Saudi Telecom Co. — Interim / Quarterly Report 2012

Jan 21, 2013

Saudi Telecom Company announces the interim consolidated financial results for the year ending at 31.12.2012 (12 months).Cont. 1

7010 · 21/01/2013 09:17:52 · Announcement #28520 · View on Saudi Exchange

Saudi Telecom Company announces the interim consolidated financial results for the year ending at 31.12.2012 (12 months).Cont. 1

8 The decrease in net income for the fourth quarter compared to the same quarter last year (despite the 2.6% increase in gross profit), is attributed to two main reasons: First, the group re-evaluation of its investments fair value in Cell C, South Africa and Aircel, India during the fourth quarter, which resulted in recognizing a one-time, non-recurring and non-cash charge of SR 641 million provisions from impairment of intangible assets. Second, due to the change in telecom regulations in India, Binariang had to take a deferred taxes charge related to Aircel operations, STC group share of these deferred taxes was SR 544 million, and this is also a one-time, non-recurring and non-cash charge.

9 The decrease in net income for the 12 months compared to the same period last year (despite the 7.2% increase in gross profit), is attributed to the two main reasons above. With the exception of these two transactions, the net income for the year would have been approximately SR 8,535 million, an increase of 10.4% compared to last year.

10 The decrease in net income for the fourth quarter, 2012 compared to the previous quarter, is attributed to the two main reasons above, and due to the increase of 4.6% in the cost of services for the 4th quarter compared to the immediate previous quarter.

11 - Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) for the 4th quarter amounted to SR 4,307 million compared to SR 5,021 million for the corresponding quarter last year with a decrease of 14.2%, and for the 12 months amounted to SR 20,305 million compared to SR 20,025 million for the corresponding period last year with an increase of 1.4% after adjusting the compared numbers.

12 - Revenue from services for the 4th quarter amounted to SR 14,993 million compared to SR 15,249 million for the corresponding quarter last year, with a decrease of 1.7%, and for the 12 months amounted to SR 59,372 million compared to SR 55,662 million for the corresponding period last year with an increase of 6.7% after adjusting the compared numbers.

13 The financial numbers for the 12 months were compared with the audited consolidated financial statements for 2011.cont.

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