STC’s losses widen in 3Q16 due to biometric registration process

20 Oct 2016

Saudi Telecom Company (STC) has published its financial results for the three months ended 30 September 2016, reporting a 7.5% decrease in net profit to SAR2.148 billion (USD572.4 million) from SAR2.322 billion reported in Q3 2015. The company attributed the negative result mainly to a SAR1.160 billion year-on-year increase in cost of services (due to the government’s biometric registration process), and a SAR120 million increase in operating expenses. In the period under review, STC reported revenues of SAR13.498 billion, a 4.7% increase y-o-y on the SAR12.895 billion booked in 3Q15. EBITDA however decreased in the three months to end-September 2016, to SAR4.346 billion, down 12.3% from SAR4.958 billion.

In operational terms, the company disclosed that its fibre-optic subscriber base increased 33% year-on-year, supported by the operator’s ongoing fibre-to-the-home (FTTH) deployments, while its fixed broadband subscriber base increased 3% by 3Q16.

Saudi Arabia, Saudi Telecom Company (stc)