Saudi Telecom Co's (STC) has announced its fourth-quarter financial results with its profit drooping 32.6%.
These figures are the result of a property deal with the government that failed to make up higher expenses and losses on investments, as Reuters reports. STC said a 19% year-on-year rise in expenses was behind the fall.
The operator made a net profit of 2.44 billion riyals ($649.8 million) in the three months to Dec. 31, down from 3.62 billion riyals in the prior-year period.
Quarterly revenue was also 5.2 percent up year on year at 11.85 billion riyals.
It also booked a separate 164 million riyal loss because of an accounting method change for its investment in India's Aircel Group. The Aircel accounting change was behind a nine-fold year-on-year profit growth recorded in the same quarter of 2013.
STC’s reported loses are worth 595 million riyals, which are booked as compensation for expropriated land and buildings in an upmarket area of Riyadh.