Atheeb Telecom replaces CEO
Atheeb Telecom's CEO resigns following poor financial results
Saudi Arabian WiMAX operator Atheeb Telecom has appointed Raed Kayyal as acting CEO following the resignation of Ahmad Abbas Sindi.
Sindi, who had been CEO since the company was established in 2008, resigned last week following poor financial results at the firm.
The company, which offers fixed broadband and voice services, has accumulated losses of almost 40% of its capital after starting operations in June 2009, according to a report from Reuters.
In May, the company posted net losses of SR379 million ($101 million) for the year to March 2010, with sales of only SR35.4 million, which is below half the cost of sales themselves, the report added.
Atheeb Telecom is backed by Saudi Arabia's Atheeb Group and Bahrain's Batelco, which has a 15% stake in the company. The remaining 35% of the company was divided between an IPO and a Saudi retirement fund before the company launched.
Atheeb's failure to generate sufficient revenue underlines the problems faced by WiMAX operators in some markets.
Atheeb, which operates under the brand name ‘Go' launched services in one of the Middle East's most competitive ISP markets. The company is currently competing with three mobile operators, each of which offer mobile broadband services, as well as fixed services from incumbent operator STC.