STC's Q3 net profit slumps 53%

Saudi telco says net income decline due to forex fluctuation losses of SR780 mn.
STC's group CEO Al-Daweesh said that the revenue from services during the third quarter saw an increase in both local and international operations.
STC's group CEO Al-Daweesh said that the revenue from services during the third quarter saw an increase in both local and international operations.

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Saudi Arabian telco STC said that the net profit for the third quarter fell 53% compared to the same period in 2010.

Net income amounted to SR1.562 billion compared to SR3.317 billion for the corresponding quarter last year, and was 31% down on the previous quarter.

The company said in a statement that the decrease in net income was partly attributed to foreign currency exchange fluctuations losses of SR780 million.

It added that it also made a provision of SR134 million while the Q3 2010 figure included an amount of SR728 million from the sale of fixed assets towers to AIRCEL in India.

Net income for the nine months to the end of September amounted to SR5.392 billion compared to SR7.151 billion for the corresponding period last year, a decrease of 25%.

The telco said that its revenue from services for the third quarter amounted to SR14.015 billion, up 6% on the year earlier period.

Saud Al-Daweesh, STC Group CEO, said the revenue increase was seen in both local and international operations.

He added that fixed broadband customers increased by 27% in the third quarter compared to the same period last year, while mobile broadband revenue increased by 151% as a result to the growth of data traffic and higher number of mobile broadband customers.

He said that STC units operating in Bahrain, Kuwait, Malaysia, Indonesia had all seen strong performances.

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