stc pay incurs SAR 440.4 mln losses in 2021

Logo of stc pay

stc pay, an 85%-owned subsidiary of Saudi telco stc, reported losses of SAR 440.4 million for 2021.

stc’s share of the losses reached around SAR 374.4 million.

Meanwhile, revenue amounted to nearly SAR 834 million in 2021.

Net cash flow amounted to nearly SAR 1.110 billion by the end of 2021 after recording SAR 1.544 billion cash flows from financing activities. Meanwhile, the company reported negative cash flows from operating and investment activities of SAR 355.5 million and SAR 77.9 million, respectively.

The following table shows a summary of stc pay’s balance sheet at the end of 2021 and stc’s share in net assets:

In 2017, Arabian Internet and Communication Services Co. (solutions) established stc pay, with SAR 100 million in capital. Its ownership was transferred to stc in 2019, and its capital was raised to SAR 400 million during the same year.

In 2020, stc pay was licensed as an electronic wallet by the Saudi Central Bank (SAMA), and 15% of its stake was sold to Western Union for SAR 750 million.

In 2021, the company obtained the digital banking services license, with a capital of SAR 2.5 billion. A total of SAR 1.55 billion was deposited in an account with SAMA until the final approval was received.

stc pay also agreed with Western Union on raising the non-controlling stake by SAR 251 million. The parent company’s total equity attributable to shareholders increased by SAR 499 million.