STC reports Net Income of SR 7.4 billion, with 2.3% growth in Operating Profit for the 9 months period of 2015
Saudi NewsOct 21, 2015
Saudi Telecom Company (STC) today announced the company’s preliminary financial results for the period ending at 30 September 2015 (9 months)
Revenues from domestic operations for the 9 months period grew 10% compared to the same period last year
Revenues from the controlled international subsidiaries for the 9 months period grew 9% compared to corresponding period last year
Consolidated revenues for the 9 months period reached SR 37,590m, an increase of 9.7% compared to the same period last year
Operating profit for the 9 months period reached SR 9,381m, an increase of 2.3% compared to the same period last year
EBITDA for the 9 months period amounted to SR 14,911m, an increase of 3.7% compared to the same period last year
FTTH Customer base for the 3rd quarter increased 21% compared to the same period last year, and 6% compared to the immediate previous quarter
Mobile working lines increased 5% for the 3rd quarter compared to the same period last year, and increased 0.5% compared to the immediate prior quarter
Enterprise business unit overall revenues increased 14% during the 3rd quarter compared to the same period last year
Commenting on the results, STC Group CEO, Dr. Khaled H. Biyari, stated: “The 10% increase in Consolidated revenue and the 3.7% increase in EBITDA for the 9 months period compared to the same period last year, confirms that STC strategy is working well. While, the decline in Net Profit for the 9 months period is mainly attributed to STC investments in programs that will have positive outcomes in the near future, such as Early retirement program and the disposal of old assets. Also, due to the FX losses (non-operating and non-cash) related to the significant depreciation of the Turkish Lira against the US Dollar during the 9 months period compared to the same period last year.
I assure, that STC will continue to invest in infrastructure, advanced networks and new technologies which will enable us to reach new levels of customers satisfaction and enrich our customers’ experience. Currently, the Telecom sector is going through a major transformation phase, and the conversations that are taking place are about integrated ICT providers, Cloud computing, Internet of Things, and other hot topics. STC’s strategy will enable us to lead this transformation phase, and to re-positioned the company in order to accommodate and address all variables and developments for the purpose of meeting our customers’ aspirations. We have been executing an ambitious transformation strategy designed to empower STC in order to compete in this new environment and to operate as an efficient ICT provider at a world-class standard and to deliver on its distinguished role for the nation.”
With regards to international operations, the 9 months period witnessed revenue growth of 9% 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 9 months period witnessed revenue growth of 10% from domestic operations compared to same period last year, as a result to the growth in all sectors revenues. STC continues with the introduction of innovative mobile 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 3rd quarter compared to the same period last year, and an increase of 0.5% 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 3rd 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 3rd quarter, FTTH Customer base increased 21% compared to the same period last year, and 6% compared to the immediate previous quarter.
Enterprise business unit overall revenues increased approximately 14% during the 3rd quarter compared to the same period last year, driven mainly by the 19% increase in Business sector data services revenues compared to same period last year.