STC posts 6% profit growth in Q1 on higher revenue

22/04/2019 Argaam Exclusive

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Share Price

38.45
0.30 0.79 %

Saudi Telecom Co. (STC)

Saudi Telecom Co. (STC) reported a net profit after zakat and tax of SAR 2.75 billion in Q1 2019, a rise of 6.3 percent, or SAR 162 million year-on-year (YoY), thanks to a rise of SAR 1.03 billion in revenue, and an increase of SAR 969 million in gross profit.

Compared to the previous quarter, the first-quarter’s net profit dropped 11.5 percent, or SAR 356 million, driven by a rise of SAR 76 million in cost of financing after the implementation of the IFRS 16.



Current Quarter Comparison (M)

Compared With The
Item Q1 2018 Q1 2019 Change‬
Revenues 12,349.08 13,385.75 8.4 %
Gross Income 6,934.85 7,903.48 14.0 %
Operating Income 2,632.35 3,275.20 24.4 %
Net Income 2,587.53 2,749.74 6.3 %
Average Shares 5,000.00 5,000.00 -
EPS (Riyals) 0.52 0.55 6.3 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2010 12,519.63 3.1 % 7,159.87 (9.5 %) 1,772.03 (28.8 %) 0.35
Q2 2010 12,591.24 (0.7 %) 7,334.89 (5.0 %) 2,061.99 (31.0 %) 0.41
Q3 2010 13,232.39 2.3 % 7,884.82 1.7 % 3,316.80 38.0 % 0.66
Q4 2010 13,443.57 3.2 % 7,943.03 4.4 % 2,285.51 (23.4 %) 0.46
Q1 2011 13,076.30 4.4 % 7,488.43 4.6 % 1,573.12 (11.2 %) 0.31
Q2 2011 13,879.67 10.2 % 7,951.89 8.4 % 2,256.37 9.4 % 0.45
Q3 2011 14,015.11 5.9 % 8,073.04 2.4 % 1,562.48 (52.9 %) 0.31
Q4 2011 14,691.00 9.3 % 7,814.90 (1.6 %) 2,336.69 2.2 % 0.47
Q1 2012 11,067.36 (15.4 %) 6,329.04 (15.5 %) 2,521.16 60.3 % 0.50
Q2 2012 11,013.03 (20.7 %) 6,352.24 (20.1 %) 2,407.57 6.7 % 0.48
Q3 2012 11,429.91 (18.4 %) 6,459.29 (20.0 %) 1,953.80 25.0 % 0.39
Q4 2012 11,234.77 (23.5 %) 6,121.14 (21.7 %) 393.44 (83.2 %) 0.08
Q1 2013 11,473.88 3.7 % 6,494.46 2.6 % 1,549.96 (38.5 %) 0.31
Q2 2013 11,433.47 3.8 % 6,733.78 6.0 % 1,428.95 (40.6 %) 0.29
Q3 2013 11,426.85 0.0 % 7,193.36 11.4 % 3,385.59 73.3 % 0.68
Q4 2013 11,270.43 0.3 % 6,991.64 14.2 % 3,532.57 797.9 % 0.71
Q1 2014 10,782.89 (6.0 %) 6,211.34 (4.4 %) 2,390.94 54.3 % 0.48
Q2 2014 11,722.00 2.5 % 7,023.53 4.3 % 2,803.35 96.2 % 0.56
Q3 2014 11,754.61 2.9 % 7,620.88 5.9 % 3,371.75 (0.4 %) 0.67
Q4 2014 11,848.40 5.1 % 7,300.50 4.4 % 2,442.39 (30.9 %) 0.49
Q1 2015 12,473.48 15.7 % 7,543.92 21.5 % 2,503.58 4.7 % 0.50
Q2 2015 12,222.15 4.3 % 7,164.16 2.0 % 2,558.33 (8.7 %) 0.51
Q3 2015 12,894.71 9.7 % 7,624.10 0.0 % 2,322.15 (31.1 %) 0.46
Q4 2015 13,246.19 11.8 % 8,010.86 9.7 % 1,950.49 (20.1 %) 0.39
Q1 2016 13,228.62 6.1 % 7,076.10 (6.2 %) 2,396.58 (4.3 %) 0.48
Q2 2016 13,412.97 9.7 % 7,470.82 4.3 % 2,202.19 (13.9 %) 0.44
Q3 2016 14,025.79 8.8 % 7,117.39 (6.6 %) 2,216.94 (4.5 %) 0.44
Q4 2016 13,010.95 (1.8 %) 7,023.48 (12.3 %) 2,083.16 6.8 % 0.42
Q1 2017 12,524.11 (5.3 %) 6,923.88 (2.2 %) 2,534.75 5.8 % 0.51
Q2 2017 13,041.18 (2.8 %) 6,911.04 (7.5 %) 2,356.48 7.0 % 0.47
Q3 2017 12,621.35 (10.0 %) 7,400.59 4.0 % 2,569.37 15.9 % 0.51
Q4 2017 12,502.72 (3.9 %) 7,347.91 4.6 % 2,554.98 22.6 % 0.51
Q1 2018 12,349.08 (1.4 %) 6,934.85 0.2 % 2,587.53 2.1 % 0.52
Q2 2018 13,079.39 0.3 % 7,167.18 3.7 % 2,444.05 3.7 % 0.49
Q3 2018 13,319.89 5.5 % 7,850.74 6.1 % 2,642.62 2.9 % 0.53
Q4 2018 13,214.89 5.7 % 8,520.31 16.0 % 3,105.58 21.5 % 0.62
Q1 2019 13,385.75 8.4 % 7,903.48 14.0 % 2,749.74 6.3 % 0.55

