Riyadh – Mubasher: Companies listed under the telecom sector on Saudi Stock Exchange (Tadawul) posted SAR 2.05 billion in combined profits for the first quarter of 2015, a decline of 44.4% from SAR 3.68 billion in corresponding quarter.

The results were hurt by Mobily that turned from profitability (SAR 1.6 billion) to loss (SAR 199 million). However, the profits decline was partially offset by the rise STC’s earnings by 4.7%, while Zain KSA cut losses by 19.2%.

Zain and STC stocks achieved positive operating performance, as the former slashed operating losses by nearly half, while the latter posted 26.78% growth in operating profits. Mobily’s operating results turned to profitability.

Zain is primed to turn to profits through cutting expenses such as in advertising, said Ahmed Aldaiij, capital market analyst.

The telecom firm’s stock is expected to head north, targeting SAR 17.35 in the medium term, said the analyst, adding that a break above SAR 10.60-11.05 will take the index higher towards strong resistance at SAR 12.65 and SAR 14.10. The stock currently trades at SAR 11.70.

Translated by Sayed Abdel Rahman