Saudi Telecom Co. — Interim / Quarterly Report 2012

Jul 18, 2012

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 30.06.2012 (6 months). ( Cont 3 )

7010 · 18/07/2012 18:33:32 · Announcement #26601 · View on Saudi Exchange

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 30.06.2012 (6 months). ( Cont 3 )

Locally, Q2 2012 saw STC continue to perform well, with mobile postpaid customers increasing by 3% compared to Q1 2012. This can be attributed to the Companys continued focus on improving the customer experience, ongoing introduction of innovative services and bundles, such as the flexible ALJAWAL Keys, which enrich the customers experience by introducing the details of the monthly bill online through the STC Online portal and the ability to view call statistics graphs. In addition, we introduced free [Arabic] applications that can be used on the smart devices, and continued with the development of STCs customers retention programs.

Wireless broadband revenues grew by 88% during the 2nd quarter compared to Q2 2011. This can be attributed to increased 3G & 4G coverage which lead to the over 200% growth in the number of wireless broadband customers in Q2 2012 compared to same period last year. Further introduction of new products for Internet customers through the Companys QUICKnet packages and advanced smart phones allowed us to increase users by 58% in Q2 2012 compared to Q1 2012.

With regards to the home and business sectors, The number of fiber to the home and to the business ("FTTH & FTTB") customers increased over 800% in Q2 2012 compared to Q2 2011. As of 30 June 2012 there were 65,000 connected customers (homes & Businesses). This growth follows our objective of continued expansion of STCs Fiber optic network to reach 500,000 home pass by December 2012 and to reach 1,500,000 home pass by December 2014. As a result to this expansion, the number of InVISION subscribers (STCs Interactive TV service) increased over 400% in Q2 2012 compared to Q2 2011.

The Company grew its fixed broadband customer base by 18% in Q2 2012 compared to Q2 2011. The number Bundles services customers also continued to grow by 28% Q2 2012 compared to Q2 2011.(Cont.)

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