Displaying items by tag: financial results
Ericsson published its financial results for Q3 2019, reporting 3% percent growth in sales. Total sales were SEK 57.1 billion(b)., equivalent to AED 21.5 b. Sales adjusted for comparable units and currency increased by 3% driven by strong growth in North America and North East Asia.
For Q3 19, operating income was impacted by cost provisions of USD -1.2 b. (SEK -11.5 b.) corresponding to a margin of 11.4% excluding restructuring costs, the US investigation costs of USD -1.2 b. (SEK -11.5 b.) and the refund of social security costs of SEK 0.9 b.
Ericsson previously communicated that its third-quarter 2019 results will be impacted by a 12 billion Swedish krona provision. This is due to the investigations by U.S. authorities.
Net income suffered a SEK -6.9 b. loss, also negatively impacted by the investigation.
Free cash flow before M&A was SEK 5.5 b., showing a strong financial position.
Gross margin excluding restructuring charges was 37.8% (36.9%) with improvements in Managed Services, Digital Services and Networks. The gross margin in the previous quarter was 36.7% and 36.9% last year.
Strategic contracts in Networks, with initially low margins, taken to strengthen the market position, are expected to have a somewhat increased negative impact on gross margin short term without jeopardizing the 2020 target.
Ericsson has played a pivotal role in the advancement of 5G technology. Large 5G deployments in China are expected to commence in 2020. Ericsson has invested in R&D and supply chain capacity, aiming to increase market share. Based on historic experience margins are initially challenging but turn positive over the lifespan of a contract.
Commenting on the results, to Börje Ekholm, President and CEO of Ericsson said:
“We continue to see strong momentum in our business, based on the strategy to increase our investments for technology leadership, including 5G… Our focused strategy, introduced in 2017, is aimed at building a stronger Ericsson longer term. With clear focus on our operator customers the strategy stands on a foundation of increased investments in R&D for technology and cost leadership, and growing market footprint. Increased R&D efforts, which will continue, have resulted in a competitive portfolio driving improved gross margin.”
He added, “An important indicator for our execution of the strategy is the improvement in gross margin. The gross margin in the quarter ended at 37.8% compared with 36.9% last year and 36.7% last quarter. Within the 0.8 percentage point sequential decline in Networks gross margin, we have absorbed the margin impact and inventory provisions related to strategic contracts.”
In the report, Börje Ekholm believes their success is driven by the adopters of 5G. He also announced that 5G has taken off earlier than expected.
“5G is taking off faster than earlier anticipated and we see initial 5G buildout as a capacity enhancer in metropolitan areas. However, over time, new exciting innovations for 5G will come with industrial and IoT use cases, leveraging the speed, latency and security characteristics of 5G. This provides opportunities for our customers to capture new revenues as they provide additional benefits to consumers and businesses.”
“Our IoT business is growing almost twice as fast as the estimated market growth of 20-25% per year. We have more than 4,500 enterprises on our IoT platform and the number of connected devices on the platform has more than doubled year to date. To fully leverage our position and capture new recurring revenue streams we are increasing our investments in IoT within Emerging Business. With this investment, we do not expect to reach breakeven for the segment next year, and instead incur losses of SEK -1.5 to -2.0 b”
TELUS Corporation today released its unaudited results for the third quarter of 2018. For the quarter, the operator consolidated operating revenue of $3.8 billion increased by 11 per cent over the same period a year ago.
This growth was driven by higher wireless network and equipment revenues, wireline services revenue growth and higher other operating income resulting from our share of the non-recurring equity income related to real estate joint ventures of $171 million arising from the sale of TELUS Garden. Excluding this equity income consolidated operating revenue increased by 5.8 per cent.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 8.2 per cent to $1.3 billion due to higher revenue growth as referenced above and improved wireless equipment margins.
