Saudi Telecom Co. — Earnings Release 2013

Apr 21, 2013

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 31.3.2013 (3 months).Cont.1

7010 · 21/04/2013 18:01:03 · Announcement #30565 · View on Saudi Exchange

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 31.3.2013 (3 months).Cont.1

9 - The financial numbers for the 1st quarter of 2012 were shown as per the equity method instead of the previously used proportionate consolidation method in order to be comparable with the new method used for Q1, 2013. STC previously announced on 20.10.2012 in Tadawul with the announcement for Q3, 2012 financial results, that starting from Q1, 2013, STC will start reporting the financial results using the equity method instead of the proportionate consolidation method previously used, this comes in compliance with the IASP release of the IFRS 11 for accounting for joint arrangements and that equity accounting must be used starting from January 2013.

Commenting on the results, STC Group chairman and managing director, Engineer Abdulaziz Al-Sugair, stated: The financial results for the 1st quarter of 2013 were overall good despite the provision resulting from the impairment of intangible assets in Aircel, India booked during the quarter and will set the foundation to lead the group to a new era of achievements. We have continued to further strengthen our position as one of the largest and most technologically advanced telecom operators both in our domestic market as well as in international markets. STC group has succeeded in remaining at the forefront of the telecommunications and information technology sectors in the Middle East and beyond, by optimizing operations and leveraging our expertise & our strength in providing our customers with the latest technologies & services with key focus on customer experience. We see significant growth potential both domestically and internationally, and we believe that our strong market position and expanding presence in the Kingdom of Saudi Arabia and key growth markets ensures that we are well placed to leverage growth opportunities both in the domestic and international markets. As a result, we are confident that we can deliver significant value to our shareholders in the future.

Domestically, STC continues the introduction of innovative and value added services that encourage mobile usage, and targeted packages bundled with advanced smart phones. This is underpinned by the Companys customer-centric approach and its efforts to enhance the overall customers experience. These efforts are producing results, STCs total domestic mobile customer (postpaid & prepaid) Increased 4% compared to same period last year. Cont.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.