Saudi Telecom Co (STC) has posted net profit of SR3.62 billion ($965 million) in the three months to December 31 against SR393 million in the prior-year period after it changed its accounting method for Aircel, a mobile operator in India.
STC’s full-year profit for 2013 rose to SR9.99 billion from SR7.28 billion a year earlier.
In December, STC changed its accounting method for its investment in India’s Aircel Group, backdating this to the second quarter of 2013.
This led STC, which competes with Etihad Etisalat (Mobily) and Zain Saudi, to reverse its share of loss of 795 million riyals from Aircel during April to September 2013.
Reuters reported that the better-than-expected profit will bolster investor confidence in the former monopoly coming after October’s surprise 73 percent jump in third-quarter profit.
Prior to that, write downs on foreign units and foreign exchange losses had sent earnings lower for three straight quarters.
