STC posts 38.5% fall in first quarter profit

22 Apr 2013

The Gulf region’s second largest telecom operator by revenues, Saudi Telecom (STC), has posted a net profit of SAR1.55 billion (USD413 million) for the three months to 31 March 2013, down from SAR2.52 billion a year earlier, although its quarterly service revenue rose to SAR11.5 billion from SAR11.1 billion previously. The company was expected to record profit of SAR2 billion in its latest reporting period, but missed market forecasts by a wide margin. STC attributed the fail in net income to a non-cash charge of SAR500 million of its Indian affiliate, Aircel. The Saudi company, still majority government-owned nearly a decade after being listed, announced in a separate statement that it will distribute first-quarter dividends of SAR0.5 per share.

Saudi Arabia, Aircel, Saudi Telecom Company (stc)