STC reports another fall in profit

18 Jul 2007

Saudi Telecom Company (STC) has reported an 8.6% drop in second quarter net profit to SAR3.1 billion (USD826.6 million), while sales fell 0.5% to SAR8.44 billion. The results mark the fourth consecutive fall in quarterly net profit as the telco continues to face growing competition in the cellular market from Mobily, which launched two years ago. A third cellular operator and three new wireline licensees are also lining up to launch their first services, creating more headaches for the incumbent. One bright spot was that the decline in profit has slowed from the previous quarter; in the three months to the end of March STC reported net income of SAR2.72 billion, down 20.5% year-on-year according to a report from Reuters.

Saudi Arabia, Saudi Telecom Company (stc)