STC Q2 profits rise 9%; Zain Saudi posts loss of SAR448 million

21 Jul 2011

According to Reuters, Saudi Telecom Company (STC) has reported a net profit of SAR2.26 billion (USD601.5 million) for the three months ending 30 June 2011, up 9% from the figure of SAR2.06 billion generated during the same period one year earlier. The figure was included in a statement posted on the local bourse website; it did not give financial details of income from operations abroad. An accompanying statement read: ‘The increase in net income is attributed to a strong growth in revenues from domestic fixed and mobile broadband and content services, in addition to higher revenues from international operations’.

Meanwhile, Reuters reports that Zain Saudi Arabia posted a net loss of SAR448 million for the three month period in question, down from a loss of SAR632 million in the year-ago period. Once again, the figures were derived from a bourse statement. Zain Saudi Arabia’s statement explained: ‘The decreased net losses in the second quarter of 2011 was due to the company’s success in growing its customer base, which exceeded nine million in less than three years of the launch of operations in Saudi Arabia’.

Finally, Reuters notes that Etihad Etisalat (Mobily) posted a profit of SAR1.16 billion for the three months ended 30 June 2011, up from SAR901 million one year earlier. Mobily CEO Khaled al-Kaf told Reuters: ‘There is huge pressure on international calls, also competition on data – data package prices and bundle prices have dropped in the last six months in Saudi Arabia. There is an impact on margin, but I think we will have double-digit revenue and profit [growth] for some time’. Al-Kaf added that data revenue rose 46% during the first six months of 2011, and now accounts for one fifth of the carrier’s revenue. Mobily’s revenue growth was down to ‘higher minutes of usage, data transmission and an increase in smartphone sales,’ the CEO said.