Mobily share to face more bearishness after dismal earnings . . . . . . . . . . . . . . Saudi Arabia`s Mobily, also known as Etihad Etisalat, said on Monday its third-quarter profit dipped 71 percent, on the back of provisions for bad loans and impairments on its investment. Net profit in Saudi Arabia’s second biggest telecommunications operator reached 472 million riyals in the three months through September 30, compared with 1.63 billion in the same period a year earlier. The company said the drop in profit was driven by the rise in depreciation while sales, marketing and general expenses edged up from last year. Provisions for bad debts totaled 207 million riyals. Earnings during the third quarter of 2013 were buoyed by non-recurring wholesale revenue that was not repeated in the same period of 2014. Mobily decided last week to delay the announcement of its earnings while suspended trade in its stocks until reviewing some unclear items in its financial statements. First nine-month profit During the first nine months of this year, earnings dropped 41 percent from the same period a year ago as result of the cancellation of an agreement with Etihad Atheeb Telecom, which allows the right of using infrastructure, causing a loss of 338 million riyals. Net profit retreated to 2.49 billion in the above-mentioned nine-month period from 4.24 billion a year earlier. Accordingly, profit per share slipped to 3.24 riyals from 5.51 riyals. The return on equity shareholders reached 11 percent during the first nine months this year, compared to 14.2 percent a year ago. Technical analysis Mobily share is still suspended, but it is expected to be negatively affected by the downbeat earnings once it comes back to trade. undefined Before the suspension, the share saw a decline for three straight sessions, losing around 8 percent, to close at 79.95 last Wednesday below critical support at 82.0, which represents a 38.2 percent Fibonacci retracement level. The recent trading areas have been near 79.0, where more bearishness will probably push the price down further to hover between 77.0-71.0 levels #egyptyard
Posted on: Mon, 03 Nov 2014 17:39:44 +0000
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