Saudi Telecom net income drops 27.1%

Updated 26 July 2016
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Saudi Telecom net income drops 27.1%

DUBAI: Saudi Telecom Co. (STC) missed estimates as it reported a 27.1 percent fall in second-quarter profit on Tuesday, extending an earnings slump as operating expenses rose.
STC had reported falling profits in six of the preceding seven quarters, stalling an improvement in its bottom line that had been sparked by the operator trimming its international ambitions and refocusing on its lucrative home market.
That slump continued in the second quarter as the former monopoly made a net profit of SR1.87 billion ($499 million) in the three months to June 30, compared with a profit of SR2.56 billion in the prior-year period, according to a bourse statement.
Four analysts polled by Reuters had on average forecast STC, which owns stakes in operators in the Gulf, Turkey and Asia, would make a quarterly profit of SR2.37 billion.
Explaining the poorer performance, it cited a SR563 million increase in operating expenses as sales and marketing costs, as well as general and administrative expenses, rose. Depreciation and amortization costs also rose.
Profits were also dragged down by the company booking SR278 million in losses from investments, compared with gains of 7 million the previous year.


Twitter triples first-quarter profit to $191 million

Updated 14 min 39 sec ago
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Twitter triples first-quarter profit to $191 million

  • Profits in the first quarter hit $191 million, compared with $61 million a year earlier
  • The longstanding metric of monthly active users was 330 million in the January-March period

WASHINGTON: Twitter said Tuesday its profits tripled in the past quarter even as it ramped up efforts to root out abuse and misconduct on its short messaging platform.
Profits in the first quarter hit $191 million, compared with $61 million a year earlier, while revenues increased 18 percent to $787 million.
Twitter’s global user base appeared to show modest growth even as the company transitions to a different way of measuring it.
The longstanding metric of monthly active users was 330 million in the January-March period, an increase of nine million from the past quarter but down slightly from a year ago.
But Twitter no longer will use that measure, switching instead to “monetizable” daily active users — 134 million in the past quarter, up from 120 million last year.
Chief executive Jack Dorsey said Twitter is benefiting from its moves to root out abusive and inauthentic content that had hurt Twitter’s reputation.
“We are taking a more proactive approach to reducing abuse and its effects on Twitter,” said Dorsey.
“We are reducing the burden on victims and, where possible, taking action before abuse is reported.”
He added that Twitter aims to become “more conversational” and has launched a prototype for a new app called “twttr,” with the goal of “making conversation on Twitter feel faster, more fluid and more fun.”