Saudi Telecom Company (STC) has published its financial results for the twelve months ended 31 December 2015, reporting a 14.82% decrease in net profit to SAR9.335 billion (USD2.48 billion) from SAR10.959 billion reported in 2014. The company attributed the negative result mainly to a SAR2.823 billion rise in cost of services and a SAR1.883 billion increase in operating expenses in the year, despite the 7.77% year-on-year growth in gross profit to SAR30.343 billion. In the period under review, STC reported revenues of SAR50.837 million, a 10.93% increase y-o-y, while EBITDA reached SAR19.370 billion, up 3.80% from SAR18.661 billion.
STC Group’s CEO Khaled Biyari commented: ‘The 11% increase in consolidated revenue and the 3.8% increase in EBITDA for the twelve-month period compared to last year confirm that STC’s strategy is working well. The decline in net profit for the twelve months is mainly attributed to STC continued investments in programs that will have positive outcomes in the near future, such as the early retirement program and the disposal of old assets … With regards to international operations, the twelve-month period witnessed revenue growth of 8% in the controlled international subsidiaries compared to last year and this is attributed mainly to the continued growth in the subsidiaries’ customer bases and market shares.’