Sunday, Aug 05, 2012
LONDON (Zawya Dow Jones)--Saudi Arabia's Etihad Etisalat Co. (7020.SA), better known as Mobily, has signed a contract with International Business Machines Corp. (IBM) valued at just more than one billion Saudi riyals, Mobily company said.
The contract is for outsourcing IT operations services. The total cost of the contract is 1.05 million riyals ($280 million) with a term of five years.
The contract will lead to technical advantages in product quality, the company said, adding that it will also contribute to ensuring business sustainability and "more flexibility in expansion, adaptability and risk management."
Mobily last month posted a 22% increase in second-quarter net profit to SAR1.42 billion, as higher revenue from data services helped the telecommunications company beat most analyst expectations.
The company, which is 27.5% owned by Emirates Telecommunications Corp. (ETISALAT.AD), approved a dividend distribution of SAR700 million for the second quarter.
Mobily shares closed 0.76% lower at SAR65.25 on Sunday.
Write to Iman Dawoud at iman.dawoud@dowjones.com;
Twitter: @ZDJnews
(END) Dow Jones Newswires
05-08-12 1441GMT
