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STC remains the preferred telecom in Turkey and Middle East

Saudi Telecom Company (STC) is reaffirmed as a leader among telecommunication companies in Turkey and the Middle East, in an equity research report published by J.P. Morgan Cazenove, the leading global investment bank, on January 15.

The report, which analyzes the network speed of 13 telecoms in five countries, found STC maintains leadership of its peers in the Middle East and Turkey region in network quality. Moreover, the report found that in major cities around Saudi Arabia, STC offers the highest average download and upload speeds, two essential aspects of a user’s mobile broadband experience, significantly outperforming local competitors. Furthermore, the report concludes that STC is better positioned to benefit from the growth in mobile data services in KSA, thanks to its sound pricing system.

Abdulaziz Al Sugair, Managing Director of STC, commented, “Being designated by the prestigious J.P. Morgan as the preferred telecom company in the region makes STC proud of its journey. The report’s findings motivate us further in our quest for quality and excellence.”

The JP Morgan report ranked STC as one of the top three telecoms in which to invest in Turkey and the Middle East. It received a stock-research rating of overweight (OW), indicating analysts’ confidence in the stock performance when comparing average total return of stocks in the same sector over the next six to twelve months.

STC was among the companies displaying a favorable valuation and offering healthier growth profiles when compared to peers in Central and Eastern Europe, Middle East, and Africa (CEEMEA). The report designated STC among companies acting as catalysts in the distribution of ~20 – ~40% of market capitalization in dividends projected in 2015. “STC shall spare no effort in meeting the expectations of customers, shareholders, and community in the years to come,” Al Sugair added.

J.P. Morgan set a one-year price target at SR 82.50 for the stock in 2015, citing the solid financial performance of STC despite the decline in crude oil prices globally.

STC has maintained its successful performance since September of last year, when a previous report by J.P. Morgan Cazenove ranked it as one of the best telecoms in CEEMEA. It illustrates the commitment of STC to fulfill its vision of being the information, communications, and technology (ICT) leader; providing comprehensive, innovative services and solutions that earn customer trust and enrich society.