The Saudi Telecom Company (STC) has reported revenues of SAR3.32 billion (USD885 million) for the three months ended 30 September 2010. This figure represents an increase of 38.3% compared to the SAR2.4 billion generated during the same period one year earlier. The figure reportedly represents STC’s highest quarterly net earnings since the second quarter of 2006. STC claims that the rise in net profit stems from the realisation of gains from the sale of Al-Jawal Network Towers to Aircel of India for SAR728 million. Excluding this gain, net profit rose 7.7% year-on-year.
STC has reported operating income of SAR3.26 billion, a rise of 5%; income fell 27% in the Q2 2010, to SAR2.35 billion. The company has suggested that increased third quarter earnings are down to widespread telecoms use during Ramadan and the summer holidays. However, nine-month operating income fell 22% to SAR7.95 billion. STC has spent approximately USD7 billion since 2007 in an effort to aggressively strengthen its foreign presence, notably in Asia and the Middle East. The foreign expansion is designed to counter increased competition in the domestic market that STC previously monopolised.