Mobily survives COVID-19 effects, VAT to have minimal impact: CFO

Etihad Etisalat Co. (Mobily) managed to survive the impact of the COVID-19 precautionary measures, as it maintained revenue growth in Q2 2020, CNBC Arabia reported, citing chief financial officer Khaled Abanami.

The telecom operator witnessed higher demand for data services, which are used in public and private entities and even in the remote learning for the retail segment.

Such strong demand helped Mobily offset the decline in turnout for other products, which were hit by the pandemic outbreak, Abanami indicated.

Mobily currently focuses on the local market amid the increasing demand of giant projects across the Kingdom and retail segment for the 5G coverage.

"The telco can grab bigger market share through network services. It targets higher-margin clientele which will boost profitability, and will also continue pursuing investments in all sectors along with infrastructure," Abanami noted.

"The value-added tax has no clear impact on the telecommunications sector so far," Abanami said, expecting a minimal impact given the government support to retail and corporate sectors.

Mobily reported SAR 185 million earnings in Q2 2020, compared to SAR 37.8 million in year-earlier period, Argaam reported.