Saudi Cable seeks to get back on track, may swing to net profit in 1-2 years: Chairman

Saudi Cable Co. seeks to regain its market share, complete its restructuring strategy and get back on track, CNBC Arabia reported, citing Chairman Meyassar Anwar Nowailati.

"The company may be able to report operating profit by Q1 2021 instead of previous forecasts of year-end, and may swing to net profit in one or two years," stated Nowailati.

The company's board of directors, since the start of its three-year term, mapped out a clear plan to help it swing to profitability, Nowailati said, adding that the plan is running as scheduled, but may be delayed a bit due to the COVID-19 outbreak.

"Two years and half now, we are trying hard to get on track and regain our leading market position. Nevertheless, high leverage and our losses over the past years weighed heavily on the working capital," Nowailati indicated when asked about the company's losses in Q1 2020.

However, Saudi Cable's capital increase may have a significant impact on the company's Q2 2020 financials, he noted.

Saudi Cable signed, on June 1, a credit facility rescheduling agreement with its last commercial lender, Al Rajhi Bank, for a value of SAR 264.2 million. This will help the company financing its working capital requirements and dealing with other lenders in the near future.

Saudi Cable widened losses to SAR 43.2 million in Q1 2020, versus losses of SAR 32.1 million in year-earlier period.

The company also increased capital from SAR 110.6 million to SAR 360.6 million, via a rights issue, Argaam reported.