Complex Made Simple

STC reports 35 percent net income growth for 9 months period

Saudi Telecom Company (STC) announced the company’s preliminary financial results for the period ending at 30 September 2014 (9 months).

After adjusting all comparable numbers, net profit for the 3rd quarter reached SR 3,372m, an increase of 20 percent compared to the immediately prior quarter.

These financial results for the period has lead the Board of Directors to approve the distribution of a total of SR 2,000 million in cash dividend for Q3 2014, representing SR 1 per share.

Commenting on the results, STC Group chairman and managing director, Mr. Abdulaziz Alsugair, stated: “The strong financial results achieved during the third quarter and the 9 months period reflects the efforts being made to constantly evolve, improve and develop the company’s strategy both domestically and internationally. Despite all challenges and developments in the countries where we operate, STC managed to achieve continuous and consistent growth in acquiring market share.”

Mr. Alsugair also stated, “With the important role of the telecommunications sector in transitioning the country to a digital society, STC continues to play a major role in bringing the latest technology and services to our clients. This will improve & enhance STC position domestically and will positively impact the future performance of the company, generating higher returns to the shareholders.”

With regards to international operations, the 9 months period witnessed revenue growth of 18 percent in the controlled international subsidiaries compared to same period last year. This is mainly attributed to the continuous growth in VIVA Bahrain & VIVA Kuwait customer base and market shares during the third quarter.

Domestically, during the 3rd quarter STC introduced new value added services and customized offers with the appropriate smart phones that encourages mobile usage for both post-paid and pre-paid “SAWA” subscribers.

In 3rd quarter, we continued to see a huge increase in data traffic over the 4G network, and as a result wireless broadband revenue increased 22 percent during the 3rd quarter compared to same period last year and 16 percent compared to the immediate prior quarter. STC will continue with deploying 4G network as the coverage at the end of Q3 exceeded 85 percent of populated areas.

STC’s continues with the deployment of the fiber optic network for both business and residential. “FTTH” customers increased 30 percent during the 3rd quarter compared to the same period last year.

Enterprise business unit overall revenues increased 7 percent during the quarter compared to same period last year, driven by the 24 percent increase in Business sector Data circuits services revenues.