Saudi Telecom Group (STC) made a strong start this year posting impressive Q1 results with net profit jumping 60 per cent, from US$419mn in Q1 2011 to US$672mn in Q1 2012
The increase in net income is attributed to the 12 per cent increase in operating revenue, from $3.48 billion in Q1 2011 to $3.91 billion in Q1 2012, which was a result of growth in all of the group's services revenue.
The telecom company's operating profit for the first quarter increased 19 per cent to reach $847mn compared to $712mn for the same period last year.
Commenting on the results, STC Group CEO, Engineer Saud Al-Daweesh, said, "This quarter's performance also validates our continued efforts to drive financial performance, and to remain agile, providing shareholders with above average returns, by streamlining controls and embedding strategies that ensure long term profitable growth."
STC witnessed strong demand for fixed and wireless broadband services during the period. Domestic KSA revenues from mobile broadband services grew 145 per cent in Q1 2012 compared to the same period in 2011, while fixed broadband customers increased by 22 per cent.
The group's international growth has been driven by increased market share and network expansion in Turkey, South East Asia, India and South Africa.
The overall improvement in STC's operations efficiency is seen as the main contributing factor to the company's strong performance.
