RIYADH Aug 5 Saudi telco Etihad Etisalat
(Mobily) has awarded IBM a five-year contract
worth 1.05 billion riyals ($280 million) to outsource its
information technology operations, it said in a bourse statement
The contract will be self-financed and will lead to
improvements in Mobily's products as well as making the company
more flexible, it said without further elaboration.
Mobily, which has a market value of $12.3 billion and is the
No. 2 operator in Saudi Arabia, reported a 22-percent rise in
second-quarter profit to 1.42 billion riyals last month, while
its 2011 annual profit was 5.08 billion riyals.
Parent firm Etisalat could increase its 28 percent
stake in the telco, its chief executive told Reuters in July, as
the United Arab Emirates' firm focuses its attention on high
growth, high population countries like Saudi.
Shares in Mobily dipped 0.8 percent on Sunday, trimming
year-to-date gains to 24.3 percent.