Saudi Telecom Company (STC) today announced the company’s preliminary financial results for the period ending at 31 March 2013 (3 months).
Revenues for Q1, 2013 reached SR 11,474m with an increase of 3.7% compared to the same period last year.
Gross profit for Q1, 2013 increased 2.6% compared to the same period last year reaching SR 6,494million.
Net Income for the Q1, 2013 reached SR 1,550m with a decrease of 38.5% compared to same period last year, and increased by 231% compared to the immediate prior quarter.
Wireless broadband revenue during the quarter grew 32% compared to the same period last year.
obile Broadband customers during the quarter increased 69% compared to the same period last year.
Fixed Broadband customers during the quarter increased 15% compared to the same period last year.
Net income for the 1st quarter amounted to SR 1,550 million compared to SR 2,521 million for the corresponding quarter last year, with a decrease of 38.5% and compared to SR 468 million for the immediately prior quarter, with an increase of 231%. The decrease in net income for the 1st quarter of 2013 compared to the same quarter last year (despite the 2.6% increase in gross profit and the improvement in operations efficiency), is attributed to the booking of non-cash charge of SR 500 million provision from impairment of intangible assets related to Aircel, India during the 1st quarter
The continued good company performance and commitment to delivering shareholder value has lead the Board of Directors to approve the distribution of a total of SR 1,000 million in cash dividend for Q1 2013, representing SR 0.5 per share.
Commenting on the results, STC Group chairman and managing director, Engineer Abdulaziz Al-Sugair, stated: “The financial results for the 1st quarter of 2013 were overall good –despite the provision resulting from the impairment of intangible assets in Aircel, India booked during the quarter – and will set the foundation to lead the group to a new era of achievements. We have continued to further strengthen our position as one of the largest and most technologically advanced telecom operators both in our domestic market as well as in international markets. STC group has succeeded in remaining at the forefront of the telecommunications and information technology sectors in the Middle East and beyond, by optimizing operations and leveraging our expertise & our strength in providing our customers with the latest technologies & services with key focus on customer experience. We see significant growth potential both domestically and internationally, and we believe that our strong market position and expanding presence in the Kingdom of Saudi Arabia and key growth markets ensures that we are well placed to leverage growth opportunities both in the domestic and international markets. As a result, we are confident that we can deliver significant value to our shareholders in the future.”
Domestically, STC continues the introduction of innovative and value added services that encourage mobile usage, and targeted packages bundled with advanced smart phones. This is underpinned by the Company’s customer-centric approach and its efforts to enhance the overall customers experience. These efforts are producing results, STC’s total domestic mobile customer (postpaid & prepaid) Increased 4% compared to same period last year.
STC continued deploying 3G & 3.5G networks to reach various parts of the country and continued with deploying 4G network to reach more than 5,000 sites. Therefore, wireless broadband customer base grew 69% during the quarter compared to the same period last year. As a result, wireless broadband revenues grew by 32% during the quarter compared to same period last year. This can be partially attributed to the increase in 3G and 4G coverage, which has led to the launch of new products and services that meet the needs of customers. Also, we have witnessed growth in QuikNet sales during the year and added three more QuickNet services over the 4G network.
STC’s fiber optic customers (homes & Businesses) increased by more than 531% compared to same period last year, and 35% compared to the immediate previous quarter. The ongoing network expansion has also led to a further increase of 153% in the number of “InVISION” subscribers (STC’s Interactive TV service) compared to same period last year and 14% compared to the immediate previous quarter. Fixed broadband subscriber during this quarter grew 15% compared to same period last year. Also, the number of subscribers in bundled services grew by 21% during the quarter, compared to same period last year.
Enterprise business unit overall revenues increased by 7% during the quarter compared to same period last year, driven by the 4% increase in Business sector postpaid mobile revenues, the 3% increase in business sector fixed line revenues and the increase in Data circuits services by 24% during the quarter compared to same period last year.
With regards to international operations, STC’s group continues to grow subsidiaries & affiliate companies operations driven by continued subscriber additions, STC’s subscriber base as of Q1, 2013 exceeded 170 million subscriber. During Q1, 2013 the group witnessed revenue growth of 23% in the controlled subsidiaries compared to same period last year, driven by continued market share growth in post-paid, pre-paid and wireless broadband services. With that, STC will continue to employ more efforts and continued focus to enhance the performance of Aircel, Cell C and Axis operations.