STC's net income for the quarter increased 5.4% YoY and 21.3% compared to the immediate prior quarter as the company managed to reduce the cost of revenues by 4.3% and reduce operating expenses by 13.6% compared to the previous quarter. Earnings per share for the 1st quarter grew to reach SR 1.26($0.34) compared to SR 1.20($0.32) for the comparable quarter last year. STC will distribute a total of SR 2,000 million ($533 million) in cash dividend for Q1 2017, representing SR 1($0.27) per share.
“The financial results achieved for the 1st quarter of 2017 reflects the efforts being made to constantly evolve, improve and develop the company’s strategy and operations and achieve the best returns for the shareholders. Despite the various difficulties facing the sector, company sponsored programs contributed to improve operational efficiency and cost control leading to improved income and margins,” said STC group CEO, Dr. Khaled H. Biyari.
He added that STC continues to invest in digital platforms to provide unique and innovative services to customers, both individuals and businesses, in sync with the direction of the world economy towards the digital economies. “The importance of STC's vision is to continue to adopt initiatives to invest in the development of non-traditional communications infrastructure, especially the transition to digital services, cloud computing services and managed data services with great emphasis on information security.”