العربية

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stc
Annual Report
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A brief overview of stc
Group

 

,The performance, activities

and investments of stc Group

and its subsidiaries during

the year 2022

 

Risks management

and transactions with

related parties

 

Board of Directors and
Committees

 

Dividends Policy and Distribution

and Board Recommendations and

Compensation

 

Conclusion

 

Financial Consolidated

Statements

A brief overview of stc Group The performance, activities, and
nvestments of stc Group and
its subsidiaries during the year 2022 Risks management and transactions
with related parties Board of Directors and Committees Dividends Policy and
Distribution and Board
Recommendations and Compensation Conclusion Financial Consolidated
Statements
About stc

A Brief Overview of the Group’s

History and its Business and Activities

brief-img

A Brief Overview of the Group’s

History and its Business and Activities

About stc

Saudi Telecom Company –stc- was established as a Saudi Joint Stock Company pursuant to Royal Decree No. M/35 dated 24 Dhul Hijja 1418H (corresponding to 21 April 1998)

that authorized the transfer of the telegraph and telephone division of the Ministry of Post, Telegraph and Telephone (“MoPTT”) with its various components, technical and administrative facilities to stc in accordance with the Council of Ministers’ Resolution No. 213 dated 23 Dhul Hijja 1418H (corresponding to 20 April 1998) that approved stc by-laws (“By-laws”). stc was wholly owned by the Government of the Kingdom of Saudi Arabia (the “Government”). The Government sold 30% of its shares pursuant to the Council of Ministers Resolution No. 171 dated 2 Rajab 1423H (corresponding to 9 September 2002).

During the year 2022 stc’s capital has been increased by 150% via capitalizing SAR 30 billion of retained earnings and granted 1.5 bonus share for each 1 share owned by shareholders at the eligibility date. Thus, stc’s capital increased from SAR 20 billion to SAR 50 billion. The increase in stc’s capital will support achieving its growth and expansion strategy along with maximizing its shareholder’s return thru increasing and diversifying stc’s investments and seizing the expected growth opportunities in the telecommunication & technology sector in the Kingdom of Saudi Arabia and the region.

The Public Investment Fund (“PIF”) is the ultimate controlling shareholder of stc through its ownership of 64% after the sale of 6% of stc’s shares through a secondary offering during the year 2021. stc commenced its operation as the provider of telecommunications services throughout the Kingdom of Saudi Arabia (“the Kingdom”) on 6 Muharram 1419H (corresponding to 2 May 1998) and received its Commercial Registration No. 1010150269 as a Saudi Joint Stock Company on 4 Rabi al-Awal 1419H (corresponding to 29 June 1998). stc’s head office is located in King Abdulaziz Complex, Imam Mohammed Bin Saud Street Al Mursalat Area, Riyadh, Kingdom of Saudi Arabia.

Since its inception and listing in the Saudi Stock Exchange, stc has gone through many substantial milestones in its history, which led to the growth and expansion of stc until it became the leader in the communications and information technology sector in the Middle East, as stc operates the largest FTTH and mobile network in the middle east covering more than 99% of the populated areas in the Kingdom, in addition to providing 4G mobile broadband to about 90% of the population throughout the Kingdom, where it implemented more than 7,300 sites with 5G technology distributed in more than 78 cities, as the coverage of the total inhabited area in the Kingdom reached 40.40% and connected 95% of the total 5G sites with optical fibers.

stc has invested in many sectors and companies in order to support its operations, diversify its services, and keep pace with the continuous and rapid changes and developments in the communications and information technology sector. stc continues to build its financial and operational capabilities with the aim of providing high quality services and a unique experience to its customers. stc is considered the largest telecom operator in the Middle East and North Africa region on the basis of market capitalization, as it exceeded SAR 182 billion. stc ranked among the top 50 digital companies in the world and first in the Middle East and North Africa region according to Forbes magazine.

stc conducts its operational business in the kingdom and it has various investments in associate companies, subsidiaries, and joint ventures, collectively known in financial statements as the “Group”.

Brief

Activities of stc:

The main activities of stc and its subsidiaries (collectively referred to as the “Group”) comprise the provision of telecommunications, information, media services and digital payments, which include, among other things:

1.

Establish, manage, operate and maintain fixed and mobile telecommunication networks, systems and infrastructure.

2.

Deliver, provide, maintain and manage diverse telecommunication and information technology (IT) services to customers.

3.

Prepare the required plans and necessary studies to develop, implement and provide telecom and IT services covering all technical, financial and administrative aspects. In addition, prepare and implement training plans in the field of telecommunications and IT, and provide consultancy services.

4.

Expand and develop telecommunication networks, systems, and infrastructure by utilizing the most current devices and equipment in telecom technology, especially in the fields of providing and managing services, applications and software.

5.

Provide integrated communication and information technology solutions which include, among other things, telecom, IT services, managed services, cloud services and internet of things)

6.

Provide information-based systems and technologies to customers including providing telecommunication means for the transfer of internet services.

7.

Wholesale and retail trade, import, export, purchase, own, lease, manufacture, promote, sell, develop, design, setup and maintain devices, equipment, and components and executing contracting works that are related to different telecom networks including fixed, moving and private networks. In addition, computer programs and the other intellectual properties.

8.

Real estate investment and the resulting activities, such as selling, buying, leasing, managing, developing and maintenance.

9.

Acquire loans and own fixed and movable assets for intended use.

10.

Provide financial and managerial support and other services to subsidiaries.

11.

Provide development, training, asset management and other related services.

12.

Provide solutions for decision support, business intelligence and data investment.

13.

Provide supply chain and other related services.

14.

Provide digital banking services.

15.

Provide cybersecurity services.

16.

Construction, maintenance and repair of telecommunication and radar stations and towers.

Moreover, stc is entitled to set up individual companies as limited liability or closed joint stock. It may also own shares in, or merge with, other companies, and it has the right to partner with others to establish joint stock, limited liability or any other entities whether inside or outside the Kingdom.

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