Home / / Saudi Telecom Co sees 9% rise in Q2 net profit

Saudi Telecom Co sees 9% rise in Q2 net profit

Broadband and content drives growth for STC

STC said fixed broadband subscription and content was behind its growth.
STC said fixed broadband subscription and content was behind its growth.

Saudi Telecom Company (STC) said on Monday its net profit for the second quarter of 2011 reached SR2.256bn ($601.6m) compared to SR2.062bn for the corresponding quarter last year.

It said net Q2 net profit was up by nine percent and had increased 43% compared to the first quarter of this year.

The telco added that the increase in net income was due to the strong growth within the domestic broadband (fixed and mobile) and content revenues.

In addition, it said that growth in revenues from international operations also contributed to the stronger performance.

Group CEO Saud Al Daweesh said in a statement posted on the Saudi bourse that international operations contributed 34% of revenues.

He added that domestically, revenue grew as a result of broadband, data and content services with its fibre optic network covering more than 130,000km.

The number of subscribers of fixed broadband increased by 15% in Q2 this year compared to the same period last year, he said.