STC reports 4.7% Net Income growth for the 1st quarter, and distributes SR 1 per share for Q1, 2015
Saudi NewsApr 20, 2015
Saudi Telecom Company (STC) today announced the company’s preliminary financial results for the period ending at 31 March 2015 (3 months).
Revenues from Domestic operations grew 16% compared to corresponding period last year.
Revenues from the controlled international grew 8% compared to corresponding period last year.
Operating profit for the quarter reached SR 3,380m, an increase of 27% compared to the same period last year.
EBITDA for the 1st quarter amounted to SR 5,160m, an increase of 20% compared to the same period last year.
FTTH customers grew 21% during the 1st quarter compared to the same period last year, and 7.5% compared the immediate prior quarter.
Mobile working lines increased 8% during the 1st quarter compared the immediate prior quarter.
Enterprise business unit overall revenues increased 12% during the 1st quarter compared to the same period last year.
Net profit for the 1st quarter reached SR 2,504m, an increase of 4.7% compared to the corresponding period last year, and an increase of 2.5% compared to the immediate prior quarter.
These financial results for the period has lead the Board of Directors to approve the distribution of a total of SR 2,000 million in cash dividend for Q1 2015, representing SR 1 per share.
Commenting on the results, STC Group chairman, Mr. Abdulaziz Alsugair, stated: “The strong financial results achieved for the 1st quarter 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 increased 15.7% compared to the comparable period last year and net profit increased 4.7% compared to the comparable period last year. We will continue focusing on customer satisfaction as part of STC strategy, by deploying cutting-edge technological resources, and investing in technology & innovative solutions across fixed, mobile and data products. The aim is to provide a robust quality infrastructure that support solutions and services exceeding the current customer needs. Such efforts place STC at the forefront of the regional Telecoms, who are laying the infrastructure for the knowledge economy.”
With regards to international operations, the 1st quarter witnessed revenue growth of 8% in the controlled international subsidiaries compared to same period last year.
Domestically, the 1st quarter witnessed revenue growth of 16% 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 8% increase in mobile working lines during the 1st quarter 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 1st quarter witnessed continuous 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 1st quarter, FTTH Customer base increased 21% compared to the same period last year, and 7.5% compared to the immediate previous quarter.
Enterprise business unit overall revenues increased 12% during the 1st quarter compared to the same period last year, driven by the increase in Business sector data services revenues.