Saudi Telecom Q3 profit surges 25pc
Riyadh, October 20, 2012
Saudi Telecom Company (STC), the Gulf's No.1 telecom operator, reported a 25 per cent jump in third-quarter profit, missing market expectations.
The increase in net profit was because of growth in broadband and business sector services as well as higher revenue from international operations, Saudi Telecom said on Saturday.
The former monopoly made a net profit of SR1.95 billion ($520 million) in the three months to September 30, compared with a forecast for 2.42 billion in a Reuters poll.
Operating income rose 0.5 per cent to SR3.02 billion and revenue from services increased 8 per cent to SR15.1 billion. It will pay a dividend of 0.50 riyal per share, totalling SR1 billion, out of third-quarter profit.
Soaring demand for broadband has lifted earnings in recent quarters, with STC offering bundle packages to woo customers back from rival operators Etihad Etisalat (Mobily) - an affiliate of UAE operator Etisalat, and Zain Saudi - part-owned by Kuwaiti group Zain.
STC, which remains majority government-owned company nearly a decade after bring listed, is the largest Gulf telecom operator by market value, with operations across the Muslim world from Indonesia to Turkey.-Reuters
More IT & Telecommunications Stories
- Etisalat unveils 100 MB data for prepaid users
- Du backs UAE entrepreneurs unit
- Aruba names new EMEA vice president
- Survey to measure UAE mobile radiation levels
- Zain Bahrain on track to launch new network
- Microsoft assures foreign customers on spying
- Batelco wins ‘telecom deal’ award
- Samena summit focus on telecom issues
- US firm offers IT security software for SMBs
- US firm supplies biometric software to Saudi