STC's Q4 net income hit by one-time charges

21 Jan 2013

Saudi Telecom Company (STC) has posted revenue of SAR15 billion (USD3.99 billion) for the fourth quarter of 2012, down 1.7% year-on-year. Net income, however, slipped 79% to SAR468 million after the company adjusted the fair value on its investments in South Africa’s Cell C and India’s Aircel, leading to a one-time non-cash charge of SAR641 million. The company’s bottom line was also hit by a charge of SAR544 million following regulatory changes within the Indian telecoms sector. More encouragingly for the company, STC reported soaring demand for broadband services, with bundled packages designed to claw back customers from rival operators Mobily and Zain proving particularly successful.

Saudi Arabia, Saudi Telecom Company (stc)