Saudi Telecom Company posted a 22 per cent increase in fourth-quarter net profit as its revenues rose and the cost of services declined after a government agreement to change royalty fee calculations.
The telecom operator's net profit reached 3.16 billion Saudi riyals (Dh3bn) in the three months to December 31, STC said on Thursday in a statement to the Saudi stock exchange. Fourth-quarter revenues rose 5.3 per cent to 13.16bn riyals.
The results reflect the "strong and continuous" performance of the company as it works to expand its business, diversify its portfolio and enhance the integration between the group and its subsidiaries for sustainable growth, Nasser Al Nasser, group chief executive of STC said.
The kingdom's biggest telecom company said in December its fourth-quarter earnings will get a boost from an agreement with the Saudi government that will see annual royalty for commercial services dropping retroactively from 15 per cent to 10 per cent of net revenues starting January 1, 2018. Last month, the kingdom's three major telecom operators, STC, Etihad Etisalat (Mobily) and Zain Saudi Arabia agreed with the government to change the calculation of their annual royalty fees.
STC's fourth-quarter net profit beat one analyst estimate of 2.98bn riyals, according to Bloomberg data.
The cost of services declined by 640 million riyals due to the changes in the mechanism for calculating royalty fees for commercial services, the company said on Thursday.
STC recorded a 7.7 per cent increase in annual net profit to 10.79bn riyals because of a 2.7 per cent increase in yearly revenues to 52bn riyals.
The company's board of directors approved a dividend policy starting from the fourth quarter of 1 riyal per quarter for the next three years, with the possibility of paying additional dividends depending on the company's financial position and capital requirements, it said.
The board recommended the distribution of additional dividends of 2 riyals per share for 2018, which will be presented at the next general assembly meeting for approval.
The dividends that will be distributed for 2018 amount to 12bn riyals.
Stree
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UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
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THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
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The view from The National
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
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Price, base: Dh840,000; Dh120,000
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Power: 509hp @ 6,000rpm; 601hp @ 7,500rpm
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The Birkin bag is made by Hermès.
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
