Saudi Fransi Capital and Winton Group launch systematic trading program for Saudi equities

Updated 15 March 2018
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Saudi Fransi Capital and Winton Group launch systematic trading program for Saudi equities

Saudi Fransi Capital and Winton Group have announced their collaboration on the launch of the first systematic trading program for Saudi equities.
The initiative is the first of its kind in Saudi Arabia’s capital markets and the wider region, and brings to bear the multi-decade expertise of Winton Group in applying statistical methods to investing.
Walid Fatani, chief executive of Saudi Fransi Capital, said: “Saudi Fransi Capital is always seeking to introduce new ideas and best-of-breed investment products to the Saudi Arabian capital markets. Big data, scientific techniques, algorithmic trading and similar quantitative methods are now permanent features of investing and global capital markets, but have minimal representation in the region. Our collaboration with Winton Group aims to bring this next generation of investment methods to Saudi Arabia and I am excited to have partnered for such a venture with Winton, a world leading systematic investment firm.”
David Harding, founder and chief executive of Winton Group, said: “We are pleased to be working with Saudi Fransi Capital on this pioneering research collaboration. The growing diversity of the Saudi equity market makes it suitable for the systematic investment strategies upon which Winton’s business is built. As the dynamic and far-reaching Vision 2030 initiative progresses, we hope to make a valuable contribution to the future development of Saudi Arabia’s capital markets.”


Mobily quarterly loss down by 49%

Updated 26 April 2018
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Mobily quarterly loss down by 49%

Saudi telecom provider Mobily decreased its quarterly losses in Q1 2018 by 49 percent to SR93 million ($24.84 million) compared with SR182 million in Q4 2017. This was mainly due to a growth of revenues driven by a better mix of products mainly from data, the increase of efficiency in managing operational expenses, the impact of implementing IFRS 9 and 15, and the reversal of certain provisions that are no longer required, according to the company.

Revenues improved for the second consecutive quarter reaching SR2,833 million in Q1 2018 compared with SR2,827 million in Q4 2017, a slight increase of 0.2 percent, despite the following:

l The impact on sales at the beginning of the year due to the implementation of the value-added tax (VAT). 

l The reduction in interconnection rates by 45 percent.

l The seasonality of handset sales, and its increase in Q4 2017.

l The seasonal decrease related to the number of days in Q1. 

Without the decrease of the interconnection rates, revenues would have grown by 2 percent.

Mobily’s gross profit increased in Q1 2018 by 6.6 percent to SR1,663 million compared with SR1,560 million in Q4 2017. This increase is mainly due to the reduction in interconnection rates during Q1 2018 compared with those of Q4 2017 and the reduction in equipment costs in Q1 2018 compared with Q4 2017.

Mobily managed to grow its revenues for the second consecutive quarter. Q1 2018 revenues slightly decreased by one percent (SR33 million) to SR2,833 million compared with SR2,865 million in Q1 2017. Mobily achieved a stable level in revenues despite the general economic and regulatory changes, including the impact on sales in the beginning of the year due to the implementation of VAT, and the reduction in interconnection rates by 45 percent.

Without the decrease of the interconnection rates, the revenues would have grown by one percent year over year.

The gross profit stabilized at SR1,663 million in Q1 2018 compared to SR1,665 million in Q1 2017 with a slight decrease by 0.12 percent, despite the slight decrease in revenues.