Saudi Telecom Company (STC) has published its financial results for the three months ended 31 March 2017, reporting a 21.3% increase in net profit to SAR2.5 billion (USD673 million) from SAR2.4 billion reported in the corresponding period of 2016. The company attributed the positive result mainly to a SAR334 million rise in other income, despite the SAR42 million year-on-year decrease in gross profit to SAR7.0 billion. In the period under review, STC reported revenues of SAR12.8 million, a 3.0% decrease y-o-y from SAR13.3 billion, while EBITDA reached SAR4.6 billion, down 4.0% from SAR4.8 billion.
STC Group’s CEO Khaled Biyari commented: ‘The financial results achieved for the first quarter of 2017 reflect the efforts being made to constantly evolve, improve and develop the company’s strategy and operations and achieve the best returns for the shareholders. Despite the various difficulties facing the sector, the company’s sponsored programmes contributed to improved operational efficiency and cost control leading to improved income and margins.’
In related news, STC has signed an agreement with the Ministry of Communications and IT (MCIT) and telecoms regulator the Communications and IT Commission (CITC) to provide high-speed fibre-optic services in the Kingdom of Saudi Arabia. Under the project, which is expected to cost roughly SAR7.3 billion, STC is aiming to connect 1.3 million housing units to the fibre-optic network by 2020.