Saudi Telecom posts 20% drop in Q3 net profit

Saudi Telecom Co (STC) posted a 20 percent drop in third-quarter net profit, partly due to investments in overseas affiliates, missing analyst forecasts.

STC made 2.4 billion riyals ($640 million) in the three months to Sept. 30, down from 3.01 billion riyals a year earlier, the company said in a statement posted on the bourse website.

Three analysts, on average, had forecast a net profit of 3.04 billion riyals in a Reuters survey published earlier this month.

Nine-months earnings fell to 7.88 billion riyals, down 20 percent from a year ago, it said.

"The fall of the nine-month net profit is attributed to capital investments across the group, particularly in (units) in Turkey, India, Kuwait and Indonesia," the statement said.

The company's board proposed to distribute a dividend of 0.75 riyal per share for the third quarter.

Chief Executive Saud al-Duweish said in the statement that investments abroad aimed to expand the affiliates' market share and earnings, and that STC had maintained its leading position at home, including by attracting 20 million active mobile subscriptions in the country of about 25 million people.

Nine-months earnings per share fell to 3.94 riyals, down from 4.94 riyals a year ago, while three-month operating profit fell 32 percent from a year earlier to 3.11 billion riyals.

Nine-month operating revenue increased 7 percent to 37.75 billion riyals. (Reuters)

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