Saudi Telecom sector profits up 59% to SR4.6bn in Q3

(MENAFN- Arab News) Profits of the telecom sector grew by 59 percent to reach SR4.6 billion in the third quarter of the current year compared to SR2.9 billion in the same period last year, according to a financial report. The major boost of the sector profits came from Saudi Telecom Company (STC) whose share was 84 percent of the sector's profit growth. STC's profits rose by 73 percent to SR3.4 billion in Q3, 2013 compared to nearly SR2 billion in Q3, 2012, the report prepared by Al-Eqtisadiah daily said. In general, the telecom sector's share stood at 57 percent of the profit growth achieved by the listed companies in Q3, which soared to SR3 billion. The sector captured 15 percent of the overall listed companies' profits worth SR30 billion in Q3, the report said. Five telecom firms are listed on Saudi stock market (Tadawul): STC, Etihad Etisalat (Mobily), Zain Saudi Arabia, Etihad Atheeb Telecom Company (GO), and the Integrated Telecom Co. (ITC) whose shares are suspended to trade at Tadawul and financial results not announced. STC STC's profits soared by 73 percent to SR3.4 billion in Q3, 2013 compared to nearly SR2 billion in Q3 2012, where it added SR1.4 billion to profit base. The company's share was 47 percent and 84 percent of the listed companies and telecom sector total profit growth, respectively, in Q3, 2013. The company attributed the increase in profits to the improvement of operation efficiency, which led to the reduction of service and operating expenses at SR907 million compared to the figures of Q3 2012 in addition to the increase of revenues to SR552 million. Mobily Mobily has its profits grown by 12 percent to SR1.7 billion in Q3, 2013 compared to SR1.5 billion in the equivalent period last year. The company's share was 6 percent and 10 percent of the listed companies and telecom sector total profit growth, respectively, in Q3, 2013. Profits growth in the company was attributed to the increase of revenues, notably at the business sector, carriers and operators, the report said. Zain KSA Zain KSA cut its losses by 15 percent to SR421 million in Q3 compared to SR493 million in Q3, 2012. The company's share was 2 percent and 4 percent of the listed companies and telecom sector total profit growth, respectively. The losses cut in Q3 was attributed to the growth of revenues at 7 percent to SR1.57 billion compared to SR1.47 billion in the same period last year. The growth of revenues was also attributed to a number of factors including growth in subscriber base at 24 percent to reach 8.6 million customers by the end of Q3, 2013 and higher growth rates of data transfer at 37 percent in Q3 compared to figures of last year. The company has managed to cut back operating expenses by 22 percent to SR239 million in Q3, 2013 compared to SR305 million in the equivalent quarter of 2012, the report said. GO GO has its losses shrunk by 36 percent to SR43 million from SR79 million in Q3, 2012. The company's share was 1 percent and 2 percent of the listed companies and telecom sector total profit growth, respectively. The company attributed the reduction of losses in Q3 to the decrease of marketing and general expenses and reduction of depreciation costs, the report pointed out.