Riyadh - Mubasher: Al Rajhi Capital is expecting the revenues of the Saudi telecom sector to increase in the second quarter of 2017, on the back of reinstatement of public sector employee salaries.
Zain is better positioned than its peers in the Saudi telecom sector, in terms of gaining market share and witnessing profit growth, the research firm added in a new report published on Tuesday.
“Zain KSA continued to post healthy revenue growth and improved margins, resulting in its first quarterly profit in Q1-17,” the report indicated.
Al Rajhi forecasts revenues of nearly SAR 1.9 billion for Zain in Q2-17, compared to SAR 1.7 billion in the same quarter of last year, with profits expected at SAR 30 million versus losses of SAR 329 million in Q2-16.
Mobily is expected to see a slight decline in revenues after a relatively weak performance in the last six quarters, with losses expected to total SAR 145 million in Q2-17 against profits of SAR 19 million in the corresponding quarter of the year before.
Al Rajhi also expects the revenues of Saudi Telecom Company (STC) to go up from SAR 1.9 billion to SAR 2.4 billion in Q2-17.
