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FINANCIAL NEWS
Saudi Telecom posts 26% drop in Q1 profit
20 Apr 2010
(MENAFN) A statement issued by Saudi Telecom Co (STC) said the company saw a 29 percent drop in first-quarter net profit, a sharper decline than expected, Reuters reported.
STC made $472.5 million net profit in the first quarter, down from $663 million in the year-earlier period. The company said that it may distribute $0.2 per share in dividend.
Its quarterly operating profit dropped 39 percent to $626 million year-on-year. STC blamed the decline on a fall in international call prices, a rise in fees related to using external networks and an increase in expenses due to capital investments throughout the group, including setting up new networks and expanding existing ones.
The firm also said that the shrinking of the group’s ownership in Malaysia’s Maxis due to listing 30 percent on the Malaysian stock exchange has also contributed to the profit decline.
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