STC, Mobily see profits rise

21 Apr 2008

Saudi Telecom Company (STC) has reported an 11.4% rise in net profit for the first quarter of this year to SAR3.02 billion (USD805 million). Operating income was up 16% year-on-year at SAR3.39 billion. Saudi Arabia’s dominant telco has attributed the increases to improved revenues and strong customer take-up in the mobile and broadband sectors.

Meanwhile, STC’s sole competitor in the Saudi cellular market has also posted first-quarter financial growth. Etihad Etisalat, which trades as Mobily, said revenues for the three months to the end of March rose 23% to SAR2.31 billion, while net profits were up 30% at SAR86.9 million. The Kingdom is set to get its third national mobile operator later this year with the launch of Saudi Zain, which is backed by Kuwait’s Zain Group.

Saudi Arabia, Mobily (Etihad Etisalat), Saudi Telecom Company (stc)