JEDDAH, 15 April 2005 — Saudi Telecom has made a net profit of SR3.011 billion in the first quarter of this year, according to Abdullah ibn Omar Bajabae, acting president of the company. He said the amount was 20 percent higher than the profit gained by STC during the same period last year,” the Saudi Press Agency quoted him as saying.
Last year, STC raised its profit by 9.3 percent in 2004 to SR9.3 billion ($2.48 billion) by increasing its customer base and cutting operating costs. The company saw an 11.7 percent growth in revenues and a slower 8.4 percent growth in the cost of goods sold in 2004. The Saudi telecom giant’s operation revenues rose to SR7.918 billion in the first quarter of 2005 compared to SR7.32 billion last year, registering a growth rate of eight percent.
Bajabae expressed his satisfaction over the “excellent” first quarter results and hoped the company would continue its good financial performance throughout the year, making good profits. He praised the good relations between STC and its clients and pledged to offer them better services.
STC cut its service charges recently to lure customers before the arrival of the second mobile operator, UAE telecom giant Etisalat. It canceled the annual fee of SR100 for international roaming and the SR100 charge for upgrading pre-paid SAWA service to ordinary mobile. It also cut by half the charge for changing or reissuing Aljawal chips as well as mobile installation from SR100 to SR50. The company reduced the monthly subscription charge for WAP and DATA services from SR20 to just SR4.
The company had earlier reduced charges for local and international calls through land-line phones. Call charges to some countries were brought down by as much as 44 percent. Charges for calls to India, Pakistan, Bangladesh, Philippines, Nepal and Yemen, which account for the largest number of expatriates in the Kingdom, have been substantially reduced.
STC has plans to provide more quality services and incentives to its customers. This policy has led the subscription of landline phones to soar beyond 3.4 million lines. It has spread its landline network to reach all areas in the Kingdom, including remote areas. “STC’s financial results continued to grow as a result of its better and quality services,” the acting president said. He noted the company’s state-of-the-art facilities.
