Solutions by STC, a subsidiary company, gets $133 million in Islamic-compliant funding from Riyad Bank
Solutions by STC, officially called Arabian Internet and Communications Services Company, announced on Tuesday that its subsidiary, Contact Center Company, has secured a $133.1 million (SAR 500 million) Sharia-compliant loan from Riyad Bank.
Bank Facility
Solutions by STC announced on Tuesday through the Saudi Exchange (Tadawul) that it has secured a one-year bank facility. The funds will be used for day-to-day operations and issuing guarantees.
In April 2023, Solutions by STC bought Contact Centers Company, a business outsourcing firm, for $121.5 million. Earlier in February, it acquired 40% of Devoteam Middle East (DME) for $197.7 million. These moves are part of its plan to expand and offer more digital and innovative services in the region.
Third-Quarter Results
Last month, Solutions by STC, which is 79% owned by Saudi Telecom Company (STC), reported a 19.6% increase in net profit for the third quarter, reaching $123.3 million (SAR 463 million). This growth was mainly due to lower operating expenses and reduced zakat and tax charges.
However, revenue for the July-September period dropped by 1.5% to $733.1 million (SAR 2.8 billion), compared to $744.3 million (SAR 2.8 billion) in the same quarter last year. This decline was caused by lower income from core ICT services and IT managed and operational services.
The company’s operating profit for the quarter increased by 10.7% year-on-year to $129.2 million (SAR 485 million).
Big number
The market value of Solutions by STC is $8.7 billion (SAR 32.7 billion). This happened after its share price rose by 0.8% to $73.12 (SAR 274.6) as of 11:59 AM AST on Tuesday on the Saudi Exchange.
Published: 26th November 2024
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