Saudi Telecom Co. — Interim / Quarterly Report 2012

Oct 20, 2012

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 30.09.2012 (9 months).Cont. 3

7010 · 20/10/2012 18:04:09 · Announcement #27447 · View on Saudi Exchange

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 30.09.2012 (9 months).Cont. 3

The wireless broadband customer base also grew well in the third quarter, increasing by 17% compared to the immediate prior quarter. As a result, wireless broadband revenues grew by 68% during the same period compared to Q3 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, QuikNet sales during Q3 increased by 147% compared to same period last year, as a result to the various flexible QuikNet packages.

STCs fiber optic customers (homes & Businesses) increased 722% compared to Q3 2011 following the continued expansion of its "Fiber Optic" network (FTTH) & (FTTX) in Saudi Arabia. STCs subscribers are now able to enjoy Internet speeds of up to 200 Mb/sec. The ongoing network expansion has also led to a further increase of 326% in the number of InVISION subscribers (STCs Interactive TV service) compared to Q3 2011 and 27% compared to the previous quarter. Fixed broadband subscriber during this quarter grew 18% compared to Q3 2011. Also, the number of subscribers in bundled services grew by 22% during the quarter, compared to Q3 2011.

STC has also invested significantly during the third quarter to ensure pilgrims traveling for the Hajj season have access to services they need, preparations include the enhancement of network coverage, capacity increases of approximately 60%, the doubling of connection capacity between servers and boosting international link circles by more than 192,000 circles. The Company has also increased its network capacity with more than 747 new locations to be able to serve more than 26 million users by strengthening its networks in Makkah, Madinah and holy areas.

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.