Mr. Abdulrahman Hamad Alrubaia
Chief Financial Officer
solutions by stc delivered an excellent financial performance in 2023, primarily driven by its strategic growth and diversification agenda, as regional and international businesses continue to embrace and expand their investment in innovation.
As the Kingdom’s leading end-to-end digital transformation and technological solutions provider, the Company is perfectly positioned to play a pivotal role in the growing demand for IT evolution.
Robust Growth in all Segments
Posting a revenue of SAR 11,040, an increase of 25.4% compared to 2022 and a net profit of SAR 1,192, up by 13.2%, solutions by stc’s substantial double-digit growth trend continued with EBIDTA at 19.9% and assets at 11.5%. Combining acceleration of revenue growth with investments in new capabilities and technologies positions Solutions for enhanced returns in the long run. Company profitability standards also were high with Return on Invested Capital (ROIC) and Return on Capital Employed (ROCE) registering good results.
Top line growth was driven by IT Managed and Operational Services, showing a 40.0% year-on-year increase, accounting for 29.5% of total revenue. Core ICT Services grew by 25.6% year-on-year, contributing 54.3% to total revenue, while Digital Services posted 4.7% growth, making up 16.2% of total revenue.
Revenue (SAR)
11,040
(25.4% YoY increase)
EBITDA margin (%)
15.1%
(-4.4% YoY decrease)
Free cash flow
1,150
(-27.9% YoY decrease)
Gross profit
2,598
(29.2% YoY increase)
Net profit
1,192
(13.2% YoY increase)
Net debt/(cash)
(2,728)
(7.0% YoY increase)
Gross profit margin (%)
23.5%
(3.0% YoY increase)
Net profit margin (%)
10.8%
(-9.5% YoY decrease)
ROIC
31.7%
(3.5% YoY increase)
EBITDA
1,669
(19.9% YoY increase)
Capex
112 Mn.
(-16% YoY decrease)
ROAE
38.6%
(-6.4% YoY decrease)
FY 2023 Revenue Composition by Segment
FY 2022 Revenue Composition by Segment
FY 2023 Revenue Composition by Type
FY 2022 Revenue Composition by Type
Income Statement (5-year summary)
| 2023 AR (SAR 000) |
2022 AR (SAR 000) |
2021 AR (SAR 000) |
2020 AR (SAR 000) |
2019 AR (SAR 000) |
|
|---|---|---|---|---|---|
| Revenue (net) | 11,040,493 | 8,805,091 | 7,208,337 | 6,891,419 | 5,257,296 |
| Cost of revenue | (8,442,875) | (6,793,845) | (5,500,370) | (5,469,447) | (4,410,052) |
| Gross profit | 2,597,618 | 2,011,246 | 1,707,967 | 1,421,972 | 847,245 |
| Total operating expenses | (1,210,729) | (851,015) | (808,863) | (664,965) | (499,216) |
| Operating profit | 1,386,889 | 1,160,231 | 899,104 | 757,007 | 348,028 |
| Other income (and expenses) | 17,837 | 11,268 | 4,921 | (3,234) | 86,730 |
| Zakat | (209,581) | (117,786) | (71,107) | (51,978) | (40,933) |
| Net profit | 1,192,148 | 1,052,869 | 832,919 | 701,796 | 393,825 |
| Gross profit margin | 23.5% | 22.8% | 23.7% | 20.6% | 16.1% |
| Net profit margin | 10.8% | 12% | 12% | 10% | 7% |
Assets, Liabilities, and Equity
|
2023 AR (SAR 000) |
2022 AR (SAR 000) |
2021 AR (SAR 000) |
2020 AR (SAR 000) |
2019 AR (SAR 000) |
|
|---|---|---|---|---|---|
| Total current assets | 10,296,333 | 9,374,468 | 6,446,295 | 5,571,035 | 4,523,290 |
| Total non-current assets | 1,219,911 | 950,616 | 726,453 | 763,592 | 354,098 |
| Total Assets | 11,516,244 | 10,325,084 | 7,172,748 | 6,334,628 | 4,877,388 |
| Total Current Liabilities | 7,195,438 | 6,706,846 | 4,634,258 | 4,068,116 | 3,377,268 |
| Total Non-Current Liabilities | 968,252 | 778,682 | 267,922 | 342,948 | 243,296 |
| Total Liabilities | 8,163,690 | 7,485,528 | 4,902,180 | 4,411,063 | 3,620,564 |
| Total Equity | 3,323,963 | 2,809,880 | 2,270,568 | 1,923,564 | 1,256,824 |
| Total Liabilities and Equity | 11,516,244 | 10,325,084 | 7,172,748 | 6,334,628 | 4,877,388 |
