STC Q3 profit up 25%, misses forecast

Gulf's largest telecom operator benefits from increase of growth in broadband, business services
STC Q3 profit up 25%, misses forecast
Saudi Telecom Company (STC), the Gulfs number one telecom operator, reported a 25 percent jump in third-quarter profit.
By Reuters
Sun 21 Oct 2012 10:05 AM

Saudi Telecom Company (STC), the Gulf's number one telecom operator, reported a 25 percent jump in third-quarter profit, missing market expectations.

The increase in net profit was because of growth in broadband and business sector services as well as higher revenue from international operations, Saudi Telecom said on Saturday.

The former monopoly made a net profit of SAR1.95bn (US$520m) in the three months to September 30, compared with a forecast for SAR2.42bn in a Reuters poll.

Operating income rose 0.5 percent to SAR3.02bn and revenue from services increased 8 percent to SAR15.1bn.

It will pay a dividend of SAR0.50 per share, totalling SAR1bn, out of third-quarter profit.

Soaring demand for broadband has lifted earnings in recent quarters, with STC offering bundle packages to woo customers back from rival operators Etihad Etisalat (Mobily) - an affiliate of UAE operator Etisalat, and Zain Saudi - part-owned by Kuwaiti group Zain.

STC, which remains majority government-owned company nearly a decade after bring listed, is the largest Gulf telecom operator by market value, with operations across the Muslim world from Indonesia to Turkey.

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