Mobily to honor commitments and reach settlement with creditors, says chairman

Mobily, Saudi Arabia's second-largest mobile operator, is currently negotiating with banks to reach a settlement on its debts, Sulaiman al-Qwaiz, the company’s chairman said in an interview with CNBC Arabiya.

He added that he remained confident that a deal would soon be reached and said the company has made considerable headway on repaying its debt. The company paid out SAR 872 million in financial commitments during the first quarter of 2015, after already settling SAR 2 billion last year.

Al-Qwaiz attributed the 29 percent drop in revenue during the first three months of this year (Q1) to non-recurrent receipts. The company took provisions because it was very cautious about the possibility of clients defaulting, he added. 

Mobily posted a SAR 199 million loss in the first quarter, compared with a SAR 1.6 billion profit in the same period last year.