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Tue 18 Oct 2011 07:26 PM

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Saudi's Mobily posts 8% rise in Q3 net profit

Telco says revenues in third quarter fell compared to Q2 as iPhone 4 sales slump

Saudi's Mobily posts 8% rise in Q3 net profit
A visitor takes pictures with his mobile phone as he stands next to an artwork to be auctioned off by Sothebys at Arts of the Islamic World during a preview exhibition at a hotel in Doha

Etihad Etisalat, the Saudi Arabian mobile telephone company also known as Mobily, on Tuesday posted an eight percent increase in third-quarter profit to SR1.2bn ($320m).

According to a statement to the Saudi bourse, net profit also rose five percent compared to the previous quarter.

It said net profit for the nine months period amounted to SR3.4bn, a growth of 23 percent.

Revenues for the third quarter amounted to SR4.6bn, up 16 percent on the same period in 2010 but down nine percent on the previous quarter.

Mobily said the drop in revenues was due to a reduction in sales of low-margin smart phones in the third quarter through its own sales outlets.

In addition, the company's sales of Apple's iPhone 4 declined with the customers anticipation of the new version of the device.

The company said data revenues increased by seven percent compared to the second quarter of this year, with the number of mobile broadband subscribers exceeding 6.3m by the end of the third quarter.

It added that despite the increasing competition in data services and international calls, the rise in net profit was "a result of the improved operational efficiencies".

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