Data And Efficiency Improvement Shape Mobily and Zain's Q213 Results
Mobily and Zain KSA announced their Q213 results on July 18 2013. While Mobily reported strong growth, with net profits rising 13% y-o-y to SAR1.6bn (US$426.6mn), Zain posted a net loss of SAR370mn (US$98.6mn), although still an improvement on a net loss of SAR394mn in the same period last year. Zain is making a concerted effort to improve its bottom line finances, which has largely hindered its competitiveness compared to its two bigger rivals STC and Mobily.
Mobily reported total quarterly revenues of SAR6bn (US$1.6bn) for Q213, a quarter-on-quarter rise of 6%, and an increase of 5% compared to the same period in 2012. The operator also reported exceptional growth in LTE and fibre-optic segments, with revenues from those services increasing by 89% in the first half of 2013. This demonstrates the market's move towards advanced data services following the saturation of the voice market.
As well as increased uptake of data services, we believe Mobily's strong quarterly results come on the back of its aggressive pursuit of high-value clients in the public and business sectors. The most notable of these is a contract to build, operate and maintain communication networks in the King Abdullah Economic City (KAEC), which is the largest and one of the most important of the four planned economic cities in Saudi Arabia (See 'Key Developments Prepare Mobily For Future Outperformance', July 4 2013).
|Data Drives Growth|
|Saudi Arabia Mobile, 3G & 4G And Broadband Subscriber Forecasts, 2010-2017|