STC proposes special dividend of $1.3bn for 2023

Reuters/Faisal Al Nasser

The board of directors at Saudi Telecom Company (STC) has proposed a special dividend for 2023 after the company’s profit rose nine percent year on year.

The proposed special dividend payout will total almost SAR5 billion ($1.33 billion) or SAR 1 per share, subject to shareholders’ approval.

In addition, the company announced a cash dividend of SAR2 billion, or SAR0.4 per share, for the fourth quarter of 2023.

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The total STC dividend distribution will reach SAR2.60 per share, representing 26 percent of the stated value per share following the approval of a special cash dividend.

Net profit rose nine percent year on year to SAR13 billion as revenue reached a record high of SAR72 billion last year, up seven percent annually.

Gross profit grew 1 percent year on year to SAR38 billion. On the other hand, operating profit fell 6 percent annually to SAR1.2 billion as finance costs rose SAR574 million and early retirement programme expenses hit SAR497 million.

“The group’s strong performance during 2023 comes as a clear outcome of implementing the group’s strategy in enabling digital transformation and benefiting from it to enhance stc’s expansion plans,” said Olayan bin Mohammed Al Wataid, group CEO of STC Group.