The company Saudi Telecom Company (STC)controlled in 62% by the Public Investment Fund (PIF) of Saudi Arabia, has expressed interest in exploring new investment opportunities in Europe. This arises after having completed the acquisition of 9.97% of Telefónica, an operation valued at 2.1 billion euros that a seat in the Board of Directors of the company chaired by Marc Murtra.
STC stressed that its focus on mergers and acquisitions is selective and cautious, carefully analyzing each case. The company focuses on solid opportunities within its region, but it is also actively exploring opportunities in Europe. At a conference with analysts after presenting the results of the year 2024, the company mentioned: “While there is nothing to announce at this time, we are actively exploring opportunities and any significant development will communicate to the market”.
Participation in the Telefónica Council
It is important to remember that STC has achieved a seat in the board of directors of Telefónica by acquiring 9.97% of the Spanish company in September 2023. This operation was completed after the authorization of the government and the conversion of the part of the transaction made with financial derivatives in direct actions.
The incursion in Telefónica is considered a milestone in the STC expansion and growth strategy, demonstrating its confidence in the growth potential of the Spanish company.
The Public Investment Fund (PIF), which controls 62% of STC, has shown interest in Europe. An example of this is the recent creation of the largest company of Torres de Telecomunicaciones in Saudi Arabia, the result of the fusion between Telecommunications Tower Company Limited (Tawal) and Golden Latice Investment Company (GLIC). This new company will manage around 30,000 locations, mainly in Croatia, Slovenia, Bulgaria, Saudi Arabia and Pakistan.
The Torres company, controlled at 54.38% per PIF and 43.06% per STC, is expected to generate an annual turnover of approximately 1.3 billion dollars. He aspires to become the ‘Saudi national champion in this segment.
Regarding the financial results of STC in 2024, the company registered attributed net profits of 24,689 million Saudi rials (approximately 6,063 million euros), which represents an increase of 85.7% compared to the previous year. The billing reached 75,893 million rials (18,883 million euros), an increase of 5.73% compared to the previous year.
The company’s Ebitda closed at 23,926 million rials (almost 6,876 million euros) in 2024, showing an increase of 6.6% year -on -year. The Ebitda margin on sales was 31.52%, representing an increase of 13 percentage points compared to the previous year.