Bonuses cut into profits
Saudi Telecom Company (STC) has announced first-quarter revenues of SR13bn ($3.5bn), a rise of 4 per cent since the first quarter of 2010 thanks to growth in broadband subscribers.
Net income decreased by 11 per cent to SR 1.57bn compared with SR 1.77bn for the corresponding quarter last year due to a two-month bonus salary payment given to employees in line with recent pay offs made by the government to appease citizens.
STC’s overseas operations contributed 34 per cent to total revenue, compared with 31 per cent in the first quarter of 2010. The state-owned operator has operations in Kuwait, Bahrain, India, Indonesia, Malaysia, Turkey and South Africa.
“STC Group will continue to work to achieve further growth within the itnernational market, which will contribute to the achievement of financial returns for the group in the coming years,” says Saud al-Daweesh, STC’s chairman.
The group’s board of directors approved dividends of SR1bn to shareholders.