Saudi Telecom Co. — Interim / Quarterly Report 2013

Apr 21, 2013

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 31.3.2013 (3 months).Cont.2

7010 · 21/04/2013 18:00:36 · Announcement #30566 · View on Saudi Exchange

Saudi Telecom Company announces the interim consolidated financial results for the period ending at 31.3.2013 (3 months).Cont.2

STC continued deploying 3G & 3.5G networks to reach various parts of the country and continued with deploying 4G network to reach more than 5,000 sites. Therefore, wireless broadband customer base grew 69% during the quarter compared to the same period last year. As a result, wireless broadband revenues grew by 32% during the quarter compared to same period last year. 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 and added three more QuickNet services over the 4G network.

STCs fiber optic customers (homes & Businesses) increased by more than 531% compared to same period last year, and 35% compared to the immediate previous quarter. The ongoing network expansion has also led to a further increase of 153% in the number of InVISION subscribers (STCs Interactive TV service) compared to same period last year and 14% compared to the immediate previous quarter. Fixed broadband subscriber during this quarter grew 15% compared to same period last year. Also, the number of subscribers in bundled services grew by 21% during the quarter, compared to same period last year.

Enterprise business unit overall revenues increased by 7% during the quarter compared to same period last year, driven by the 4% increase in Business sector postpaid mobile revenues, the 3% increase in business sector fixed line revenues and the increase in Data circuits services by 24% during the quarter compared to same period last year.

With regards to international operations, STCs group continues to grow subsidiaries & affiliate companies operations driven by continued subscriber additions, STCs subscriber base as of Q1, 2013 exceeded 170 million subscriber. During Q1, 2013 the group witnessed revenue growth of 23% in the controlled subsidiaries compared to same period last year, driven by continued market share growth in post-paid, pre-paid and wireless broadband services. With that, STC will continue to employ more efforts and continued focus to enhance the performance of Aircel, Cell C and Axis operations.

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