Executive Summary - Al Rajhi Capital - Ø§Ù„Ø±Ø§Ø¬ØÙŠ Ø§Ù„Ù…Ø§Ù„ÙŠÙ‡

More documents

Recommendations

Info

Telecommunication & Information Technology The financial data for the Telecom and Information Technology sector shows that the sector’s net profits for the third quarter of the current year retreated by 17.6 % YOY and stood at SR 2.4 billion. Similarly, the first nine months data also revealed a drop in net profits of 12.1% from SR11.2 billion to SR 9.8 billion. The sector’s companies performance shows that Saudi Telecom. (STC), the second largest listed company in the Saudi Stock Market, in terms of market cap., witnessed a drop in its net profits during the third quarter of 20% year-onyear to SR 2.4 billion. Moreover, its profits for the nine months period dropped by the same percentage to SR 7.9 billion. The Company attributed these declines to the capital investments carried out by its subsidiaries aiming at increasing their market shares in the countries where these companies have investments. STC’s explanation says nothing about why revenues in Q3 declined by 4.5% y-o-y Q3 after growth of 5.4% y-o-y in Q2 – a result which continues to perplex us. STC announced that the number of its subscribers increased by 7% whereas the number of the broadband subscribers jumped by 38%. In addition, the number of third generation internet subscribers reached more than one million. Consequently, the total number of the broadband subscribers, both in the fixed-line wire and wireless categories, exceeded 2.3 million while the total number of active customers in the mobile segment exceeded 20 million. On the other hand, the financial data of the second mobile and internet operator, Etihad Etisalat Co. (Mobily), were better than expected as the Company managed to record strong growth in profits for the third quarter and growth for the first nine months of 50%. Mobily attributed this increase to the continuing rapid growth in the number of post-paid subscriptions and expansion in the coverage of the third generation service through the addition of new cities, which contributed significantly to increasing the number of mobile broadband and data services subscribers. The third service provider, Zain Co., also incurred losses in the third quarter of the current year that exceeded its losses for the previous year by more than 26%, mainly caused by the growing operational expenses. The Company’s results for the nine months period have been excluded because there are no comparable periods. The sector’s growth rates and profit margins may be negatively affected now that reported mobile penetration has exceeded 150%. Therefore, STC is looking to achieve growth outside Saudi Arabia, while Mobily and Zain are hoping for further expansion in the mobile data segment in particular in order to maintain future growth.
Company Q3 (Net Profit, SAR) % 9months (Net Profit, SAR) % EPS(9months) 2008 2009 2008 2009 2008 2009 SAUDI TELECOM CO 3,012,000,000 2,403,000,000 -20.2% 9,881,000,000 7,881,000,000 -20.2% 4.94 3.94 ETIHAD ETISALAT 539,000,000 807,000,000 49.7% 1,314,000,000 1,962,000,000 49.7% 2.63 2.80 ZAIN KSA )649,000,000) )820,000,000) -26.3% - - - - - Sector 2,902,000,000 2,390,000,000 -17.6% 11,195,000,000 9,843,000,000 -12.1% - -
Page 1: www.alrajhi-capital.com Third Quart
Page 4 and 5: Executive Summary The financial res
Page 6 and 7: Banks & Financial Services Notwiths
Page 8 and 9: Company Assets % Deposits % Loans 2
Page 10 and 11: Petrochemical Industries Despite th
Page 12 and 13: Cement The Cement sector is still a
Page 14 and 15: Retail The preliminary financial re
Page 16 and 17: Energy & Utilities The financial re
Page 18 and 19: Agriculture & Food Industries The p
Page 22 and 23: Insurance Some of the listed insura
Page 24 and 25: Multi- Investment The financial ann
Page 26 and 27: Industrial Investment The third qua
Page 28 and 29: Building & Construction The third q
Page 30 and 31: Real Estate Development The decline
Page 32 and 33: Transport The third quarter prelimi
Page 34 and 35: Media & Publishing The Media & Publ
Page 36 and 37: Hotel & Tourism The third quarter p
Page 38 and 39: Contact Details Hesham AL-Muhanna I

Executive Summary - Al Rajhi Capital - Ø§Ù„Ø±Ø§Ø¬Ø­ÙŠ Ø§Ù„Ù…Ø§Ù„ÙŠÙ‡

Create successful ePaper yourself

Delete template?

Save as template?

Executive Summary - Al Rajhi Capital - Ø§Ù„Ø±Ø§Ø¬ØÙŠ Ø§Ù„Ù…Ø§Ù„ÙŠÙ‡