STC’s net profit up 0.7% to SAR 5.637 bln in H1 2020

Saudi Telecom Co. (STC) reported a marginal increase in H1 2020 net profit after Zakat and tax to SAR 5.637 billion, compared to a net profit of SAR 5.598 billion a year earlier, buoyed by a 2.6% rise year-on-year (YoY), and higher revenue.

STC also booked SAR 562 million in net other gains, compared to net other losses of SAR 93 million in H1 2019, on the capital gains recorded from STC’s sale of a direct stake in Careem.

The second quarter net profit after Zakat and tax decreased by 4% YoY to SAR 2.72 billion, due to a rise in operating expenses, as well as higher selling, general, administrative and marketing expenses.

When compared to the previous quarter, the telecom operator’s net profit saw a decline of 6.4%, on higher operating expenses. Moreover, the telecom operator reported a decline in net other gains to SAR 131 million in Q2, from SAR 431 million in Q1 2020.