This growth was partly offset by incremental employee benefits expense due to recent business acquisitions and increased costs to support our growing customer base. Adjusted EBITDA was up 6.4 per cent when excluding the net gain from the sale of TELUS Garden, as well as restructuring and other costs, which included our committed donation of $118 million to the TELUS Friendly Future Foundation.
“TELUS reported strong operational and financial results for the third quarter, including robust customer growth across both the wireless and wireline segments of our business. This was buttressed by a continued excellent performance in wireless and wireline customer loyalty and lifetime revenue,” said Darren Entwistle, President and CEO. “Importantly, the TELUS team continues to achieve industry-leading postpaid wireless churn, and realized record third quarter high-speed Internet and TV retention levels. This performance was driven by our team’s relentless focus on providing exceptional customer experiences, and was anchored by the ongoing generational investments we are making in our leading broadband wireline and wireless networks, both of which are hallmarks of TELUS’ successful, long-term growth strategy.”
Mr. Entwistle added, “The efficacy of our broadband technology investments is reflected in TELUS, once again, being named as having the fastest mobile network in Canada by PCMag. This repeat acknowledgement builds on our outstanding record of achievement with respect to network excellence, having already earned the top spot in all major mobile networks reporting this year, including Ookla, J.D. Power and OpenSignal. These leading network rankings, each received consecutively for two or more years, reinforce the consistent superiority of TELUS’ broadband networks available to citizens across the country.
Mr. Entwistle further commented, “Our dividend increase announced today, on the back of our 41 per cent free cash flow growth, reflects the sixteenth increase since 2011, and is the fourth in our most recent three-year dividend growth program, targeting annual growth between seven and 10 per cent through 2019. This builds on our proven track record of providing investors with the industry’s best multi-year dividend growth program, which continues to generate significant value for our shareholders. Notably, TELUS has now returned $16 billion to shareholders, including $10.8 billion in dividends, representing $27 per share since 2004. We look forward to updating investors on the progression of this program at our 2019 annual general meeting.”
Doug French, Executive Vice-president and CFO said, “For the third quarter of 2018, TELUS delivered positive operational and financial results, reflecting the strength of our multiple product and valued service offerings, our commitment to customer service excellence and our network superiority. Our strategic capital investments are clearly paying off, as evidenced by our strong subscriber and loyalty results, and position us to maintain our network leadership as we progressively move towards the arrival of 5G.”
Mr. French added, “As we head into the seasonally important final quarter of 2018, we remain focused on executing against our strategy, amplifying our efforts on cost efficiency, focusing on margin accretive customer growth and investing to support our growth strategy. Today we are raising our full year 2018 assumption for restructuring and other costs, including an additional $50 million targeted towards further streamlining our business and enhancing our effectiveness in serving our growing customer base. This additional investment in restructuring, to be recorded in the fourth quarter of 2018, is expected to deliver annual cost savings of more than $50 million beginning next year. Meanwhile, our net debt to EBITDA leverage ratio continues to improve, putting us in good position for 2019.”
Qualcomm Incorporated announced results for its fiscal fourth quarter and year ended September 24, 2017. The company reported revenues of $5.9 billion for Q4 2017 compared to $6.2 billion in Q4 2016 (5 percent drop). Qualcomm said the results were negatively impacted by its ongoing dispute with Apple.
The company also highlighted a previously disclosed dispute with another licensee, who underpaid royalties to Qualcomm due in the second quarter of fiscal 2017 and did not report or pay royalties due in the third and fourth quarter. Qualcomm said it expects the licensees will continue to take such actions in the future until the disputes are resolved.
Qualcomm Incorporated CEO, Steve Mollenfopf, remained positive, saying the results reflect “continued product leadership and profitability improvement in our semiconductor business, including strength in adjacent opportunities outside mobile.”
Mollenkopf said the company continues to see “strong growth trends for global 3G/4G device shipments and are focused on protecting the established value of our technologies and inventions. We are leading the industry to 5G and are well positioned with our product and technology leadership to continue our expansion into many exciting new product categories, such as automotive, mobile computing, networking and the Internet of Things.”
