MyAdhan Blog

Link: Saudi Arabia: Mobily profit surges 47pc to $119.5m

Etihad Etisalat (Mobily), Saudi Arabia’s second-largest mobile phone company by market value, reported a 47.4 per cent rise in second-quarter net profit, close to the top range of analysts’ forecasts. Mobily, an affiliate of Emirates Telecommunications Corporation, said the quarterly net profit was 448 million Saudi riyals ($119.5m), compared with 304m riyals in the same period last year. The earnings came close to the top range of analysts’ forecasts for Mobily’s second-quarter profit which ranged from 345m riyals to 486.4m riyals in a Reuters survey last month. Operating profit rose 24pc to 530m riyals on the back of a 25pc rise in revenues. Mobily said the rise in net profit was mainly the result of better mobile phone services and more sales outlets. Emirates Telecommunic-ations posted a 58pc jump in second-quarter profit on a capital gain it made after it reduced its stake in Mobily to 26.25pc from 35pc. The rise in Mobily’s second-quarter net profit compared with a 30pc annual increase in the first-quarter which came was both the smallest gain in quarterly profit since the firm started operations in 2005 and below all analysts’ forecasts. Mobily competes with Saudi Telecom Company, the second-largest Arab telecom firm by market value, for mobile phone users in the kingdom. Zain Saudi Arabia plans to start operations this year after selling shares to the public in the first quarter. Mobily, which did not release subscriber numbers, says it has a 39pc market share with 11.1m subscribers, its chief executive officer Khaled Al Kaf said earlier.