STC reports Net Income over SR 5 billion, with 13% growth in Operating Profit for the 1st half 2015
Saudi NewsJul 30, 2015
Saudi Telecom Company (STC) today announced the company’s preliminary financial results for the period ending at 30 June 2015 (6 months)
Revenues from domestic operations for the 1st half grew 11% compared to the same period last year
Revenues from the controlled international subsidiaries for the 1st half grew 7.1% compared to corresponding period last year
Consolidated revenues for the 1st half reached SR 24,696m, an increase of 9.7% compared to the same period last year
Operating profit for the 1st half reached SR 6,343m, an increase of 13% compared to the same period last year
EBITDA for the 1st half amounted to SR 9,953m, an increase of 11% compared to the same period last year
FTTH Customer base during the 2nd quarter increased 15% compared to the same period last year, and 8% compared to the immediate previous quarter
Mobile working lines increased 5% during the 2nd quarter compared to the same period last year, and increased 1% compared to the immediate prior quarter
Enterprise business unit overall revenues increased 17% during the 2ndt quarter compared same period last year
Commenting on the results, STC Group CEO, Dr. Khaled H. Biyari, stated: “The financial results achieved for the 1st half of 2015, reflects the efforts being made to constantly evolve, improve and develop the company’s strategy and operations both domestically and internationally. Revenues from services for the 1st half increased 9.7% compared to the comparable period last year and operating profit for the same period increased 12.7% compared to the comparable period last year. Therefore, we assure that STC will continue to invest in both, its national human resources and infrastructure in order to reach the highest levels of customer satisfaction and enrich our customers’ experience. Within this frame, STC will continue to invest positively, especially in cutting-edge technology and broadband which will allow us to develop new services for our individual, residential and business customers. This will support STC strategic role in achieving sustainable growth, enabling government institutions and private sector transformation to the national knowledge-based economy, which requires strong infrastructure, high reliability through our communication networks, data centers, and business applications. Eventually, this will open the door for numerous new opportunities for growth and create new sources for income.”
With regards to international operations, the 1st half 0f 2015 witnessed revenue growth of 7.1% in the controlled international subsidiaries compared to same period last year, and this is attributed mainly to the continued growth in controlled subsidiaries customer base and market shares.
Domestically, the 1st half witnessed revenue growth of 11% from domestic operations compared to same period last year. As STC continues with the introduction of innovative services and customized offers with the appropriate smart phones that encourages mobile usage for both post-paid and pre-paid “SAWA” customers, which resulted in 5% increase in mobile working lines during the 2nd quarter compared to the same period last year, and an increase of 1% compared to the immediate previous quarter. This is underpinned by the Company’s customer-centric approach and its efforts to enhance the overall customers’ experience. Also, the 2nd quarter witnessed continuous strong growth in data traffic over the 4G network. This is mainly attributed to the company’s continuous deployment of the 4G network and the availability of the smart phones that support 4G technology.
STC’s continues with the deployment of the fiber optic network for both business and residential. During the 2nd quarter, FTTH Customer base during the 2nd quarter increased 15% compared to the same period last year, and 8% compared to the immediate previous quarter.
Enterprise business unit overall revenues increased approximately 17% during the 2nd quarter compared to the same period last year, driven by the 28% increase in Business sector data services revenues compared to same period last year.