STC announced its consolidated financial results for the period ending 30/06/2011 where the 2nd quarter revenues increased to SR 13,880 million compared to SR 12,591 million for the corresponding quarter last year with an increase of 10%, the increase is mainly from increased contribution from Broadband in the local market & growth in international operations. Operating Income for the quarter reached SR 2,783 million compared to SR 2,345 million for the corresponding quarter last year with an increase of 19%.
Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) for the 2nd quarter amounted to SR 5,086 million compared to SR 4,504 million for the corresponding quarter last year with an increase of 13%, and for the 6 months amounted to SR 9,900 million compared to SR 8,964 million for the corresponding period last year with an increase of 10%.
Net income for the 2nd quarter amounted to SR 2,256 million compared to SR 2,062 million for the corresponding quarter last year, with an increase of 9%, and compared to SR 1,573 million for the immediately prior quarter, with an increase of 43%.
The increase in net income for the quarter comparing with the corresponding quarter last year, is attributed to the strong growth within the domestic Broadband (fixed & mobile) and content revenues, in addition to the growth in revenues from international operations.
STC’s earnings per share for the 6 months amounted to SR 1.92 compared to SR 1.92 for the corresponding period last year. The Board has adopted the distribution of SR0.50 per share for Q2, 2011 which represents 5% of the share par value. The distribution of SR 0.50 to the registered shareholders at the close of the market on the 27th of July and payment will be made on Wednesday the 10th of August.
Group CEO Eng. Saud Al Daweesh stated that this continuous increase in the Group’s revenue is mainly attributed to strong growth within the domestic operations revenues as a result of increased broadband customers (fixed & mobile), where STC is the only company offering packages that are inclusive of voice, internet and digital television. Currently, there are more than 11million internet users where the company’s internet traffic, encompassing all technologies, surpassed 1,600 terabytes accounting for around 90% of the Kingdom’s traffic. In addition, international operations, where the percentage contribution of revenue increased to 34% as a result of STC Group affiliates and Subsidiaries acquiring increased market share. These subsidiaries & affiliates will continue investing in expanding their existing networks and deploying advanced 3G networks.
Domestically, revenues grew as a result of broadband, data and content services, where STC is the only company that can provide multiple, integrated and comprehensive solutions for internet users in the Kingdom. This was achieved through broadband networks, fixed or mobile, using various modern world technologies (DSL, FTTH, 3G, HSDPA + and soon LTE). Also STC, as the first telecom operator in the Kingdom to launch an internet package at 100 MB for the home, allowed the introduction of an interactive TV package, Invision.