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Saudi Telecom Profits Plunge by 79% on Overseas Writedowns
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Saudi Arabia's Saudi Telecom (STC) has posted a sharp fall in its fourth-quarter profits as the company was hurt by write-downs of overseas subsidiaries and a one-off tax charge.
The company posted a net profit for the quarter that was down by 70% to SR468 million (US$124 million), compared to SR2.28 billion (US$608 million) a year ago.
The company took one-time write downs of SR641 million on its investments in South Africa's Cell C and India's Aircel. The company was also hit by a SR544 million charge from deferred taxes at Aircel.
Excluding the write-downs, profits would have risen by 10 percent.
For the full year, the company reported revenues rising by 6.7 percent to SR59.4 billion, while net profits fell by 4.9% to SR7.35 billion.
Dr. Khaled A. Alghoneim, the Chief Executive officer of Saudi Telecom Group commented on the results, "The financial results for the period ending 31 December 2012 - despite the provisions resulting from the impairment of intangible assets & deferred taxes booked during the fourth quarter - provides a solid base for the next phase of STC's growth."
Tags: [stc] [Saudi Arabia] [South Africa] [India]
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