Strong Private Consumption Boost Operators’ Q112 Results

Saudi Arabia's three mobile operators reported strong financial results in Q112, benefiting from increased usage of high-value services. Incumbent STC recorded a 12% and 60% y-o-y growth in consolidated revenue and net income respectively, while Etihad Etisalat (Mobily) recorded 12% and 21% y-o-y growth in revenues and profits for its Saudi operations. Although third-ranked Zain KSA is still in the red in terms of profits, the operator cut its losses by 18% in Q112 compared to Q111 after a 3% y-o-y revenue growth in the same period. These results are in line with BMI's positive outlook for the Saudi telecoms and overall ICT market, which we expect to benefit from strong public spending and private consumption in that country.

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