In addition to the Apple dispute, Qualcomm’s Q4 results were negatively affected by an $868 million fine imposed by the Korea Fair Trade Commission (KFTC) in the first quarter of 2017; as well as a $974 million reduction to revenues related to the BlackBerry arbitration decision in the second quarter; and a $778 million fine imposed by the Taiwan Fair Trade Commission (TFTC), which was accrued in the fourth quarter.
Also affecting Qualcomm’s results, during the fiscal year, the company deposited $2 billion to collateralize the letters of credit related to its proposed acquisition of NXP, which was recorded as other noncurrent assets at the end of the third and fourth quarters of fiscal 2017.
On October 27, 2016, Qualcomm announced a definitive agreement to acquire NXP Semiconductors N.V. for estimated total cash of $38 billion to be paid to shareholders. NXP is a leader in high-performance, mixed-signal semiconductor electronics in automotive, broad-based microcontrollers, secure identification, network processing and RF power products. The transaction is subject to receipt of regulatory approvals.
Emirates Integrated Telecommunications Company PJSC, the parent company of “du” and “Virgin Mobile UAE”, published its financial results for the quarter ended 30 September 2017, showing a 4 percent growth in net profit after royalty to AED 476 million.
Revenue was “stable” according to EITC chief executive officer, Osman Sultan, at AED 3.13 billion, compared to AED 3.14 billion in Q3 2016, as the company “invests in adjacent business areas to transition to its next phase of growth.”
“We continue to see pressure on mobile rates, with mobile revenue decreasing 3.3 percent to AED 2.30 billion,” said Mr. Sultan. “We remain on track with our strategy of attracting higher quality customers and are pleased to report that the post-paid segment increased 14 percent in Q3 2017 compared to the same period last year.”
Mr. Sultan added, “EBITDA was AED 1.33 billion in Q3 2017, compared to AED 1.38 billion for the same period last year, showing a decline year on year as the company invests in adjacent business areas to transition to its next phase of growth.”
Mr. Sultan highlighted the launch of Virgin Mobile UAE as an exciting milestone of Q3 for EITC. “Featuring an innovative, all-digital platform, Virgin Mobile is ushering a new era of connectivity and simplicity for our customers, while also reinventing the traditional telecom business to a more efficient and lower cost base operating model,” he said.
As the company looks towards a “smart future”, Mr. Sultan said EITC is investing in pushing forward its digital transformation agenda and driving the company to its next phase of growth as a fully integrated ICT player.
“Our increased reliance on the IoT has fundamentally changed the way people interact and we therefore must change the way we do business,” he said. “To this end, we announced a significant change in our organizational structure with the creation of three new business divisions to support EITC’s growth.”
Mr. Sultan added, “The newly formed ICT Solutions division will provide UAE government entities and enterprises with advanced end-to-end ICT infrastructure and services; the Digital Lifestyle and Innovation division will be focused on the development of innovative products and services for UAE consumers, including smart home services, and the Infrastructure division will consolidate all infrastructure, network and data center operations under the EITC umbrella.”
As part of the new organizational model, Mr. Sultan announced the nominations of Fahad Al Hassawi and Farid Faraidooni as Deputy CEOs, each with oversight and mandate on specific areas. “I have the upmost confidence that together we will successfully drive EITC’s transformation agenda and allow expansion into new areas of growth,” he said.
Alphabet Inc., the parent company of Google, announced its financial results for Q3 on Oct. 26, for the quarter ended Sept. 30. The company’s revenues were up 24 percent year-on-year, reflecting strength across Google and other bets. “Our momentum is a result of investments over many years in fantastic people, products and partnerships,” said Ruth Porat, FCO of Alphabet.
