Profits soar at STC

13 Feb 2004

Saudi Telecom (STC) has reported a 140% hike in net profits for 2003 on the back of falling operating costs and a surge in subscribers. The operator, which is 70% owned by the government, said net income last year reached SAR8.5 billion (USD2.26 billion), compared to SAR3.5 billion in 2002, on total revenues of SAR27 billion (SAR23.3 billion). STC made the impressive gains despite implementing mobile tariff cuts under instruction from the Saudi Telecommunications Commission, and spending SAR700 million on upgrading its GSM network.