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Saudi Telecom Co. reported a nearly flat net profit of SAR2.83 billion ($753.1 million) for the second quarter of the year, as impairment charges relating to associates, taxes and zakat rose.
The earnings came below analysts' mean estimate of SAR2.97 billion, according to data provider Refintiv.
The Riyadh-listed company, in which Saudi Arabia's government holds a 64% stake through Public Investment Fund (PIF), also said the board had proposed a dividend of SAR1 or 10% per share, for a total of SAR1.99 billion.
STC said Q2 sales revenue rose nearly 7% to SAR17 billion, but it was offset by the increase in cost of revenues and operating expenses by SAR218 million and SAR353 million, respectively.
Total other expenses increased by SAR365 million mainly due to the booking of net share in results and impairment of investments in associates and joint ventures for an amount of SAR283 million versus SAR39 million a year earlier.
The telecom company recorded an impairment of SAR298 million related to its BGSM investment in Malaysia, it said.
Zakat and income tax expense increased by SAR62 million.
Half-year net profit came in 12% higher year-on-year at SAR5.87 billion.
(Reporting by Brinda Darasha; editing by Cleofe Maceda)