The company had a “terrific quarter” said Porat in a conference call with media. Revenues of $27.8 billion were up 24 percent year-on-year, and also up 24 percent in constant currency. Advertizing revenues benefited from strong performance in sites, which was powered by strong results in mobile search.
The company saw growth in network revenues which was led by its programmatic business. Alphabet also benefited from growth in revenues from cloud, play and hardware.
Alphabet’s performance was strong in all regions, Porat said. US revenues were $12.9 billion, up 21 percent year-on-year. Europe, Middle East and Africa revenues were $9.1 billion, up 23 percent year-on-year. Asia Pacific revenues were $4.2 billion, up 29 percent versus 2016. Other Americas revenues were $1.5 billion, up 33 percent year-on-year.
The company’s operating expenses were $8.8 billion, up 11 percent year-on-year, reflecting the change in the timing of its annual equity refresh cycle from the third quarter to the first quarter of each year. Operating income was $7.8 billion, up 35 percent versus 2016, and the operating margin was 28 percent. Other income and expense was $197 million.
Google contributed revenues of $27.5 billion, up 23 percent year-on-year. In terms of the revenue detail, Porat said, Google site revenues were $19.7 billion in Q3, up 23 percent year-on-year, led by mobile search, and complemented by desktop search and strong performance from YouTube.
Meanwhile, Alphabet’s Network revenues were $4.3 billion, up 16 percent year-on-year, reflecting the ongoing momentum of programmatic AdMob, a Google-owned advertizing company. Other revenues for Google were $3.4 billion, up 40 percent year-on-year, fueled by cloud, play and hardware.
Total traffic acquisitions were $5.5 billion or 23 percent of total advertizing revenues and up 32 percent year-on-year. Other Bets revenues – generated by Nest, Fiber and Verily – were $302 million. Operating loss including the impact of SBC was $812 million for Q3.
“Nest continues to drive ongoing product expansion with a number of notable launches including the Nest Thermostat E, which is offered at a lower price point than the Nest Learning Thermostat,” said Porat. “Nest also announced a home security solution that includes the Nest Secure alarm system, Nest Hello video doorbell, the Nest Cam IQ outdoor security camera and corresponding software and services.”
Porat added, “Waymo continues to expand its geographic presence and announced this morning that it will commence winter testing in Michigan to build on our progress to-date addressing the challenge of autonomous driving in cold weather, particularly with snow, sleet and ice. Michigan is the sixth state where Waymo is testing its self-driving vehicles. Over the last eight years, Waymo's cars have self-driven in more than 20 cities.”
Porat also mentioned Project Loon, a research and development project being developed by Alphabet subsidiary X with the mission of providing Internet access to rural and remote areas. Alphabet has been collaborating with companies such as SES and AT&T to deliver emergency Internet service to the hardest hit parts of Puerto Rico.
Google CEO Sundar Pichai said he has been “really proud of the progress this quarter, launching popular new products and continuing to grow our business in new areas. It's been particularly exciting to see our early bet on artificial intelligence pay off and go from a research project to something that can solve new problems for a billion people a day.”
Nokia released its Q3 financial results for 2017 showing net sales of €5.5 billion for the quarter compared to €6 billion for the same period last year. The company reported a 7 percent year-on-year sales decrease in Q3. Nokia CEO Rajeev Suri said the company’s patent licensing business was the “clear highlight” of the quarter.
“We reached a favorable arbitration outcome with LG and have since reached an agreement with them on a license for a longer term than what was set out in the arbitration,” Suri said. “With this fast and effective execution against our patent licensing strategy, we have approximately doubled our recurring licensing revenue from €578 million in 2014.”
Suri said he was pleased that in 2017, the growth in patent licensing helped to offset the sales decline on the Networks side. “We have excellent momentum and considerable opportunity to further develop the business in 2018 and beyond,” he said.
