Saudi Telecom Q4 net profit falls 26 pct
The overall percentage contribution of the firm's international operations had increased due to a larger number of subscribers.
January 20, 2011 10:13 by Reuters
State-controlled Saudi Telecom (STC), the kingdom’s biggest operator, posted a 26 percent fall in fourth-quarter net profit, it said.
Net profit fell to 2.3 billion Saudi riyals ($613.3 million) from 2.94 billion riyals a year ago, STC said in a bourse statement.
Despite the loss, the overall percentage contribution of the firm’s international operations had increased due to a larger number of subscribers, the statement said.
It added that increased investment to improve the service in foreign operations would yield higher revenues in future.
Like other Gulf telecom operators, STC, the Arab world’s largest telecom company by market value with over 100 million subscribers calculated on a consolidated group basis, has expanded overseas after losing its monopoly at home.
(Reporting by Ulf Laessing; Editing by Erica Billingham)