Saudi Telecom Co (STC), the Arab world's largest telecom company by market value, posted a better-than-expected 154 percent rise in fourth-quarter net profit, partially helped by capital gains. STC made SR2.94 billion ($784 million) in the three months to the end of December, compared to SR1.16 billion a year earlier, the state-controlled firm said in a statement. This was more than the highest forecast in a Reuters survey of analysts, which ranged from SR1.8 billion to SR2.79 billion. STC said it netted SR684 million from the flotation in November of a 25 percent stake in Malaysia's Maxis Bhd . However, annual earnings per share, fell 2 percent to SR5.41. Operating profit also fell 8.2 percent to SR2.59 billion during the fourth quarter, which this year coincided with the annual Haj pilgrimage and the arrival of almost 1.5 million visitors from abroad, many who used Saudi mobile phone networks. STC's full-year operating profit fell 16.8 percent to SR12.76 billion. The firm said revenue from operations exceeded SR50 billion in 2009 but did not give an exact figure. Based on this figure, annual growth in operating revenue would have been about 5.3 percent in 2009, down from 38 percent it reported for 2008. STC's board proposed to give shareholders a dividend of SR0.75 per share for the fourth quarter, bringing the overall dividend payout for 2009 to SR3, down from SR3.75 it distributed in 2008. STC is under intense pressure to sustain its profitability growth as a telecom war has been heating up in the region with such rivals as Kuwait's Zain and Emirates Telecommunications. STC spent about $3.5 billion in 2008 to buy a 35 percent stake in Oger Telecom and a 26 percent stake in Kuwait's third mobile phone license.
