STC reports 21% slump in profits to USD619m in 3Q15

21 Oct 2015

Saudi Telecom Company (STC) has published its financial results for the three months ended 30 September 2015, reporting a 31.1% decrease in net profit to SAR2.322 billion (USD619.2 million) from SAR3.372 billion reported in Q3 2014. The company attributed the negative result mainly to a SAR1.137 billion year-on-year increase in cost of services, and a SAR505 million increase in operating expenses. In the period under review, STC reported revenues of SAR12.895 million, a 9.7% increase y-o-y on the SAR billion booked in 3Q14. EBITDA however decreased in the three months to end-September 2015, to SAR4.958 billion, down 8.4% from SAR5.410 billion.

In operational terms, the company disclosed that its fibre-optic subscriber base increased 21% year-on-year, supported by the operator’s ongoing fibre-to-the-home (FTTH) and fibre-to-the-business (FTTB) deployments, while its mobile subscriber base increased 5% by 3Q15.

STC Group’s CEO Khaled Biyari commented: ‘STC will continue to invest in infrastructure, advanced networks and new technologies which will enable us to reach new levels of customers’ satisfaction and enrich our customers’ experience. Currently, the telecom sector is going through a major transformation phase, and the conversations that are taking place are about integrated ICT providers, Cloud computing, Internet of Things, and other hot topics. STC’s strategy will enable us to lead this transformation phase, and to reposition the company in order to accommodate and address all variables and developments for the purpose of meeting our customer’s aspirations.’

Meanwhile, MVNO Virgin Saudi Arabia – which launched services in the country over STC’s network on 30 September 2014 – has revealed that it has signed up one million users since its launch, Zawya reports.

Saudi Arabia, Saudi Telecom Company (stc), Virgin Mobile Saudi Arabia