Saudi Telecomms Company's profits surge

Saudi Telecomms Company (STC) posts massive first quarter profits, citing demand for pre-paid mobile cards as a key growth engine.

  • E-Mail
By  David Ingham Published  April 21, 2003

Saudi Telecom Company (STC) has reported net profit of SR2.26 billion ($603 million) for the quarter ended March 30. Revenue was SR6.71 billion.

In comparison, profit for the whole of 2002 was SR3.55 billion.

STC claims that the results show the largest first quarter profit ever reported by a Saudi company. “We achieved this increase in revenues despite the discounts we have offered to our clients on various service charges,” Khaled Al Molhem, STC’s president, said in a statement.

Molhem hinted that prepaid mobile phone cards, known as SAWA cards, were key drivers of the company's spectacular profit growth. Around 2.7 million of the company's now 5.7 million mobile subscribers use pre-paid cards.

Meanwhile, STC has ratified a decision to distribute SR750 of last year’s SR3.55 billion profit to shareholders. The remainder of that money will be kept in reserve to help fund projects such as the company’s SR2.5 billion mobile network expansion.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code