STC misses Albilad Capital’s Q2 forecast on higher expenses, Zakat

Saudi Telecom Co.’s (STC) Q2 profit (SAR 2.56 billion) fell short of Albilad Capital’s forecast as a result of the operator’s new retirement scheme, higher expenses and a Zakat provision that weighed on results.

The investment arm of Bank Albilad maintained an “overweight” rating on STC’s stock and left its target price unchanged at SAR 79.85.

Despite fierce competition during the period, STC recorded significant growth in services revenue, Albilad said in a report.

Last week, the kingdom’s largest mobile operator reported an 8.7 percent drop in second-quarter net profit, down from SAR 2.8 billion in Q2-2014.