Saudi Telecom Co says net profit surges in Q4

Gulf's No 1 telco by market value says it made $965m during the three months to Dec 31
Saudi Telecom Co says net profit surges in Q4
By Reuters
Mon 20 Jan 2014 08:33 PM

Saudi Telecom Co (STC), the Gulf's No.1 telecom operator by market value, reported surging fourth-quarter profit on Monday after it changed its method of accounting for an Indian affiliate.

The company made a net profit of SR3.62 billion ($965 million) in the three months to December 31, up from SR393 million in the prior-year period, according to a bourse statement

STC's full-year profit was for 2013 was SR9.99 billion, up from SR7.28 billion a year earlier.

In December, STC changed its accounting method for its investment in India's Aircel Group, backdating this to the second quarter of 2013, the statement said.

This led STC, which remains majority government-owned more than a decade since listing, to reverse its share of losses from Aircel for the period of April to September 2013, which amounted to 795 million riyals, the statement added.

Shares in the company, which competes with Etihad Etisalat (Mobily) and Zain Saudi, have gained a third in value since October's third-quarter results.

The company's board of directors has recommended the company pay a fourth-quarter dividend of 0.75 riyals per share.

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