STC sees profits fall nine per cent in Q215

Saudi Telecom (STC) blamed rising costs as it posted an 8.7 percent fall in second-quarter profit.

The telco reported a net profit of SAR2.56 billion (US$683 million) in the three months to June 30, stating that general and administrative costs, plus amortisation and depreciation costs, rose by a combined SAR246 million in the second quarter, while taxes and employee retirement payouts together increased SAR178 million.

Quarterly revenue grew 4.3 per cent to SAR12.22 billion.

STC reported falling profits in two of the preceding three quarters, stalling an improvement in its bottom line that had been due to trimming its international ambitions and refocusing on its lucrative home market.

In February, the telecommunications regulator announced it would cut interconnection costs, a move seen helping loss-making number three player Zain Saudi win market share.