RIYADH, 16 July 2005 — Saudi Telecommunications Co. (STC) said on Thursday that its first-half net profit rose 15 percent to SR5.91 billion ($1.58 billion). Second-quarter net profit increased 10 percent to SR2.90 billion over the same period last year, the company said in a statement posted on the Saudi stock market website. First-half operating income reached SR15.96 billion, an increase of 7 percent. The company decided to issue a SR14 first-half dividend worth SR4.2 billion on Aug. 6 - up from SR12 last year.
The announcement was made after the market closed for the week, with STC shares last trading down 1.66 percent at SR889.5. The company is the Kingdom’s second largest listed firm in terms of market capitalization. The majority state-owned firm has a monopoly on fixed lines but faces competition for the first time this year in mobile phones. Recently launched rival Etihad Etisalat (Mobily) aims to make inroads into Saudi Arabia’s rapidly growing telecommunications market, the largest in the Gulf.