Etihad Etisalat Co.’s (Mobily) net profit of SAR 51.1 million for Q3 2019 came in-line with Aljazira Capital’s estimates, the research firm said in an earnings review.
Bottom-line improved on strong topline, higher margins on revised government fee, and the rationalizing of other operating costs (SG&A), it said.
Revenue stood at SAR 3.4 billion for the quarter, which met the forecast, attributed to a rise in subscriber base and an improving subscriber mix, data revenue growth, and FTTH and wholesale revenue growth.
“We believe the current revenue mix makes the company less susceptible to core retail downturn. In addition, successful roll out of FTTH network will bode well for future revenue growth,” Aljazira Capital said.
Margins improved on all levels; gross margin stood at 59.2 percent, as the revised royalty fee started impacting the cost.
Aljazira Capital revised its estimates for fiscal year 2019 downward by 11.3 percent to SAR 225.7 million.
It maintained a “Neutral” recommendation on the stock, with a target price of SAR 22 per share.
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