Logo of solutions by stc
Arabian Internet and Communications Services Co. (solutions by stc) reported a rise of 18.9% in net profit to SAR 461.3 million in the first half of 2021, compared to SAR 338.1 million in the year-earlier period.
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Key Highlights (SAR mln) – Interim Financials |
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|
Item |
H1 2020 |
H1 2021 |
Variation% |
|
Net Revenue |
3,199.1 |
3,803.9 |
+18.9% |
|
Gross Profit Margin |
21.1% |
21.6% |
+0.45% |
|
Net Profit |
388.1 |
461.3 |
+18.9% |
|
Number of Shares (mln) |
120.0 |
120.0 |
-- |
|
Earnings Per Share (SAR) |
3.23 |
3.84 |
+18.9% |
The profit rise was mainly attributed to a growth of 18.9% year-on-year (YoY) in net revenue, backed by an improvement in the company’s operating segment performance.
The following table shows revenue breakdown by sector on a YoY basis:
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Revenue by Segment (SAR mln) |
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|
Period |
H1 2020 |
H1 2021 |
Variation% |
|
Total Revenue of ICT Services |
1,777.5 |
2,028.7 |
+14.1% |
|
Total Revenue of Managed Information Technology (IT) Services |
754.3 |
948.2 |
+25.7% |
|
Total Revenue of Digital Services |
667.3 |
827.0 |
+23.9% |
|
Total Segment Revenue |
3,199.1 |
3,803.9 |
+18.9% |
The company held a market share of 13% in the local IT sector – more than double the share of the second-biggest telecom operator in the Kingdom, thanks to higher segment revenue in the last three years.
The total revenue of operating segments saw a compound annual growth rate (CAGR) of 31% for the period between 2018 and 2020, driven by its core ICT services segment (including system integration and communication and internet services).
The total revenue of the managed IT services business reported a CAGR of 38% for the three-year period, backed by a revenue rise of 57% and 33% YoY in managed services and outsourcing, respectively.
The digital services segment reported a CAGR of 56% for the same period, as revenue from digital services surged 144% YoY, with revenue from cloud and cybersecurity services rising 58% and 37% YoY, respectively.
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Segment Revenue from 2018 to 2020 (SAR mln) |
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|
Segment |
2018 |
2019 |
2020 |
CAGR% |
|
System Integration |
1,727.4 |
2,085 |
2,316 |
%15.8 |
|
Communication and Internet Services |
838.3 |
875 |
1,428 |
%30.5 |
|
Total Revenue of ICT Services |
2,565.7 |
2,960 |
3,744 |
%20.8 |
|
Outsourcing |
690 |
903 |
1,229 |
%33.5 |
|
Managed Services |
163.4 |
252 |
401 |
%56.8 |
|
Total Revenue of Managed IT Services |
853.4 |
1,155 |
1,630 |
%38.2 |
|
Cloud Services |
270 |
478 |
677 |
%58.3 |
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Cybersecurity Services |
308 |
430 |
578 |
%37.0 |
|
Digital Services |
44 |
234 |
262 |
%144.0 |
|
Total Revenue of Digital Services |
622 |
1,142 |
1,517 |
%56.2 |
|
Total Segment Revenue |
4,041 |
5,257 |
6,891 |
%30.6 |
The following chart illustrates revenue by segment between 2018 and 2020:
The following table shows sales and net profit between 2018 and 2020:
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Income Statement (SAR mln) |
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|
Item |
2018 |
2019 |
2020 |
|
Net Revenue |
4,041.3 |
5,257.3 |
6,891.4 |
|
Net Profit |
556.5 |
393.8 |
701.8 |
|
Number of Shares (mln) |
120.0 |
120.0 |
120.0 |
|
Earnings per Share (SAR) |
4.64 |
3.28 |
5.85 |
The following chart illustrates revenue and net profit between 2018 and 2020:
The following table shows solutions by stc’s balance sheet between 2018 and 2020:
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Balance Sheet between 2018 and June 2021 (SAR mln) |
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|
Item |
2018 |
2019 |
2020 |
June 2021 |
|
Current Assets |
4,261.2 |
4,523.3 |
5,571.0 |
5,324.5 |
|
Non-Current Assets |
188.8 |
354.1 |
763.6 |
782.5 |
|
Total Assets |
4,450.0 |
4,877.4 |
6,334.6 |
6,107.0 |
|
Current Liabilities |
2,658.9 |
3,377.3 |
4,068.1 |
3,777.6 |
|
Non-Current Liabilities |
125.8 |
243.3 |
342.9 |
264.4 |
|
Total Liabilities |
2,784.7 |
3,620.6 |
4,411.1 |
4,042.0 |
|
Capital |
100.0 |
100.0 |
1,200.0 |
1,200.0 |
|
Shareholders’ Equity |
1,665.4 |
1,256.8 |
1,923.6 |
2,065.0 |
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