JEDDAH, 18 July 2003 — Saudi Telecom Company (STC) yesterday reported a 218 percent rise in net profits for the first six months of 2003, although income fell in the second quarter.
The company said it posted $1.106 billion profits on June 30, compared to $348 million in the same period of 2002.
Profits in the first half of 2002 were hit by spending of $285.3 million on an early retirement scheme, Saudi Telecom said in a statement quoted by AFP.
Net profits in the second quarter reached $503.5 million, compared to $602.4 million in the first quarter of this year, a drop of 16.4 percent.
The decline in profits was attributed to a major cut in charges ahead of the opening of the telecommunication sector to competition in late 2004. The cuts took effect in the second quarter.
Operational revenues reached $3.466 billion up to June 30, compared to $3 billion in the same period of 2002, an increase of 15.5 percent, the company said.
The government last year sold 30 percent of the company’s shares to private citizens for just over $4 billion.
