RIYADH – Saudi Telecom Co, (STC), the Gulf's No.1 telecoms operator, reported a 6.7 percent rise in second-quarter profit Wednesday. It attributed the profit growth to an increase in its domestic broadband, business services and wholesales services sales, as well as higher revenue from international operations. It made a net profit of SR2.41 billion ($642.7 million) in the three months to June 30, up from SR2.26 billion in the year-earlier period, it said in a bourse statement. The company added that its operating income rose 13.5 percent to SR3.16 billion and its revenue from services rose 4.9 percent to SR14.56 billion.
STC said in a separate statement it would pay a dividend of SR0.5 a share for the second quarter. Soaring demand for broadband has lifted STC's earnings in recent quarters, with the state-run firm offering bundle packages to woo back customers from rival operators Etihad Etisalat (Mobily), an affiliate of the United Arab Emirates' Etisalat, and Zain Saudi, part-owned by Kuwait's Zain. Morgan Stanley in June upgraded STC stock to overweight and raised its price target to SR48 from SR39. – Reuters