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2010 59.13 % 38.04 % 18.46 %
Q2 2010 58.46 % 36.87 % 16.76 %
Q3 2010 58.38 % 37.29 % 16.59 %
Q4 2010 58.55 % 37.89 % 15.00 %
Q1 2011 58.56 % 38.16 % 14.11 %
Q2 2011 58.30 % 38.33 % 14.10 %
Q3 2011 57.81 % 37.38 % 12.29 %
Q4 2011 56.28 % 35.98 % 12.71 %
Q1 2012 56.23 % 36.23 % 15.29 %
Q2 2012 56.25 % 36.51 % 16.45 %
Q3 2012 55.92 % 36.12 % 18.33 %
Q4 2012 56.46 % 36.37 % 16.78 %
Q1 2013 56.32 % 36.28 % 14.97 %
Q2 2013 56.63 % 37.08 % 15.19 %
Q3 2013 58.25 % 39.08 % 18.18 %
Q4 2013 60.11 % 40.50 % 23.56 %
Q1 2014 60.41 % 41.03 % 25.29 %
Q2 2014 60.66 % 40.71 % 25.74 %
Q3 2014 61.16 % 41.37 % 25.61 %
Q4 2014 61.07 % 41.16 % 23.64 %
Q1 2015 61.69 % 41.53 % 23.13 %
Q2 2015 61.35 % 41.33 % 22.39 %
Q3 2015 59.94 % 39.46 % 19.94 %
Q4 2015 59.69 % 38.10 % 18.54 %
Q1 2016 57.91 % 36.88 % 18.13 %
Q2 2016 57.18 % 36.19 % 16.93 %
Q3 2016 55.04 % 34.38 % 16.29 %
Q4 2016 53.44 % 33.59 % 16.60 %
Q1 2017 53.87 % 33.53 % 16.93 %
Q2 2017 53.18 % 32.69 % 17.35 %
Q3 2017 55.20 % 34.28 % 18.44 %
Q4 2017 56.39 % 37.24 % 19.76 %
Q1 2018 56.61 % 37.32 % 19.93 %
Q2 2018 57.07 % 38.25 % 20.09 %
Q3 2018 57.17 % 38.48 % 19.96 %
Q4 2018 58.64 % 38.17 % 19.95 %
Q1 2019 59.32 % 39.05 % 19.87 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2010 5,000.00 2.03 1.89 8.50
Q2 2010 5,000.00 1.84 1.71 8.45
Q3 2010 5,000.00 2.03 1.70 8.94
Q4 2010 5,000.00 1.89 1.55 9.00
Q1 2011 5,000.00 1.85 1.48 9.05
Q2 2011 5,000.00 1.89 1.51 9.26
Q3 2011 5,000.00 1.54 1.34 9.15
Q4 2011 5,000.00 1.55 1.42 9.38
Q1 2012 5,000.00 1.74 1.64 9.81
Q2 2012 5,000.00 1.77 1.67 10.03
Q3 2012 5,000.00 1.84 1.77 10.34
Q4 2012 5,000.00 1.46 1.50 10.27
Q1 2013 5,000.00 1.26 1.35 10.34
Q2 2013 5,000.00 1.07 1.38 10.39
Q3 2013 5,000.00 1.35 1.66 10.81
Q4 2013 5,000.00 1.98 2.15 11.25
Q1 2014 5,000.00 2.15 2.27 11.40
Q2 2014 5,000.00 2.42 2.33 11.74
Q3 2014 5,000.00 2.42 2.33 12.04
Q4 2014 5,000.00 2.20 2.18 12.08
Q1 2015 5,000.00 2.22 2.21 12.06
Q2 2015 5,000.00 2.18 2.16 12.13
Q3 2015 5,000.00 1.97 1.97 12.07
Q4 2015 5,000.00 1.87 1.89 12.11
Q1 2016 5,000.00 1.85 1.87 11.94
Q2 2016 5,000.00 1.77 1.79 11.88
Q3 2016 5,000.00 1.75 1.76 11.90
Q4 2016 5,000.00 1.78 1.78 11.99
Q1 2017 5,000.00 1.81 1.79 12.11
Q2 2017 5,000.00 1.84 1.83 12.21
Q3 2017 5,000.00 1.91 1.89 12.33
Q4 2017 5,000.00 2.00 2.00 12.57
Q1 2018 5,000.00 2.01 2.01 12.69
Q2 2018 5,000.00 2.03 2.03 12.76
Q3 2018 5,000.00 2.05 2.05 12.87
Q4 2018 5,000.00 2.16 2.07 13.10
Q1 2019 5,000.00 2.19 2.11 13.67

