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Operating Income For Q1 Reaches 2,669 Million With An Increase Of 13% Compared To Same Period Last Year & Distributes SR 1 Billion To Shareholders For Q1
Published Apr 26, 2011
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STC announced its consolidated financial results where the 1st quarter revenues increased to SR 13,076 million compared to SR 12,520 million for the corresponding quarter last year with an increase of 4%. Operating Income for the quarter reached SR2,669 million compared to SR2,353 million compared for the corresponding quarter last year with an increase of 13%. Earnings before interest, tax and depreciation & amortization (EBITDA) for the quarter reached SR4,814 million, an increase of 8% compared to same period last year. The increase in revenues is attributed to the enhancement of operational efficiencies of the Group’s subsidiaries and affiliate companies.
The net income during the quarter amounted to SR 1,573 million compared to SR 1,772 million for the corresponding quarter last year. In spite of the double digit increase in operating income for the quarter comparing with the corresponding quarter last year, the net income decrease is attributed to the two-month salary payment to all employees amounted to SR 375 million. This payment was made to all employees as a gesture to follow the initiative of the Honorable Royal Decree. Without counting this two-month salary, net profits for the quarter would have been SR 1,948 million representing a 10% increase compared to the corresponding period last year.
In a meeting held at STC HQ in Riyadh, STC Board of Directors approved dividends of SR 1 billion to shareholders.
STC Group CEO Eng. Saud Al Daweesh stated that this continuous growth in the Group’s revenues is attributed to International operations growth, where the percentage contribution of international operations revenue increased to 34% compared to 31% corresponding to the same period last year. This was possible due to the increase in customers and continued subsidiaries’ & affiliates companies acquiring more market share. Furthermore, the group continued expanding its existing networks and deploy advanced 3G networks in countries such as Turkey, India, Malaysia and South Africa. All these expansions will enhance the market share in these countries and attract more customers, which will have a positive impact on overall growth and increase revenues from international operations during the next few years. The increase in operating income and EBITDA was a result of the growth in broadband revenues and STC group companies’ commitment to reduce operating expenses & enhancing operation efficiency.
Eng. Saud Al Daweesh added that excellence in customer service is at the forefront of the group priorities, while maintaining a leading position in the local market, where the group will continue to provide services to its customers of the highest quality and at competitive prices. In addition, STC Group will continue to work to achieve further growth within the international market, which will contribute to the achievement of financial returns for the group in the coming years.
Posted by
VMD - [Virtual Marketing Department]
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