STC’s Q4 net income increases 10% to SR2.15bn

Saudi Telecom Company (STC) has announced its preliminary financial results for the period ending Dec. 31, 2016.
The company’s net income for the fourth quarter increased by 10 percent to SR2.15 billion ($573.3 million) compared to the same quarter last year. It will distribute dividends of SR1 per share for the fourth quarter, according to a press release.
Revenues from domestic operations during the year grew by 2.4 percent compared to last year. Consolidated revenues for the year rose by 2.4 percent from the previous year, the release added.
The customer base for bundled services increased by 19 percent during the fourth quarter compared to the same quarter last year. It saw an increase of 11 percent compared to the immediate prior quarter. Overall revenues at the enterprise business unit increased by around 19 percent during the fourth quarter compared to the same quarter last year.
The STC will distribute SR2 billion in cash dividend for the fourth quarter of 2016, representing SR1 per share. This is in accordance with the approved dividend policy for three years starting from the fourth quarter 2015. The policy, announced on Nov. 11, 2015, was ratified during the general assembly meeting on April 4, 2016.
STC Group CEO Khaled H. Biyari said: “The 2.4 percent increase in consolidated revenues for the 12- month period compared to last year confirms that the STC’s strategy is working well despite all the challenges and circumstances facing the communications sector and overall economic conditions.”
He added: “The decline in net profit for the 12-month period is mainly attributed to the increase in cost of services, which included significant costs resulting from the fingerprint authentication process for millions of customers and documented among relevant government agencies during the first half of the year.”
He also highlighted the company’s investments in software and systems relating to cloud computing and managed data services during the first half of this year.
Th STC also invested in programs that will have positive outcomes in the near future.

Source; Arab News