Al-Bilad Capital stated in report that Saudi Telecom Co.’s (STC) financial results for the first quarter of 2014 showed significant gains when compared to the first quarter of 2013.

The telecom operator has however seen substantial falls in profits when compared to the previous quarter.

The research firm expected STC to continue recording profit growth on the back of increase of expected growth of first half earnings compared to the same period of last year.

Al-Bilad recommended ‘Neutral’, setting the stock’s fair value at SAR 63.50.