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2010 9.36 10.06 2.24
Q2 2010 8.18 8.81 1.78
Q3 2010 7.64 9.08 1.73
Q4 2010 9.03 10.97 1.89
Q1 2011 8.34 10.43 1.70
Q2 2011 7.72 9.63 1.57
Q3 2011 8.86 10.17 1.49
Q4 2011 8.75 9.55 1.44
Q1 2012 9.40 9.95 1.66
Q2 2012 8.95 9.46 1.57
Q3 2012 8.61 8.99 1.54
Q4 2012 11.90 11.53 1.69
Q1 2013 12.44 11.60 1.52
Q2 2013 14.98 11.53 1.54
Q3 2013 12.78 10.43 1.60
Q4 2013 10.81 9.96 1.90
Q1 2014 12.29 11.62 2.32
Q2 2014 11.02 11.47 2.27
Q3 2014 12.29 12.76 2.47
Q4 2014 11.94 12.06 2.18
Q1 2015 11.29 11.35 2.08
Q2 2015 12.41 12.48 2.23
Q3 2015 12.47 12.43 2.03
Q4 2015 14.66 14.52 2.26
Q1 2016 13.92 13.74 2.15
Q2 2016 14.52 14.41 2.17
Q3 2016 12.69 12.67 1.87
Q4 2016 16.31 16.29 2.42
Q1 2017 14.80 14.91 2.21
Q2 2017 16.76 16.88 2.52
Q3 2017 14.83 14.99 2.30
Q4 2017 13.70 13.70 2.18
Q1 2018 16.46 16.46 2.61
Q2 2018 17.66 17.66 2.81
Q3 2018 16.72 16.72 2.66
Q4 2018 17.03 17.71 2.80
Q1 2019 19.67 20.43 3.15

Business Segments (Million)

