It reported revenues for Q4, 2011 of SR15.25 billion compared to SR13.44 billion in Q4, 2010, an increase of 13 percent.
Quarterly results were enhanced by record revenues during the Haj season and the strong growth in demand for fixed and wireless broadband services, according to a press release.
Total revenues for 2011 rose to SR56.22 billion compared to SR51.79 billion for 2010, with an increase of 9 percent, concluding another successful year for STC.
Operating profit for 2011 reached SR11.27 billion compared to SR10.98 billion for 2010, an increase of 3 percent. Earnings before interest, Zakat and taxes, depreciation and amortization for 2011 reached SR20.12 billion compared to SR19.62 million for 2010, an increase of 3 percent.
Net profit for the fourth quarter reached SR2.28 billion compared to SR2.29 billion for the same period last year with a decrease of 0.3 percent and with an increase of 46 percent over Q3 net profit.
The net profit for the full year reached SR7.67 billion. This is a decrease of 19 percent from SR9.44 billion in 2010.
The decrease in net income for the 12 months (in spite of the 3 percent increase in operating profit) compared with the corresponding period last year, is attributed to losses from foreign currency exchange fluctuation amounting to around SR1.11 billion which was recorded in the consolidated financial statement for the year.
Also, there was an amount of SR728 million recorded in the third quarter of last year 2010 which represents gains from the sale of fixed assets (Towers) to Aircel in India
In light of the company’s robust quarterly performance, STC’s board of directors recommended on Wednesday an initial dividend of SR1.00 billion for the fourth quarter of 2011. The dividend dates will be announced later
STC Group CEO Saud Al-Daweesh, said: “STC continues to strengthen its leading position as one of the region’s largest telecommunications service providers by offering integrated fixed and mobile innovative services for both individuals and businesses. This comes as the company continues to achieve a distinct and sustainable financial and operational performance. The latest acquisitions recently concluded by the group would undoubtedly enhance the investors’ confidence in conjunction with the latest growth levels reported locally and internationally and come in line with the group’s distinctive strategy.”
Al-Daweesh added: “It has been an honor for us at STC to provide pilgrims with effective and high quality services that surpass international standards supported by our advanced infrastructure that the company continuously upgrades.”
Locally, revenues from wireless broadband services in Q4, 2011 increased by 126 percent over the same period of 2010, while total revenues from wireless broadband in 2011 surged by 131 percent year on year.
This comes as a result of the company’s deployment of its most advanced 4G networks to provide high speed wireless Internet of up to 100 Mb/s in 7 major cities during the first phase, in addition to providing speeds of up to 42 Mb/s to advance the current 3G networks.
STC’s 3G networks now cover 92 percent of populated areas and highways, an increase of 50 percent over the previous year.