The company saw strength in parts of its Networks business in Q3. On the sales side, Nokia saw constant currency year-on-year growth in Global Services and IP Routing as well as in its Middle East and Africa, and Asia-Pacific regions. Orders were up in many areas, according to Suri, including Applications & Analytics, which logged its fifth consecutive quarter of order growth in Q3, showing the progress being made to build a strong, stand-alone software business.
On the profitability side, the overall Networks gross margin of 38.6 percent was up compared to one year ago, a “remarkable achievement” Suri said, in the “context of a market that remains challenging”. In addition, Global Services and IP Networks and Applications delivered improvements for Nokia in operating margin compared to Q3 2016, at 8.1 percent and 10.7 percent, respectively.
Suri said the company continued to build momentum in its strategy to expand customer base beyond communication service providers. Across the adjacent segments that Nokia’s targeting, year-to-date orders were up by double-digit percentages and sales were up by 8 percent, excluding the former Alcatel-Lucent third-party integration business that the company is currently winding down.
“We also added more than 60 new customers in these adjacent segments so far this year, including China Pacific Insurance Company, the first large enterprise win for our Nuage business in China,” Suri said. “With cable operators, we won the first customer - WOW! in the United States - for our new products coming from the acquisition of Gainspeed, which we are also trialing with almost a dozen customers, including some of the industry's largest players.”
These results, he said, “reflect the power of our disciplined operating model and the advantages of our end-to-end portfolio.” In a market where competition remains robust, operational discipline is a must, he added, and it is a “core strength of Nokia.”
Furthermore, as the market transitions to 5G, Suri said he believes that the benefits of Nokia’s portfolio will become even more apparent given that 5G is about much more than Radio. It requires Cloud core, IP routing, transport of many kinds, fixed wireless access, Software-Defined Networking and more - and Nokia is one of the few companies that are able to meet all those needs.
Nokia experienced some challenges in its Mobile Networks business and saw a continued decline in its primary addressable market in 2018. That decline, which the company estimates to be in the range of 2 percent to 5 percent, is the result of the multiple technology transitions underway; robust competition in China; and near-term headwinds from potential operator consolidation in a handful of countries.
“In terms of the issues we are facing in Mobile Networks, I have noted in previous quarters that the R&D team in this business group has faced an extraordinarily high workload,” Suri said. “Given this situation, we have seen some issues with the time taken to merge some products that have, unfortunately, impacted a small number of customers. As a result, Mobile Networks has experienced both revenue pressure and an increase in expected network equipment swap costs.”
He said the company is “committed to getting these things back on track and we are already seeing meaningful improvements”. Field deployments of Nokia’s new AirScale products were ramping up in all the company’s geographies, including with key North American customers. These products help improve operator competitiveness, Suri said, not just by addressing cost challenges, but also by setting a new standard for performance and flexibility.
Suri also noted that despite some additional investment required in Mobile Networks to maintain product leadership, Nokia is committed to its €1.2 billion cost savings plan in full-year 2018. These savings come at a slightly higher cost than previously expected, and Nokia will continue to assess opportunities to deliver further savings in the area of cost-of-goods sold.
“Regarding our cash position, I am not satisfied with our performance in the third quarter and we are redoubling our efforts in this area. Maintaining our strong balance sheet is a clear priority,” said Suri. “In short, Q3 was a period in which we faced some challenges, but delivered good performance in many areas as well as momentum in the execution of our strategy.”
Spanish telecoms giant Telefonica released its financial results for the January-September period, showing a profit of €2,439 million (+9.6 percent) and a free cash flow generation of €3,226 million (+ 39.2 percent). The company still faces heavy debt despite the sale of its infrastructure arm Telxius. Telefónica’s debt fell by €3.646 million to €45.947 million.
Telefónica confirmed in February it would sell up to 40 percent of its infrastructure unit Telxius to US investment fund KKR for 1.27 billion euros ($1.35 billion). The company, which has been burdened by heavy debt, failed last September to float the unit after not being able to attract enough demand for the share sale.
