Monday, Aug 27, 2012

--Saudi Telecom confirms resignation of international operations CEO

--International operations division will now report to STC's CFO

--Income from STC's international operations made up 32% of total group revenues last year

(Recasts. Adds details from Saudi Telecom statement, background.)

By Shereen El Gazzar

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Saudi Telecom Co. (7010.SA), or STC, said Monday it remains committed to its international investments and growth strategy after the chief executive of its global operations stepped down.

The telecoms firm, in an emailed statement, confirmed that Ghassan Hasbani is to leave the company at the end of October. The telco's international operations will report into group chief financial officer Krishnan Ravi Kumar from Sept. 1 until a permanent structure is identified.

"Our international operations have continued to grow stronger consistently over the last four years and we remain committed to our international strategy and vision for growth as we move ahead," STC's group CEO Khaled Al Ghoneim said.

Saudi Arabia's largest telco is increasingly looking beyond the kingdom for earnings growth. It has targeted regions such as Africa and Asia as competition in its domestic market from the likes of Etihad Etisalat (7020.SA), or Mobily, and Zain Saudi (7030.SA) heats up. According to STC's website, it now has a presence in Kuwait, India, Indonesia, Malaysia, Turkey and South Africa.

Mr. Hasbani told Zawya Dow Jones earlier Monday that his contract had ended with STC and he had decided not to renew it.

"I came to build the international operations division (of STC) and I did that. Now its time to move. I will be announcing my plans in due course," Mr. Hasbani said.

According to the company, in 2011, income from its international operations made up 32% of total group revenue.

Saudi Telecom shares last traded 0.3% higher at SAR39.0.

-By Shereen El Gazzar, Dow Jones Newswires, +9714 446 1684 shereen.elgazzar@dowjones.com; Twitter: @ZDJnews

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

27-08-12 0911GMT