STC Q1 profit rises 60pc to $672m
Riyadh, April 18, 2012
Saudi Telecom Co (STC) on Wednesday reported a 60 percent increase in first-quarter net profit, beating analysts' estimates as revenue in its mobile, fixed line, corporate and wholesale divisions rose.
The former monopoly made a profit of 2.52 billion riyals ($672 million) in the three months to March 31, up from 1.57 billion riyals in the year-earlier period.
Analysts polled by Reuters on average forecast STC would post a quarterly profit of 2.05 billion riyals.
"The increase in net income... came as a result (of) the growth in all of the group services revenue," STC said in a statement, referring to its mobile, corporate, fixed line and wholesale units.
Quarterly revenue was 14.7 billion riyals, up from 13.1 billion riyals in the corresponding period of 2011.
STC has won back domestic market share by aggressively pricing broadband bundle packages, while the firm - majority-owned by the government - has operations across the Muslim world from Turkey to Indonesia. - Reuters