Riyadh – Mubasher: Albilad Capital expects the operational performance of Etihad Etisalat (Mobily) to "improve" in the second quarter of 2017. 

The research firm stated some reasons for its anticipation, including demand for telecommunications services to peak during the holy month of Ramadan, which will coincide with Q2-17.

The slump in inter-bank interest rates (SIBOR), in addition to non-recurring financing expenses of SAR 42 million in Q1-17 would also contribute to an improved performance.

Moreover, Albilad Capital noted that Mobily seeks to reduce operating expenses to enhance profit margins, to mitigate the slowdown in the top line and the intense market competition.

Albilad Capital lowered the fair value (FV) of the share from SAR 24 to SAR 21.2 per share, with a “Neutral” recommendation.

Mobily suffered losses of SAR 163 million in Q1-17, against profits of SAR 20 million in Q1-16.