Saudi telcos seen to post 22% profit drop in Q2: forecasts

Saudi telecom operators are projected to report a combined profit decline of 22 percent year-on-year for the second quarter, according to data compiled by Argaam.

Saudi Telecom Co. (STC) is seen to fare the best, with an eight percent profit increase in Q2-2015, compared to SAR 2.803 billion in the same period last year.

On the other hand, Etihad Etisalat Co. (Mobily) is forecast to incur a SAR 542 million loss, against net profit of SAR 412 million in Q2-2014. The estimate would mark a year-on-year drop of 232 percent.

Mobily recently announced that it had increased provisions related to receivables from Zain Saudi Arabia by SAR 800 million. The provisions will take effect in second quarter results.

Zain Saudi is seen to record Q2 profit of SAR 253 million, which is 23 percent lower than the SAR 329 million it earned in Q2-2014.

Al-Rajhi Capital and NCB Capital issued forecasts for the three telecom operators.

Aljazira Capital and KSB Capital Group released estimates for STC, while Alistithmar Capital and Albilad Capital provided coverage on STC and Zain Saudi.

Argaam Reports