GO Telecom reports net loss of SAR40.2m in 1Q15

4 Aug 2015

Saudi Arabian fixed line and broadband operator Etihad Atheeb Telecom (GO Telecom) has published its financial results for the three months ended 30 June 2015, announcing a net loss of SAR40.2 million (USD10.7 million), down from a net profit of SAR60.4 million reported in Q1 2014. The telco blamed the loss on higher sales and marketing expenses, as well as lower prices for broadband services, prompted by intense competition in the market. Moreover, in 1Q14 the telco completed the sale of property with a book value of SAR60.0 million, giving Atheeb a gain of SAR94.0 million (SAR63.4 million reflected in that quarter, with the remainder deferred). Etihad Atheeb’s revenues increased by 34.4% (or SAR21.3 million) year-on-year from SAR62.0 million to SAR83.3 million. GO Telecom highlighted that revenues generated by its business sector operations were up 7.0% y-o-y, while interconnection revenues increased 25%, to SAR8.6 million. Despite that, the company said that accumulated losses represented nearly 62.5% of the company’s capital as of June 2015, indicating ‘a significant degree of uncertainty, which may lead to substantial doubt about the company’s ability to continue operating’. As a result, GO Telecom disclosed that it has introduced new services – 4G Long Term Evolution (LTE) and fibre-to-the-home (FTTH) with downlink speeds of up to 200Mbps – in order to maintain its competitive position in the sector.

Saudi Arabia, Etihad Atheeb (GO Telecom)