Saudi Gazette - STC’s net profit dives 40% in H1

Saudi Gazette - STC’s net profit dives 40% in H1:

"Saudi Telecom Company (STC) announced the company’s preliminary financial results for six months ending June 20, 2013.

Net profit for the 1st half of 2013 amounted to SR2.98 billion compared to SR4.93 billion for the corresponding period last year, a decrease of 40 percent, and for the 2nd quarter net profit reached SR1.43 billion compared to SR2.41 billion for the corresponding period last year, a decrease of 41 percent, and a decrease of 8 percent compared with the immediately prior quarter.

The decrease in net profit for the 1st half of 2013 compared to the same period last year (despite the 4 percent increase in gross profit during the 1st half of 2013), Is attributed to the booking of one-time, non-recurring and non-cash charge of SR1.10 billion resulting from fair valuation of its investments in Asia (Aircel and Axis) and unrealized FX losses of SR601m due to the sharp depreciation of Turkish lira, Indian rupee and Indonesian rupiah (despite the 4 percent increase in gross profit for the period due to the increase in services revenue)."

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