Riyadh – Mubasher: The Saudi Telecom Company (stc) gained net profits of SAR 2.72 billion during the second quarter (Q2) of 2020, posting an annual decrease of 4.35%.

Revenues for the period ended on 30 June grew by 9.67% to stand at SAR 14.92 billion, compared with SAR 13.60 billion in the same period a year ago, according to a bourse statement on Wednesday.

The slump in the second quarter's earnings is mainly due to a rise in gross profits by 1.63% or SAR 134 million that was offset by an increase in revenue costs by 21.9% or SAR 1.18 million.

Moreover, operating expenses surged by 11.6% or SAR 549 million, owed to an increase in the firm’s general and administrative expenses by SAR 254 million, coupled with higher selling and marketing expenses as well as depreciation and amortisation expenses by SAR 193 million and SAR 101 million, respectively.

stc further approved distributing SAR 2 billion worth of cash dividends to shareholders for Q2-20, equivalent to SAR 1 per share or 10% of the share’s par value.

Eligibility of dividends will be to the shareholders at the end of Tuesday, 28 July, as per the registered shareholders in the register of the Securities Depository Center Company (Edaa) at the end of the second trading day following the due date.

The distribution will take place on 25 August.