Saudi Telecom Co. — Earnings Release 2011

Jul 18, 2011

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 30.06.2011 (6 months). ( Cont -1.)

7010 · 18/07/2011 19:12:25 · Announcement #22338 · View on Saudi Exchange

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 30.06.2011 (6 months). ( Cont -1.)

Group CEO Eng. Saud Al Daweesh stated that this continuous increase in the Groups 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 company offering packages that are inclusive of voice, internet and digital television. Currently, there are more than 11million internet users where the companys internet traffic, encompassing all technologies, surpassed 1,600 terabytes accounting for around 90% of the Kingdoms 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.

In addition, the rise in operating income and EBITDA was mainly as a result of STC Group companies commitment towards reducing operating expenses whilst enhancing operating efficiency.

Domestically, revenue grew as a result of broadband, data and content services, where STC is the 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 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. Where the Subscribers to this service have increased by 717% during the first half of 2011, mainly as a result of the company having the largest protected fiber optic network in the region. This network covers more than 130 thousand kilometers and includes all cities, villages and roads within the Kingdom. It should be noted that the number of subscribers of fixed broadband increased by 15% compared to the same period last year, similarly, the number of VERVE subscribers increased by 309% since the beginning of 2011. In terms of service excellence STC is providing a substantial internet service that will ensure that homes have the latest applications that are available, this will ensure that they are smart homes.

(Cont)

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