Saudi Telecom Co (STC), the Gulf’s No.2 telecom operator, reported a 73 percent rise in third-quarter profit on Tuesday, well above estimates, as the company cut costs.
The increase could help reassure investors after the former monopoly, which remains majority government-owned more than a decade since listing, announced surprise profit declines in the preceding three quarters due to writedowns on some of its foreign investments.
The firm made a net profit of SR3.39bn ($904million) in the three months to September 30, up from SR1.95bn in the prior-year period, according to a statement to the Saudi bourse.
Analysts polled by Reuters had on average forecast that STC – the second largest Gulf telecom operator by market value, with operations in the Gulf, Turkey, South Africa and Asia – would make a quarterly profit of SR2.12bn.
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