Saudi Telecom Co's Q2 net profit almost doubles

Gulf's biggest telco reports 96% surge in second quarter profit to $747m
Saudi Telecom Co's Q2 net profit almost doubles
By Reuters
Mon 21 Jul 2014 01:08 PM

Saudi Telecom Co (STC), the Gulf's biggest telecommunications operator by market value, reported a 96 percent surge in second-quarter profit on Monday, beating analysts' estimates because of a change in the valuation of an Asian divestment.

The firm, which competes domestically with Etihad Etisalat (Mobily) and Zain Saudi, made a net profit of SR2.80 billion ($747 million) in the three months to June 30, up from SR1.43 billion in the prior-year period.

Analysts polled by Reuters had on average forecast STC, which own stakes in operators in the Gulf, Turkey, South Africa and Asia, would make a quarterly profit of SR2.65 billion.

The group changed the valuation of last year's sale of a majority stake in Indonesia's Axis from a SR598 million loss to a SR41 million gain, resulting in the second-quarter net profit rise, it said.

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