STC net income rises 25%

Saudi Telecom Company (STC) yesterday announced the company's preliminary consolidated financial results for the period ending at Sept. 30 (9 months). Revenues for the 9 months reached SR 44.38 billion with an increase of 8 percent compared to same period last year.
Net Income for the 9 months reached SR 6.88 billion with an increase of 28 percent compared to same period last year. EBITDA for the 9 months grew by 6 percent compared to same period last year.
Earnings per share for the 9 months reached SR 3.44 compared to SR 2.70 for the corresponding period last year. Wireless broadband revenue in Q3 grew by 68 percent compared to Q3, 2011.
STC continues delivering strong revenue growth domestically and internationally. For Q3, 2012, the company reported 8 percent increase in consolidated revenues reaching SR 15.15 billion compared to SR 14.02 billion in Q3, 2011.
As a result of the increase in revenues from all services and the enhancement in the operations efficiency domestically, operating income for the 3rd quarter increased by 0.5 percent to reach SR 3.02 billion compared to SR 3.00 billion for the same period in 2011. For the 9 months, operating income increased 11 percent reaching SR 9.35 billion. Earnings before interest, Zakat and taxes, depreciation and amortization (EBITDA) for Q3, 2012 increased 1 percent reaching SR 5.25 billion compared to same period last year.
STC reported a 25 percent increase in net income for Q3, 2012 to reach SR 1.95 billion compared to Q3 2011, and reached SR 6.88 billion for the 9 months period with an increase of 28 percent compared to the same period last year. While net income decrease by 19 percent compared to the previous quarter despite the 4 percent increase in Q3 consolidated revenue compared to Q2, is attributed to the increase in operating expenses in our international operations in Q3.
The continued strong company performance and commitment to delivering shareholder value has lead the board of directors to approve the distribution of a total of SR 1.00 billion in cash dividend for Q3 2012, representing SR 0.5 per share.
STC Group CEO Khaled A. Alghoneim said: "The sustained strong financial results achieved during the third quarter reflects the efforts being made to constantly evolve, improve and develop the company's strategy both at the group and subsidiary levels. We maintain an acute focus on reinforcing our presence in our home market while at the same time capitalizing on opportunities for expansion both regionally and internationally."