Saudi Telecom Co. — Earnings Release 2012

Jan 21, 2013

Saudi Telecom Company announces the interim consolidated financial results for the year ending at 31.12.2012 (12 months).Cont. 2

7010 · 21/01/2013 09:17:39 · Announcement #28523 · View on Saudi Exchange

Saudi Telecom Company announces the interim consolidated financial results for the year ending at 31.12.2012 (12 months).Cont. 2

Dr. Khaled A. Alghoneim, the Chief Executive officer of Saudi Telecom Group commented on the results, The financial results for the period ending 31 December 2012 - despite the provisions resulting from the impairment of intangible assets & deferred taxes booked during the fourth quarter - provides a solid base for the next phase of STCs growth. This will be underpinned by the new programme which was launched recently. The programme focuses on driving efficiencies and optimising operational performance across the group. At its core it will enable us to be more nimble, positioning the Group to seize opportunities offered by the rapidly evolving global telecommunications sector, which will lead to improved profitability and maximising shareholder value. We consider our ability to provide fully integrated ICT solutions to be fundamental to our future growth and we are investing significant capital and resource in the development of our technical capabilities to meet customer needs, in additional to ensuring the success of our strategic programme.

The competitive environment in the sector requires more sustained and collaborative industry effort from the major global players. STCs ability to adapt to change through investment in creative, innovative solutions and the delivery of new customer-focused initiatives will be key driver of our future success.

Domestically, we continued with deploying our 3G & 3.5G networks to reach various parts of the country, continued with deploying 4G network to reach more than 2,500 sites, introduced 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 9.3% compared to Q4 2011 and 2.6% compared to Q3 2012.

The wireless broadband customer base also grew well during the year. As a result, wireless broadband revenues grew by 64% during the year compared to 2011. This can be partially attributed to the increase in 3G and 4G coverage, which has led to the launch of new products and services that meet the needs of customers. Also, we have witnessed growth in QuikNet sales during the year.cont.

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