Saudi Telecom Company (STC) has published its financial results for the twelve months ended 30 December 2017, reporting a 14% increase in net profit to SAR10.2 billion (USD2.7 billion) from SAR8.9 billion reported in 2016. The company attributed the positive result mainly to a SAR3.2 billion decrease in cost of revenues, coupled with the SAR285 million year-on-year decrease in operating expenses. In the period under review, STC reported revenues of SAR51.4 billion, a 4.3% decrease y-o-y from SAR53.7 billion, while EBITDA reached SAR19.3 billion, up 7.1% from SAR18.0 billion.
STC Group’s CEO Khaled Biyari commented: ‘The 2017 year-end revenue from services has decreased by 4.3% for the twelve-month period compared to the comparable period last year. This is mainly attributable to the decline in consumer sector performance due to challenging economic conditions and regulatory environment, for example lifting the ban on VoIP [services] that significantly affected the international calls revenue. However, the impact of voice decline on the overall group’s revenue was significantly offset by the strong growth of data revenue. Furthermore, [fibre-to-the-home] FTTH customer base in Q4 2017 increased by 5.1% and 20% as compared to Q3 2017 and Q4 2016, respectively.’