Saudi Telecom Q4 profit plunges 79pc
Jeddah, January 21, 2013
Saudi Telecom Company (STC), the Gulf's No.1 telecom operator, reported a 79-per cent fall in fourth-quarter profit on Monday, missing market expectations, after it took one-time charges related to affiliates in South Africa and India.
STC, which is majority government-owned, made a net profit of SR468 million ($124.8 million) in the three months to December 31, down from a SR2.28 billion in the prior-year period.
Analysts polled by Reuters on average forecast STC - the largest Gulf telecom operator by market value, with operations across the Muslim world from Indonesia to Turkey - would make a quarterly profit of SR2.4 billion.
The former monopoly attributed the fall in net profit to charges on adjusting the fair value on its investment in South Africa's Cell C and Aircel in India - leading to a one-off non-cash charge of SR641 million - and changes in Indian telecom regulations which resulted in a charge of SR544 million, related to Aircel.
Quarterly operating income fell 32.5 per cent to SR1.9 billion.
Revenue from services for the fourth quarter fell 1.7 per cent to SR15 billion compared with SR15.2 billion for the corresponding quarter last year.
Full-year profit for 2012 was SR7.4 billions, down from SR7.7 billion in 2011.
Soaring demand for broadband has lifted earnings in recent quarters, with STC offering bundle packages to woo customers back from rival operators Etihad Etisalat (Mobily) - an affiliate of UAE operator Etisalat, and Zain Saudi - part-owned by Kuwaiti group Zain.
STC said in a separate statement that it would issue a 0.5 riyal per share dividend for the fourth quarter. Shares in STC closed at SR44 on Sunday.-Reuters
Tags: Saudi Telecom Company |
More IT & Telecommunications Stories
- Du joins new global cable consortium
- Kuwait moves to create telecoms watchdog
- Batelco backs Royal Fund for Martyrs
- Egypt's Global Telecom posts $749m Q4 loss
- Red Hat launches open source BPM suite
- Batelco announces new board
- Batelco offers improved broadband
- You don't own phone numbers, warns TRA
- Tech giants back top Qatar ICT event
- Du to provide wifi access in public areas
- Zain finalises $800m, five-year loan facility
- Ooredoo Q4 net profit falls 36pc to $140m
- Mobily, Etisalat team up for LTE roaming
- Batelco approves $84m dividends for 2013
- Etisalat Q4 profit rises 70pc to $394m
- Kenya telecom firm to join Etisalat SmartHub
- Aruba appoints new sales director
- Du enters $1.17 billion financing deals
- VIVA extends 4G LTE offer
- Batelco to update students with latest technologies
- Etisalat SmartHub seals IPX agreement
- Etisalat picks Alcatel for LTE network expansion
- Boeing, QCRI host machine learning forum
- Mobily provides 4G LTE international roaming
- Viva Kuwait, Huawei to set up innovation centre
- Etisalat, Airtel deal to boost network services
- Batelco offers 4G LTE backup solution
- Arbor unveils ‘Peakflow’ solution
- Etisalat launches enterprise mobility services
- STC launches advanced 4G network