Saudi Telecom Group reported a net profit growth of 18.2 percent in the third quarter of 2017 compared to last year. Net profit growth for nine months was 7.5 billion riyals ($ 2 billion), up 10.4 percent.
“The financial results for Q3-17 were good due to the distinct growth in Enterprise and wholesales sectors revenue despite the decline in consumer revenue during the period,” the CEO Khaled Biyari said.
The Kingdom-based telecommunication provider attributed the growth in its year-on-year net profits to the decrease in revenues cost by SAR 1.72 billion.
“These good results were achieved despite the various economic and regulatory conditions in the domestic market,” Biyari added.
"These outstanding results were achieved as a result of company’s strategy adopted several years ago—which focuses on diversifying income sources and introducing innovative programs to improve operations efficiency,” he added.
The CEO also said that the improvement came “through increasing productivity and reducing costs”.
“STC through its various companies is collaborating with various government agencies and the private sector companies in Saudi Arabia to at a steady pace to create a modern environment which contributes to expanding and enhancing the digital environment,” added Biyari.
“The growth strategy adopted by the company recently aims to achieve the Kingdom Vision 2030 and the National Transition Program 2020. This means introducing major change to the telecommunications sector which will provide new opportunities outside the framework of traditional services,” he added.
Biyari also said that the market value of STC is expected to increase exponentially and rapidly.
STC competes in Saudi Arabia with Etihad Etisalat (Mobily) and Zain Saudi.
STC, which owns stakes in operators in the Gulf, Turkey and Asia, said in a separate statement that its board had proposed a cash dividend of 1 riyal per share for the third quarter.