STC reports largest profits drop for four years

18 Apr 2007

Saudi Telecom Company (STC) has reported a 20.5% drop in first-quarter net profit to SAR2.72 billion (USD725.6 million). This is STC’s lowest quarterly profit since December 2004 and the largest year-on-year fall in more than four years, Reuters reports. The decrease was blamed on a decline in revenues, which fell 2.3% to SAR8.32 billion due to ‘reductions and the big promotions that the company offered its customers’ STC said in a statement. Although the promotions hit sales figures they did succeed in winning new users, with subscriber numbers rising 18% on the March 2006 figure; actual customer numbers were not disclosed.

Saudi Arabia, Saudi Telecom Company (stc)