Listed telecom firms’ profits down 44% to SR2bn in Q1

27/04/2015 07:11 AST

Profits of the listed telecom firms dropped by 44 percent to SR2 billion in the first quarter of the current year compared to SR3.6 billion in the same period last year, according to a financial report.

Results of the Q1, 2015, are considered the worst quarterly performance in a two-year period (Q4 2012) when the telecom sector posted net profits of SR1.8 billion at the time, says the report filed and analyzed by Al-Eqtidadiah daily.

Year-on-year basis, profits of the Saudi Telecom Company (STC) grew by 5 percent to reach SR2.5 billion in Q1 compared to SR2.4 billion in Q1, 2014, the report said.

The company attributed the profit growth to the increase of revenues in Q1 at SR1.3 billion, or 21.5 percent, and decrease of zakat and tax provisions by SR123 million compared to figures of the same period last year, according to the report.

Meanwhile, Etihad Etisalat (Mobily) registered losses worth SR199 million in Q1 compared to profits of SR1.6 billion in the same period last year. The company attributed its losses to additional depreciation expenses at SR250 million as well as increase of provisions of bad debts and fall in data revenues, the report said.

On the other hand, Zain Saudi Arabia has its losses narrowed by 19 percent to SR257 million in Q1 compared to SR318 million in Q1, 2014. The company attributed loss cuts to the improvement of operating performance and cuts in operating losses by 54 percent.

The company said its revenues grew by 9 percent to SR1.67 billion in Q1 compared to SR1.54 billion in Q1, 2014 due to demand on its products and services, the report said.

Likewise, Etihad Atheeb Telecommunication Company (GO) has its losses trimmed by 51 percent to SR34 million in Q1 compared to SR69 million in the same period last year.

The company attributed loss cuts to a series of reasons, including increase in operating revenues where service revenues rose by 27 percent to SR73.5 million in Q1 compared to SR57.7 million, the spread of broadband for mobile services and decrease of depreciation expenses, the report said.

Arab News