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FINANCIAL NEWS
Saudi Telecom reports 31% decline in Q2 profits
21 Jul 2010
(MENAFN) Saudi Telecom Co. (STC), the largest listed telecom operator in the Middle East, said that its second-quarter net profit fell 31 percent to $549.9 million from $773.3 million in the year-earlier period, beating analyst forecasts, SPA reported.
STC attributed the decline mainly to a rise in capital expenditure on its foreign investments in telecom operators, lower prices of international calls and higher fees related to using external networks.
The Kingdom?s largest telecoms group by market value saw its operating income fall 27 percent year on year to $626.6 million, slightly below its level in the first quarter of this year.
Saudi Telecom has spent about $7 billion since 2007 to aggressively strengthen its foreign presence, mainly in Asia, while the domestic market opened to more players.
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