Telefónica said it would keep a majority stake and operational control of Telxius, which operates telecommunications towers and subsea fiber optic cables, and would continue to consolidate it into its accounts. The subsidiary manages 16,000 telecoms towers in five countries as well as 65,000 kilometers (40,000 miles) of submarine fiber optic cables.
Telefónica’s revenues decreased 2.5 percent year-on-year in Q3 2017 to €12,754 million (€38,846m in the first nine months; +1.4 percent). In organic terms, however, revenue growth accelerated to 4 percent (+2.9 percent in January-September), driven by improved contributions from Telefónica España, Telefónica Deutschland and Telefónica Hispanoamérica.
Handset sales had a year-on-year double digit growth in the quarter (+11.8 percent). Mobile data revenues increased by 16.3 percent year-on-year in organic terms in the quarter (+15.9 percent in January-September), representing 58 percent of the quarterly mobile service revenues.
Telefónica has continued to focus on expanding 4G and UBB networks, and the simplification and digitalization of processes and systems, also reflecting integration synergies and including €502 million in spectrum and licenses.
Telefónica maintained its focus on accelerating digital transformation to contribute to improving its efficiency and growth to the maximum. In order to increase the value of network and connectivity, UBB rollout continued at a strong pace, 42.8 million premises passed with FTTx and cable, 18 million in Brazil (FTTx and cable), 18.6 million in Spain (FTTH) and 6.2 million in Hispanoamérica (FTTx and cable). 4G coverage increased to 69 percent.
Swedish telecom equipment provider Ericsson published its Q3 financial results on October 20. The company reported a 6 percent year-on-year drop in third quarter revenue which accounted for SEK47.8 billion ($5.9 billion) while the loss was SEK4.8 billion ($590 million), worse than last year’s, reaching $24.5 million.
“We continue to execute on our focused business strategy,” said Ericsson President and CEO Borje Ekholm. “While more remains to be done, we are starting to see some encouraging improvements in our performance despite a continued challenging market.”
Networks showed a slight sales growth year over year. Networks adjusted operating margin was 11 percent. While losses continue in IT & Cloud, said Mr. Ekholm, the company sees increased stability in product roadmaps and projects.
“The general market conditions continue to be tough,” he said. “Sales adjusted for comparable units and currency declined by -3 percent year-on-year. Sales in North America, adjusted for comparable units, currency and the rescoped managed services contract were stable. We also saw growth returning in several countries as operators are increasing their investments in network capacity.”
Mainland China declined for Ericsson as the market is normalizing following a period of significant 4G deployments, representing more than 60 percent of global 4G volumes in the industry. The company managed to increase its LTE market shares in Mainland China to position Ericsson in 5G. However, this will have a dilutive effect on gross margin in Mainland China in Q4 2017, but the ambition is to continue to deliver double digit adjusted operating margin in Networks in Q4 2017.
Sales in Networks grew for Ericsson. Higher hardware capacity sales and a more competitive product portfolio resulted in an adjusted operating margin of 11 percent. The Ericsson Radio System portfolio, accounting for 55 percent of total radio volumes year to date, is proving competitive, Mr. Ekholm said, contributing both to improved earnings and a stronger market position.
In IT & Cloud, sales declined and losses increased in the quarter for Ericsson. The increase in quarter-on-quarter losses is largely due to higher amortization than capitalization of development expenses.
“Our turn-around plan builds on stability, profitability and growth in that order,” said Ekholm. “The initial focus has been on stabilizing both product roadmaps and challenging contracts. We have made good progress in the quarter. However, securing deliveries on large transformation projects puts pressure on gross margin in the near term.”
“The IT & Cloud business is of strategic importance as our customers are preparing for 5G and will digitalize their operations and invest in a future network architecture based on software-defined logic,” Mr. Ekholm added.
