Saudi Telecom Company (STC)’s CEO for its domestic operations has resigned, in the wake of the Saudi telco’s lacklustre year-end results which were announced last month.
A company spokesperson announced Jameel Abdullah al-Molhem’s departure on…
Saudi Telecom Company (STC)’s CEO for its domestic operations has resigned, in the wake of the Saudi telco’s lacklustre year-end results which were announced last month.
A company spokesperson announced Jameel Abdullah al-Molhem‘s departure on Sunday, according to Reuters.
Molhem is the latest senior executive to leave the company, following international CEO Ghassan Hasbani’s resignation in August 2012 and group CEO Saud Al-Daweesh’s departure last April.
No reason has been given for al-Molhem’s departure and STC did not respond to TelecomFinance in time for the deadline.
“STC’s senior management has entirely changed in recent times,” an analyst with knowledge of the company told TelecomFinance today. “This latest resignation highlights that the company is still going through a lot of restructuring. They’re in transition, but they’re not being open about their strategy.”
The analyst commented that STC’s international operations were not doing very well but their domestic operations were showing signs of improvement. However, he added that the upcoming entry of MVNOs to the market could put more pressure on existing operators.
STC announced its fourth quarter and full-year financial results to the Saudi stock exchange on 21 January. The telco reported net income of SR468m (US$124.8m) in Q4 compared to SR2.28bn (US$607.4m) in the same quarter the previous year, a decrease of 79%. For the full year, STC announced net income of SR7,35bn (US$1.96bn) for 2012 compared to SR7.73bn (US$2.06bn) in 2011, a decrease of 4.9%.
The company attributed the decrease to one-time impairment costs and tax charges for various international operations.
