Saudi Arabia's Etihad Etisalat Co. (Mobily) posted a 7.6 percent rise in third-quarter net profit on improved operational efficiency and higher data revenue. In a statement posted on the Saudi bourse website, Saudi Arabia's No. 2 telecoms company by market capitalization and an affiliate of UAE's Etisalat, said net profit reached SR1.22 billion ($326.4 million), compared with SR1.14 billion a year earlier. Earnings per share for the first nine months of the year totaled SR4.84, up from SR3.93 a year earlier, while third-quarter operating income rose 7 percent to SAR1.27 billion. Revenue for the third quarter amounted to SR4.64 billion, up from SR3.99 billion a year earlier, but down from the SR5.13 billion seen in the second quarter of this year. The revenue fell quarter-on-quarter as Mobily reduced its sales of low-margin smart phones. Mobily's EBITDA (earnings before interest, tax, depreciation and amortization) margin rose to 39 percent in the third-quarter, up from 34 percent in the preceding three months, but competition in data services and international calling is increasing, it said. The firm's sales of “iPhone 4, in particular, declined with the customers anticipation of the new version of the device,” it said. The firm is building networks than run on long-term evolution technology, which allows high-speed data transfers, to cope with rampant growth in data traffic from smart phones. The service, which was launched mid-September, is expected to cover more than 32 cities and governorates.
