Saudi Telecom Company (STC) has posted a net profit of SAR4.241 billion (USD1.13 billion) for the six months ended 30 June 2016, a decrease of 16.2% from SAR5.062 billion in the year-ago period. STC attributed the decline in net profit to a rise in cost of services and a SAR616 million increase in operating expenses during H1 2016, which was mainly due to: a SAR138 million decrease in selling and marketing expenses compared to 1H15, a SAR357 million increase in general and administrative expenses, and a SAR397 million increase in depreciation and amortisation.
Gross profit for the six-month period totalled SAR14.582 billion, down marginally 0.9% from SAR14.708 billion in the corresponding period of 2015. Revenue from services rose 6.6% year-on-year in the first six months of 2016 to reach SAR26.335 billion, while EBITDA amounted to SAR9.608 billion, a decrease of 3.5% from SAR9.953 billion the previous year.
STC Group CEO Khaled Bin Hussain Biyari stated: STC’s revenues from services for the second quarter increased 11% and gross profit for the same period increased 3% compared to the comparable period last year. Therefore, we assure that STC will continue to expand its fixed and mobile networks and will continue to invest in its infrastructure to introduce new technologies for our individual, residential and business customers in order to reach the highest levels of customer satisfaction and enrich our customer’s experience. These investments will support STC strategic role in achieving sustainable growth, enabling government institutions and private sector transformation to the digital economy in connection with the recently announced major national transformation programme and Saudi Vision 2030 which will bring about important developmental changes in all vital sectors of our country.’