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RIYADH: Saudi Telecom Co (STC) reported a 25 percent jump in third-quarter profit, missing market expectations. The increase in net profit was because of growth in broadband and business sector services as well as higher revenue from international operations, Saudi Telecom said yesterday.
The former monopoly made a net profit of SR1.95bn ($520m) in the three months to September. 30, compared with a forecast for SR2.42bn in a Reuters poll. Operating income rose 0.5 percent to SR3.02bn and revenue from services increased 8 percent to SR15.1bn. It will pay a dividend of 0.50 riyal per share, totalling SR1bn, out of third-quarter profit.
Soaring demand for broadband has lifted earnings in recent quarters, with STC offering bundle packages to woo customers back from rival operators Etihad Etisalat (Mobily) - an affiliate of UAE operator Etisalat, and Zain Saudi - part-owned by Kuwaiti group Zain. Reuters