GO Telecom 1H14 profit on the rise following STC deal; Mobily requests temporary suspension of share trading

30 Oct 2014

Saudi Arabian fixed line and broadband operator Etihad Athleeb Telecom (GO Telecom) has published its financial results for the six months ended 30 September 2014 (1H 2014), announcing a net profit of SAR25.15 million (USD6.80 million), up from a reported net loss of SAR112.22 million in the corresponding period of 2013; the telco said the improvement was due to a SAR117 million marketing agreement signed with domestic operator Saudi Telecom Company (STC), a rise in profits from the sale of international call cards and the sale of property with a book value of SAR60 million, giving GO a gain of SAR176 million. GO’s gross profit however decreased by 49.12% year-on-year to SAR10.39 million, up from SAR20.42 million in 1H13, while operating profit was down by 35.6% to SAR148.4 million. Meanwhile, GO’s revenues remained at SAR113.2 million in 1H 2014, despite a decline in broadband service revenues which was partly offset by 37% increase y-o-y in retail service revenues. Business sector revenues increased by 48% to SAR12.25 million in the six months to end-September 2014, while interconnection revenues reached SAR12.19 million, up 54% y-o-y.

In a separate news, Etihad Etisalat (Mobily), Saudi Arabia’s second-largest cellco in terms of subscribers, has requested temporary suspension of the trading of its shares from the Capital Markets Authority (CMA). The company has requested the suspension due to an imminent meeting of its audit committee which will ‘consider significant matters relating to its financial statements’.

Saudi Arabia, Etihad Atheeb (GO Telecom), Mobily (Etihad Etisalat)