Saudi Telecom Company (STC) posted a decrease of 40 percent in its net profit for the first half of the year to SAR 2.98 billion. The group attributed the lower profits to one-time charges of SAR 1.10 billion to write down its investments in Aircel and Axis and unrealized forex losses of SAR 601 million due to the depreciation of the Turkish Lira, Indian Rupee and Indonesian Rupiah. The disposal of fixed assets with a net book value of SAR 277 million during the first quarter had also an impact on net profit.
Revenues from domestic operations during the first half increased 5 percent year-on-year thanks to growth in the business sector and broadband (fixed & wireless). Revenue growth of 22 percent was recorded at controlled subsidiaries, which lead to an overall increase of 4 percent in STC group revenue for the first half. STC's subscriber base at the end June exceeded 175 million. EBITDA for the first half amounted to SAR 7.94 billion, down 6 percent from a year earlier.
STC said it did not expect any further impact from the international operations, as they have now been written down to fair value. It's also starting a strategic review to look at a possible exit of some of its Asian investments.
