Etihad Etisalat Telecommunications Co.’s (Mobily) second-quarter net profit (SAR 18.8 million) beat Riyad Capital’s estimate of SAR 3 million, the brokerage firm said in an earnings review.
The profit beat was primarily due to expanding gross margins—which were at a three-year high, the report said.
“Sequential growth in bottom line since Q4-2015 is an encouraging sign going forward,” the brokerage firm added in its report.
Net current liability stands at SAR 12 billion versus SAR 19 billion last year and has managed to draw an “emphasis of matter” by the auditors while management expects to be able to meet its obligations when they become due, the review said.
Riyad Capital maintained its ‘neutral’ rating on Mobily with a target price of SAR 29 per share.
Mobily swung to a net profit of SAR 35.4 million for H1- 2016 compared to a net loss of SAR 945.4 million in the same period last year.
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