RIYADH, 18 April 2006 — Saudi Telecom (STC), the Kingdom’s second-largest listed firm, posted a first-quarter net profit of SR3.415 billion ($910.7 million) yesterday, up 13.4 percent from the same 2005 period.
Operating income was SR8.515 billion, a rise of 7.5 percent, Saudi Arabia’s main telecom operator said in a statement.
STC faces competition this year in the mobile phone sector from newcomer Ettihad Etisalat (Mobily), which started in May. STC said it would pay a dividend of SR1.25 or a total SR2.5 billion for the first quarter. Shares in the company, which has a monopoly on fixed lines, fell 2 percent in early trade yesterday after the results were announced.