venture capital fund (STV) to strengthen this trend. |
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