Compared With The
Period STC (Saudi arabia) STC channels Company Other operating segments Consolidation adjustments & eliminations GSM Landline DATA Un-allocated
Q1 2010 - - - - 8,370.42 2,321.45 1,754.34 73.42
Q2 2010 - - - - 8,274.92 2,514.25 1,744.81 57.26
Q3 2010 - - - - 8,698.56 2,678.44 1,744.34 111.06
Q4 2010 - - - - 8,815.84 2,641.88 1,897.42 88.43
Q1 2011 - - - - 8,612.49 2,145.44 2,210.45 107.93
Q2 2011 - - - - 9,300.53 2,165.08 2,279.18 134.88
Q3 2011 - - - - 9,535.33 1,968.75 2,358.25 152.78
Q4 2011 - - - - 10,460.75 2,030.05 2,539.65 (339.46)
Q1 2012 - - - - 7,231.45 3,163.66 775.96 (103.71)
Q2 2012 - - - - 5,953.44 2,773.26 2,747.33 (461.00)
Q3 2012 - - - - 6,321.44 3,061.54 2,038.38 8.55
Q4 2012 - - - - 6,534.06 3,295.52 1,450.81 (45.62)
Q1 2013 - - - - 5,912.96 3,401.35 2,121.21 38.36
Q2 2013 - - - - 6,276.02 3,413.90 1,645.45 98.11
Q3 2013 - - - - 5,947.77 3,195.58 2,156.72 126.77
Q4 2013 - - - - 6,048.69 3,174.74 2,296.23 (249.24)
Q1 2014 - - - - 6,038.19 3,013.96 1,728.00 2.75
Q2 2014 - - - - 6,352.36 3,157.29 2,215.10 (2.75)
Q3 2014 - - - - 6,159.92 2,950.32 2,639.42 4.95
Q4 2014 - - - - 6,070.61 3,035.10 2,471.11 (10.68)
Q1 2015 - - - - 8,440.66 3,066.91 967.15 (1.23)
Q2 2015 - - - - 7,996.74 3,171.23 1,057.86 (3.68)
Q3 2015 - - - - 8,401.59 2,981.61 1,511.66 (0.15)
Q4 2015 - - - - 8,640.52 3,050.16 1,273.82 95.77
Q1 2016 11,140.70 864.25 1,976.63 (752.96) - - - -
Q2 2016 11,759.92 814.10 2,092.28 (1253.32) - - - -
Q3 2016 11,578.66 694.60 2,148.24 (395.70) - - - -
Q4 2016 11,718.75 655.71 1,988.92 (2357.10) - - - -
Q1 2017 10,797.74 666.17 1,613.10 (552.90) - - - -
Q2 2017 11,131.56 742.11 2,239.26 (1071.76) - - - -
Q3 2017 9,839.32 467.79 2,071.73 242.50 - - - -
Q4 2017 9,676.60 1,179.03 2,425.11 (806.03) - - - -
Q1 2018 9,698.95 1,252.37 2,042.44 (644.69) - - - -
Q2 2018 9,897.49 1,647.03 2,430.66 (895.78) - - - -
Q3 2018 10,197.06 1,110.89 2,416.37 (404.43) - - - -
Q4 2018 9,562.79 12,872.44 2,613.09 (11833.44) - - - -
Q1 2019 9,512.20 2,322.58 2,531.06 (980.09) - - - -

Analysts Estimates (Million)

Item Q1 2019 (e) Q1 2019 (a) Change‬
Average 2,599.03 2,749.74 5.80 %

Estimates vs Actual (Million)

Item Q1 2019 (e) Q1 2019 (a) Change
AlJazira Capital 2,661.10 2,749.74 3.3 %
Al Rajhi Capital 2,657.00 2,749.74 3.5 %
SNB Capital 2,647.00 2,749.74 3.9 %
Sico 2,643.00 2,749.74 4.0 %
OSOOL AND BAKHEET 2,562.10 2,749.74 7.3 %
Riyad Capital 2,424.00 2,749.74 13.4 %

Current
Market Cap (M Riyal) 192,250.00
Enterprise Value (EV) (M) 188,504.98
Shares Outstanding ((M)) 5,000.00
EPS ( Riyal) (TTM) 2.69
Book Value (BV) ( Riyal) 16.09
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 16.98
P/E (TTM) 14.27
Price/book 2.39
Return on Average Assets (%) (TTM) 9.0
Return on Average Equity (%) (TTM) 17.4

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