Two of GCC’s largest telecommunications companies released their third-quarter numbers this week, and they couldn’t be more different from one another. Saudi Arabia’s Mobily reported a 26% increase in net profit compared to the same period last year. Mobily’s total net profit went from $59m in Q3 of 2020 to $75m in Q3 of 2021. Mobily gives credit to a higher subscriber base and a significant jump in the sale of fiber to home connections.
On the other end of the spectrum, we have Emirates Integrated Telecommunications Co (aka Du). The UAE-based telecom company saw its Q3 net profits decline 66% to $77m. Despite revenue rising by nearly 10% to $781m, the company’s operating expenses ended up hurting Du’s growth. In Q3, operating costs rose a stunning 14% from $536m in 2020 to $615m in 2021. However, Du can comfort itself thanks to higher sales of handsets and postpaid mobile subscriptions.
why it matters
Both GCC telecom providers are in a joint quest to create new value in the sector by accelerating digitalization across the region. Future financial statements of both companies will be strongly associated with how well they will meet customer expectations in a highly digital world (watch out for 5G adoption).