Mobily, Zain KSA post strong Q2 results
Mobily posts record profit while Zain KSA cuts losses
Mobily and Zain Saudi Arabia have both announced increased revenues for the second quarter of the year, indicating that significant potential remains in the Saudi Arabian mobile sector.
Mobily, a division of UAE telco Etisalat, posted a 33% rise in Q2 net profit to SR901 million ($240m) compared to SR675 million for the same quarter of last year. The operator's revenue for Q2 rose by 10.9% to SR3.97 billion, which it said was the highest quarterly net profit since its launch in 2005.
Abdulaziz Alsaghyir, chairman of Mobily, attributed the company's overall increase in revenues to a rise in broadband revenues and postpaid customers, as well as an increase in the international interconnection margin.
Meanwhile, Zain Saudi Arabia also announced strong results, with revenues increasing by 107% in Q2 to reach SR 1.5 billion, compared to SR702 million in Q2 2009. The company reduced its net losses by more than 26% in Q2 to SR 632 million compared to SR 857 million during the same period in 2009, its lowest ever loss since it launched operations.
Saad Al Barrak, CEO and managing director, Zain Saudi Arabia, said the operator had been able to reduce the cost of local calls and "significantly increase" activities within its local network, leading to a reduction in its net loss.
Zain Saudi Arabia also decreased its operational costs and increased its revenues by expanding its infrastructure and increasing its efficiency, according to Al Barrak.
Al Barrak added that Zain Saudi Arabia was looking to expand its network to cover 93% of the populated areas of KSA by the end of 2010 as part of the second phase of its expansion plans.