Maxis IPO helps boost STC Q409 profits

STC posted a Q409 net profit of SAR 2.94 billion (US$784 million), an increase of 154 per cent year-on-year from SAR 1.16 billion in the fourth quarter of 2008. The state-owned integrated operator attributed this partly to the floating in November of a 25 per cent stake in Malaysian subsidiary Maxis, which added SAR 684 million to its coffers.

The Arab world’s largest telecom company by market value, saw its annual earnings per share drop by two per cent to SAR 5.41 .

Operating profit during the quarter slipped 8.2 percent to SAR 2.59 billion, while its full-year operating profit decreased by 16.8 percent to SAR 12.76 billion.

A precise amount was not given for the company’s revenues for 2009, but was stated at exceeding SAR 50 billion.

The company’s board proposed a dividend payout of SAR 0.75 per share for the fourth quarter, making a total of SAR 3 for the full year, lower than its 2008 payout of SAR 3.75 .

STC competes in the mobile market with Mobily, which posted a 35 per cent rise in fourth quarter profit, and with  Zain.