Saudi Telecom posts 60% rise in Q1 profit

Saudi Telecom Co (STC) on Wednesday reported a 60 percent increase in first-quarter net profit, beating analysts' estimates as revenue in its mobile, fixed line, corporate and wholesale divisions rose. The former monopoly made a profit of SR2.52bn ($672m) in the three months to March 31, up from SR1.57bn in the year-earlier period. Analysts polled by Reuters on average forecast STC would post a quarterly profit of SR2.05bn. "The increase in net income... came as a result (of) the growth in all of the group services revenue," STC said in a statement, referring to its mobile, corporate, fixed line and wholesale units. Quarterly revenue was SR14.7bn, up from SR13.1bn in the corresponding period of 2011. STC has won back domestic market share by aggressively pricing broadband bundle packages, while the firm - majority-owned by the government - has operations across the Muslim world from Turkey to Indonesia.