Riyadh – Mubasher: Albilad Capital expected that the revenues of Etihad Etisalat (Mobily) would decrease in the first quarter of 2017, due to the enforcement of fingerprinting documentation reduced interconnection rate ceiling.
The research firm also forecasted an improvement in cost cutting as well as lower depreciation and amortization.
Mobily suffered losses of SAR 70.7 million during the fourth quarter of 2016 against profits of SAR 10.6 million in the same quarter a year ago; however, the net loss came lower from expectations.
The company's bottom line missed our loss estimate of SAR 102 million, and the market consensus of SAR 105 million, Albilad Capital added.
Albilad Capital set the fair value of the company at SAR 24.2, with 7% expected return, compared to the closing level of the stock at the end of Sunday’s trades at SAR 22.61, with “Neutral” recommendation.
