STC posts 54% net income growth

22/04/2014 07:59 AST

Saudi Telecom Co. (STC) has reported a 54 percent net income growth for the first quarter for 2014.

It would distribute dividends of SR0.75 per share for the first quarter, according to a statement.

Operating profit increased 20 percent during the first quarter of 2014, with major improvements in international operations and continued revenue growth in business sector services. Revenues from the controlled international subsidiaries (excluding Axis Q1, 2013 revenues for comparison purposes) grew 24 percent compared to corresponding period last year. After adjusting all comparable numbers, net profit for the 1st quarter reached SR 2,391 million, an increase of 54 percent compared to the corresponding period last year, and a decrease of 34 percent compared to the immediately prior quarter.

These financial results for the period has lead the board of directors to approve the distribution of a total of SR1,500 million in cash dividend for Q1 2014, representing SR 0.75 per share.

Commenting on the results, Abdulaziz Alsugair, STC Group chairman and managing director, stated: “The financial results achieved during the first quarter of the current year reflects the efforts being made to constantly evolve, improve and develop the company’s strategy and operations both domestically and internationally.”

Alsugair also said: “Despite the decrease in consolidated revenue for Q1 by 6 percent compared to the same period last year, cost of services and operating expenses during the first quarter decreased 8 percent and 17 percent consecutively compared to the same period last year, as a result to the company’s continuous efforts to control cost and improve the overall efficiency of the operations. in the meantime, STC continued to grow its international operations, revenues from the controlled international subsidiaries (excluding Axis Q1, 2013 revenues for comparison purposes) grew 24 percent compared to corresponding period last year.

Arab News