STC suffers fourth quarterly profit fall

Saudi Telecom Company's (STC) net profits dropped 8.6% to US$827 million during the second quarter of 2007.

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By  Ronan Shields Published  July 18, 2007

Saudi Telecom Company's (STC) net profits dropped 8.6% to US$827 million during the second quarter of 2007.

The results represents the fourth consecutive quarterly fall in the company's profits.

Revenue also fell 0.5% to US$2.25 billion, while operating profit declined to US$858.5 million, a 7.1% decrease on the same period last year.

Despite the declines, STC's share value rose as high as 1.2% on the back of the news. The results were an improvement on analyst predictions the profits would not surpass US$792 million for the three months ending June 30.

STC's losses have been attributed to its loss of its monopoly status in the mobile sector. STC will also set to lose its monopoly in the fixed-line sector in Saudi next year after three fixed-line licenses were awarded earlier this year.

Caption: STC lost its monopoly status in the mobile segment in 2005 with the entry of Mobily.

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