STC 4Q net profit up 154%; Zain report losses

20 Jan 2010

Saudi Telecom Company (STC) has reported a 154% rise in net profit for the three months ended 31 December 2009, Reuters reports. The operator, the Kingdom’s fixed line incumbent and leading mobile and broadband provider by subscribers, made SAR2.94 billion (USD784 million) in the fourth quarter of 2009, up from SAR1.16 billion a year earlier. The growth has been emphasised as 4Q08 net profit was hit by foreign currency fluctuations while the global financial crisis took hold, knocking net profit for the period down 62% year-on-year. According to TeleGeography’s GlobalComms Database, STC reported net profit of SAR3.06 billion in the final three months of 2007. Furthermore, STC revealed that its results were boosted by the sale of a 25% stake in Malaysian operator Maxis, which raised SAR684 million for the company’s coffers. Fourth quarter 2009 operating profit declined 8.2% year-on-year, to SAR2.59 billion.

Meanwhile, Zain Saudi Arabia announced a net loss of SAR657 million for the three months ended 31 December 2009. Operating losses declined 44.3% to SAR436 million in the same period. However, company losses have contracted by over 29% year-on-year as revenues rise and Zain, which launched in Saudi Arabia in August 2008, establishes itself in the market. Fourth quarter revenues jumped by 110.6%, up to SAR895 million.

Saudi Arabia, Saudi Telecom Company (stc), Zain Saudi Arabia