This acquisition represents another milestone in stc’s expansion and growth strategy, and reflects stc’s confidence in Telefónica’s sustainable growth and upside potential. Telefónica benefits from a unique portfolio of best-in-class infrastructure assets and cutting-edge technology platforms, where it is developing state-of-the-art capabilities in adjacent areas such as cognitive intelligence, edge computing and IoT.

During the third quarter of the year 2023, stc completed the purchase of 4.9% direct shareholding in Telefonica. Telefonica is a leading European telecommunications operator through its significant presence in 3 of the largest European markets, namely Spain, Germany and the UK, in addition to Brazil which is the largest market in Latin America. These investments are irrevocably designated at fair value through OCI. stc has received dividends during the fourth quarter of 2023 amounting to SAR 173 million, which is included as other income in the consolidated statement of profit or loss. → For more details, see notes 16.1 – 32.1 in the consolidated annual financial statements.