Saudi Telecom Co's Q3 net profit slumps 53%

Saudi telco says net income decline due to forex fluctuation losses of SR780m
Saudi Telecom Co's Q3 net profit slumps 53%
A visitor takes pictures with his mobile phone as he stands next to an artwork to be auctioned off by Sothebys at Arts of the Islamic World during a preview exhibition at a hotel in Doha
By Andy Sambidge
Wed 19 Oct 2011 06:06 PM

Saudi Telecom Company said on Wednesday that net profit for the third quarter fell 53 percent compared to the same period in 2010.

Net income amounted to SR1.562bn compared to SR3.317bn for the corresponding quarter last year, and was 31 percent down on the previous quarter.

The company said in a statement that the decrease in net income was partly attributed to foreign currency exchange fluctuations losses of SR780m.

It added that it also made a provision of SR134m while the Q3 2010 figure included an amount of SR728m from the sale of fixed assets towers to AIRCEL in India.

Net income for the nine months to the end of September amounted to SR5.392bn compared to SR7.151bn for the corresponding period last year, a decrease of 25 percent.

The telco said revenue from services for the third quarter amounted to SR14.015bn, up six percent on the year earlier period.

Saud Al-Daweesh, STC Group CEO, said the revenue increase was seen in both local and international operations.

He added that fixed broadband customers increased by 27 percent in the third quarter compared to the same period last year while mobile broadband revenue increased by 151 percent as a result to the growth of data traffic and higher number of mobile broadband customers.

He said STC units operating in Bahrain, Kuwait, Malaysia, Indonesia had all seen strong performance.

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