Saudi Telecom Co. — Interim / Quarterly Report 2011

Oct 19, 2011

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 30.09.2011 (9 months). Cont. 2

7010 · 19/10/2011 15:59:15 · Announcement #23112 · View on Saudi Exchange

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 30.09.2011 (9 months). Cont. 2

These investments contributed to the achievement in the local market of significant growth in revenue from broadband services (fixed and mobile), where fixed broadband customers increased by 27% compared to the same period last year. The mobile broadband revenue increased by 151% compared to the same period last year as a result to the growth of data traffic and higher number of mobile broadband customers at the end of the third quarter which increased by 66% compared to the same period last year, and also as a result of the launch of new and innovative post & prepaid mobile services, Quick Net and the continuous introduction of smart devices and tablet, targeting different segments and providing them exclusive dedicated packages, such as iPhone, Samsung Galaxy S2, Samsung Galaxy tabs, Sony Ericsson XPERIA ray, LG Optimus, the new BlackBerry 9900 and 9810 and a chrome book. As a continuation of excellence in roaming services, STC has introduced roaming data packages, providing Internet service to roaming customers within 56 operators in 41 countries at attractive prices. Internationally, the group continues to achieve growth in the operations of subsidiaries and affiliates companies, to acquire a larger market share. For example, in Bahrain, VIVA continues with outstanding performance, surpassing all goals, and with the number of subscribers increased at more than 28% during the nine months, exceeding the target by 15%. Thus giving rise to revenue growth, for the nine months, of 167% compared to the same period last year. In Kuwait, despite the intense competition in the market, VIVA continues, to attract subscribers due to the outstanding services and offerings, leading to the third quarter revenue exceeding target. In Malaysia, Maxis continues its leadership of the telecoms market, enjoying a subscriber base of 13 million customers. In Indonesia, AXIS was able to acquire new customers and increase its subscriber base during the nine months by more than 50% to reach 15 million subscribers. In addition, the revenue has grown, for the nine months by 268% compared to the same period last year.The Group also saw significant growth in broadband revenues as a result of increased use by the younger generation using social networking services via handsets and smart phones, in the most important markets after the United States, Indonesia, India and Turkey. The group is continuing to improve operational efficiency and reduce costs through the group synergy program

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.