Saudi's Mobily awards $280m IT contract

Five-year deal handed to IBM as it outsources its information technology operations
Saudi's Mobily awards $280m IT contract
(Photo for illustrative purposes only)
By Reuters
Sun 05 Aug 2012 05:52 PM

Saudi telco Etihad Etisalat (Mobily) has awarded IBM a five-year contract worth SR1.05bn ($280m) to outsource its information technology operations, it said in a bourse statement on Sunday.

The contract will be self-financed and will lead to improvements in Mobily's products as well as making the company more flexible, it said without further elaboration.

Mobily, which has a market value of $12.3bn and is the No. 2 operator in Saudi Arabia, reported a 22 percent rise in second-quarter profit to SR1.42bn last month, while its 2011 annual profit was SR5.08bn.

Parent firm Etisalat could increase its 28 percent stake in the telco, its chief executive told Reuters in July, as the UAE firm focuses its attention on high growth, high population countries like Saudi.

Shares in Mobily dipped 0.8 percent on Sunday, trimming year-to-date gains to 24.3 percent.

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