Saudi Telecom Company (STC) has published its financial results for the three months ended 31 March 2018, reporting a 2.1% increase in net profit to SAR2.59 billion (USD690 million) from SAR2.54 billion reported in 1Q17. The company attributed the positive result mainly to a SAR211 million decrease in the cost of revenues, coupled with the SAR224 million year-on-year increase in other income. In the period under review, STC reported revenues of SAR12.39 billion, a 1.1% y-oy decline from SAR12.52 billion, while EBITDA reached SAR4.64 billion, up 2.1% from SAR4.55 billion.
STC Group’s acting CEO Nasser S. Alnasser said that the increase in net income was a result of the continued comprehensive program to improve operational efficiency and cost optimisation initiatives, while noting that the overall telecoms market landscape, particularly with respect to consumer business segment, remains challenging amid economic and regulatory changes that are taking place. He highlighted that despite that, STC has been able to sustain its market share over the past years as a result of creative product offering and revenue initiatives.