Saudi Telecom Company’s (STC’s) profits shot up to SR3.6bn ($970m) during the fourth quarter of 2013, after the operator decided to no longer include the losses of its Indian unit Aircel Group.

STC said it was reversing its losses from Aircel, which amounted to SR795m, between 1 April and 30 September 2013.

The changed accounting method led to a net profit increase of 37 per cent year-on-year to SR10bn, as a result of enhanced cost efficiencies, the absence of impairments from foreign units, foreign currency depreciation and income from other projects.

Over the past year, the company has been forced to change its strategy after its foreign units consistently booked losses and competition increased in its domestic market.

STC encountered problems in 2013 over a $1.2bn debt in its Indonesian subsidiary Axis, prompting negotiations with its creditors. Shortly after coming to new terms with the lenders, STC agreed to sell Axis to Malaysia’s Axiata Group.