Mobily’s Q1 2020 results exceed expectations: AlJazira Cap

Logo of Etihad Etisalat

Etihad Etisalat Co.’s (Mobily) Q1 2020 net profit of SAR 130 million came above AlJazira Capital’s and consensus estimates of SAR 63 million and SAR 110 million, respectively. 

AlJazira Capital attributed the telco’s results to lower-than-expected finance cost and higher-than-expected revenue. 

The brokerage firm further expects the telecom operator’s revenues from the second quarter of 2020 to be negatively affected by the suspension of Umrah and Hajj. 

“However, we foresee strong revenue growth to continue in FY2020,” AlJazira Cap said. 

The company also anticipates Mobily’s net profit to increase to SAR 460 million in 2020 compared to SAR 31 million a year earlier.  

The brokerage firm maintained its “Neutral” recommendation, with a target price of SAR 22.10 per share.