Riyadh - Mubasher: Al-Rajhi Capital Research has kept Etihad Etisalat Company (Mobily) ‘Under Review’, saying that the company’s results for the third quarter of 2016 were opposite its expectations.
Mobily posted a net loss of SAR 168 million for Q3-16, while Al-Rajhi Capital’s and consensus estimates were a net profit of SAR 12 million.
In its report released on Sunday, the research firm stated that Mobily’s results for Q3-16 shows that it could take much longer for the company to pull out of its past woes especially given the tougher environment, lower disposable income and increased competition.
Mobily’s bottom-line is unlikely to materially change from this level, unless it can undo the impact of cancellations because of the fingerprint regulatory exercise, the report said.
Al-Rajhi Capital expected Mobily to launch a lot of newer products with aggressive pricing to gain back some market share to soothe investor sentiments, an impact which could be reflected in Q4-16.
