Saudi mobile phone operator Etihad Etisalat (Mobily) posted a higher-than-expected rise in net profit on more post-paid voice and broadband customers, pushing its shares up by almost 6 percent. With voice services penetration well above 100 percent, the kingdom's second-biggest mobile firm will focus on selling more data services to both corporate customers and households to maintain high profit growth, a company executive told Reuters. Mobily made a record SR807 million ($215.2 million) in the three months to Sept. 30, against SR539 million a year earlier, beating the most optimistic forecasts by about 10 percent. “The increase in the net profit during the third quarter stemmed from the continued steady increase in the number of post-paid telephone lines,” Mobily said. The firm also expanded the coverage of the third-generation network to new cities which “helped greatly to add new broadband and data subscribers”. “We are seeing growth across all lines,” David Murphy, Mobily's chief marketing officer, told Reuters. Earnings per share stood at SR2.8 compared with SR2.63 a year earlier. Operating profit rose 32 percent to SR862 million in the three months ending September. Mobily's shares rose by up to 5.8 percent after the earnings announcement to add to some 31 percent it has gained so far this year. “Valuation remains reasonable, with the shares trading at 11.2 times and 9.9 times our 2009 and 2010 earnings estimate. We maintain our ‘buy' recommendation with a target price of SR49,” said Dubai-based Shuaa Capital. Murphy said the number of post-paid customers grew 40 percent in the year to end-September, driven by Raqi, or high
