In a series of announcements to the Saudi bourse, the Kingdom’s three mobile operators have announced their respective financial results for the three-month period ended 31 December 2011, Reuters reports. Saudi Telecom Company (STC) has reported a net profit of SAR2.28 billion (USD607.9 million) for the October-December quarter, down 0.3% from the figure of SAR2.28 billion generated during the same period one year earlier. Further, STC reported a 19% decrease in net income for FY2011, down to SAR7.7 billion; the telco attributed the drop in earnings to ‘foreign currency exchange fluctuation losses amounting to approximately SAR1.1 billion’.
Meanwhile, Zain Saudi Arabia posted a net loss of SAR461 million for the three months under review, down from a loss of SAR521 million in the year-ago period. The cellco credited the 11% narrowing of its losses to lower international network call charges and reduced maintenance costs. However, Reuters notes that the latest quarterly results take Zain Saudi Arabia’s accumulated losses to around SAR9.6 billion, which amounts to around two-thirds of the company’s SAR14 billion of share capital. Local bourse rules stipulate that listed firms must reduce their capital if losses exceed 75%. Meanwhile, Zain reported that its full-year revenue reached SAR6.7 billion, up 13% from SAR5.9 billion in FY2010.
Finally, Etihad Etisalat (Mobily) posted a net profit of SAR1.7 billion for the three months ended 31 December 2011, up 16% from SAR1.46 million one year earlier. Mobily attributed the growth to data revenues, which rose 59% in 2011; data accounted for 22% of Mobily’s total revenue last year, up from 18% in 2010.