Saudi Telecom’s Q3 net profit up 25%

ZAWYA DOW JONES

DUBAI

SAUDI Telecom Co (STC), the kingdom’s biggest telecom operator, posted a 25 percent increase in third quarter profit as revenues grew on the back of broadband and its international operations, but still missed most analysts expectations.

Its three-month net profit amounted to 1.95 billion Saudi riyals ($521 million), up from SAR1.56 billion a year earlier, STC said in a statement posted on the Saudi bourse website.

EFG Hermes had expected its quarterly profit at SAR2.49 billion, while NCB Capital had pencilled in a SAR2.45 billion effort.

STC said the rise in quarterly profit was due to the increase in operating revenue “which came as a result of the growth in Broadband (fixed & mobile), Business sector services and wholesales services revenues domestically and the overall growth in revenues from international operations”.

The company’s wireless broadband customer base grew 17 percent in the third quarter, compared with the previous three-month period, resulting in a 68 percent year-on-year jump in wireless broadband revenues.

This growth can be partially attributed to the increase in 3G and 4G coverage, which has led to the launch of new products and services that meet the needs of customers, STC noted.

“We maintain an acute focus on reinforcing our presence in our home market while at the same time capitalising on opportunities for expansion both regionally and internationally,” said Khaled A Alghoneim, the STC group chief executive, said in the statement.

STC’s nine-month net profit was SAR6.88 billion, an increase of 28 percent from SAR5.39 billion in the corresponding period last year.

In a separate statement, STC said its board of directors adopted interim dividends for the third quarter amounting to SAR1 billion at the rate of SAR0.50 per share.