Ericsson will now expand its focus to improve profitability through increased efficiency in service delivery. In addition, the company will scale the software part of the business mix and increase the level of pre-integration services, which will lead to a higher gross margin but lower services sales. Positive effects on gross margin are expected in 2018.
“Despite continued decline in legacy product sales, there is good traction in our new media portfolio with several important wins in the quarter,” said Mr. Ekholm. “We have accelerated our efficiency measures and continue to pursue strategic opportunities for this business. Managing our cash is a top priority.”
Ekholm concluded, “We remain fully committed to our focused business strategy. We continue to invest to secure technology leadership and year to date we have recruited more than 1,000 R&D employees in Networks. Customers give positive feedback on both our long-term strategy and on our current 5G-ready portfolio.”
UAE telecom company Etisalat Group, which operates and owns subsidiaries in Middle East, Africa and Asia, released its consolidated financial statement on October 25 for the three months ending 30 September. Consolidated net profit after Federal Royalty amounted to AED 2.4 billion resulting in a net profit margin of 19 percent and increased year-on-year by 29 percent. The company’s consolidated revenues amounted to AED 12.9 billion.
Etisalat Group’s UAE branch saw a 3 percent revenue increase year-on-year amounting to AED 7.6 billion. The UAE branch’s net profit amounted to AED 2.0 billion representing 4 percent increase year-on-year. Etisalat’s UAE subscriber base grew 2 percent year-on-year to reach 12.5 million. The company’s aggregate subscriber base reached 140 million up slightly from 139 million in Q2.
“Etisalat continues to deliver solid performance in the third quarter, despite the prevailing global economic challenges and the vastly transforming industry,” said Etisalat Group CEO Saleh Al Abdooli. “We are on the verge of entering a new era, which transcends any technological disruption we ever witnessed, and will be altering and reshaping our society and industry on a large scale.”
In Q3 2017, Etisalat signed a strategic partnership as part of Dubai Future Accelerators program to bring future medical care solutions to UAE and the MENA region. The company successfully completed the fastest 5G live trial globally reaching 71Gbps, and launched 4G services in Egypt through its subsidiary Etisalat Misr. Etisalat also launched a new brand ‘Swyp’ targeting youth in UAE.
“Etisalat is confidently moving forward and progressing positively in enriching lives and enabling societies across its footprint,” said Mr. Al Abdooli. “As a group, we will always assure a vigorous portfolio that is generating synergy, focusing on customer experience, growing value, and operating as one family.”
Mr. Al Abdooli added, “As we look back at our achievements, we sense and honor the great support that was extended to us by the wise leadership of the UAE, who did not only enable the creation of a world class telecom sector, but are also leading the way and acting as role models in technology adoption. Appreciation is also extended to our shareholders and loyal customer, to whom we owe more success and greater achievements.”
Etihad Etisalat (Mobily) in Saudi Arabia reported a Q3 loss, blaming a requirement introduced last year that customers had to register their fingerprint with SIM cards. The company’s net losses increased by 5 percent to 174.5 million riyals ($46.53 million) it said in a statement to the Saudi bourse. Revenue also dropped 4.3 percent to 2.8 billion riyals.
Mobily said introducing the fingerprint registration rule led to an “erosion” of its customer base. The requirement was introduced last year by the Communications and Information Technology Commission, who instructed all SIM cards issued in Saudi Arabia to be linked to a fingerprint record held at the National Information Center.
Mobily competes with Saudi Telecom Company (STC) and Zain Saudi Arabia in the kingdom. In September, Mobily and Zain Saudi paid the first installments (30 percent of the total amount) for the acquisition of additional spectrum in the 1800MHz band. The new spectrum will be valid for fifteen years, after it goes into effect on January 1, 2018.
Mobily paid SAR126.9 (US$33 million) for its first payment installment and Zain KSA paid SAR 253.8 million (US$68 million), before the deadline of September 11. The fees must be paid in equal installments (7 percent of the total each) over ten years, with the first installment due in 2019.