قصة عذيب للاتصالات.. من الإفلاس مرتين إلى المليارات! | بودكاست الغرفة

High-level summary

Business, strategy and operations review of Go / Atheeb Telecommunications. Guest: Professor Yahya bin Saleh Al‑Mansour (CEO). Host: Mohammed Al‑Wahibi. INSEAD later studied the turnaround as a business case.

Company context and outcome (key facts)

• Founded: 2007; commercial launch ~2009 as a fixed‑line / fixed‑internet operator (earlier tech: WiMAX).
• Crisis history: multiple capital raises and recapitalizations; heavy legacy investment in obsolete technology; repeated operating losses; stock suspended for ~2+ years. Major distress when Yahya joined in October 2020.
• Turnaround result (summary):
  • Returned to profitability in 2022.
  • Strong revenue growth 2021–2023 and a profit jump by 2023.
  • Market value climbed back into the billions SAR; stock resumed trading and rallied strongly.
  • INSEAD documented the turnaround as a teaching case.

Frameworks, playbooks and governance used

• 100‑day transformation playbook:
  • Rapid diagnostic → priority list → immediate actions (team, governance, supplier outreach, cash moves).
• Executive team rebuild and empowerment:
  • Recruit experienced leaders; blend retained incumbents with new hires.
  • Create shared‑services and clear functional accountability.
• Transformation governance:
  • Weekly executive management committee (ExCo/AMC) to review projects, performance and make in‑meeting decisions.
  • Formal Procurement Committee chaired by the CEO.
  • Cost Optimization / Rationalization Committee.
• Supplier recovery playbook:
  • Triage suppliers by priority.
  • Immediate partial cash to restore operations + negotiated installment plans for outstanding balances.
  • Rebuild credibility by consistent payments.
• Asset rationalization playbook:
  • Identify non‑performing assets and either monetize, write‑down or remove (towers, unused frequencies, buildings).
• Vendor selection for large systems:
  • Pragmatic vendor choice (including lower‑cost or nontraditional suppliers) with milestone‑linked payments, staged deliveries, and creative shipping/payment terms.
• M&A / capability acquisition playbook:
  • Acquire or take majority stakes in specialized digital/cyber firms rather than build everything internally.
• Confidentiality & information control:
  • Strict need‑to‑know for sensitive financials during turnaround.

KPIs, metrics and material numbers (approximations)

• Shareholder base: ~25,000 retail shareholders affected during the suspension.
• Legacy financial distress:
  • Cumulative capital burned in prior cycles: referenced > SAR 2 billion.
  • Receivables & blocked amounts: examples cited around SAR ~200M.
• STC (major creditor/counterparty) negotiation:
  • Headline item ~SAR 800M central to reopening the stock.
  • Management paid an upfront ~SAR 125M cash to restore credibility and negotiated longer terms for the remainder (partial cash + installment plan).
• Frequency assets:
  • Book value fell from ~SAR 500M to ~SAR 320M (impairment risk; regulator withdrawal could trigger bankruptcy risk).
• Capital restructuring:
  • Reduced capital from SAR ~228M to SAR ~90M to clean the balance sheet and write down non‑performing assets.
• Revenue / profit trajectory (approx.):
  • 2020 (when Yahya joined): quarterly losses around SAR 37–38M.
  • 2021: similar negative quarters.
  • 2022: returned to profit (management cites ~SAR 40M profit for 2022).
  • 2023: profit jump to ~SAR 195M; profit margin reported in the mid‑teens (approx. 16–20%).
  • Revenue path cited: ~SAR 282M → ~SAR 370M → ~SAR 630M → then exceeding SAR 1,000M (crossed the billion‑SAR revenue threshold).
• Market cap / share price movement:
  • After recovery market cap reached multiple billions SAR (values referenced around SAR 1.9B earlier, later ~SAR 3.9–4.0B depending on price).
  • Stock rallied strongly; one quarter was noted as the fastest growth / top performer in Tadawul during the comeback.

Concrete examples & executional case studies

• Supplier negotiation:
  • Offered suppliers partial immediate cash (e.g., 50%) and staggered remaining payments over years; restored services and supplier relationships.
  • Applied across tower owners, equipment vendors and service providers.
• Tower rationalization:
  • Identified ~500 low‑value towers; negotiated removal/paydown to reduce ongoing rental expense and deliver multi‑year OPEX savings.
• Systems replacement (billing/OSS/BSS):
  • Avoided an expensive top‑tier replacement by selecting lower‑cost vendor partners (including a Jordanian vendor and FiberHome) with staged payments—saved tens of millions while meeting regulatory deadlines.
  • Insisted on fast delivery (air shipping when necessary) and performance milestones.
• Data center relocation under live traffic:
  • Executed overnight moves (logistics, cranes, even breaking a window) to avoid service disruption—illustrates a “do whatever it takes” mentality with risk management.
• STC debt settlement:
  • Paid an upfront cash tranche to prove seriousness and negotiated longer repayment schedules; this restored trading eligibility and market trust.
• Talent retention approach:
  • During losses, granted targeted executive bonuses and salary upgrades (functional reclassification and ~40–50% raises for some roles) plus one‑time cash incentives to retain critical leaders.

Strategic choices & go‑to‑market moves

• B2B emphasis:
  • Created a dedicated Business Sector separate from consumer, staffed with specialists in finance, government and enterprise.
  • GTM focused on verticalized solutions for finance, government, health, education, airlines, stadiums, etc.
• Product diversification:
  • Expanded beyond fixed internet into cloud computing, IoT, cybersecurity, digital transformation services and managed services—positioning as digital solutions rather than pure connectivity.
• Digital / M&A strategy:
  • Built a group/holding with targeted acquisitions in digital, cybersecurity and AI instead of building all capabilities internally.
• Regulator & stakeholder alignment:
  • Proactive dialogue with the Communications Authority, the Ministry and market regulators to avoid frequency withdrawal and obtain timebound relief/assistance where national interest and stability were relevant.

Operational playbook & cultural moves

• Rapid structure build:
  • Within weeks set up shared services, business sector leadership, procurement and IT leadership.
• Cost‑conscious culture:
  • Introduced pre‑approval and business case discipline for spending; managers required to justify costs and show ROI before approvals.
• Employee‑first policy:
  • Prioritized employees to drive customer experience: transparent career paths, training targets tied to managerial KPIs, annual raises reinstated, and targeted rewards to retain staff.
• Strict information governance:
  • Limited leak risk by tightly controlling access to financial information until public disclosure.

Actionable recommendations (distilled)

1. Launch a 100‑day triage plan on day one: diagnose cash drains, biggest creditor/asset risks, supplier triage, critical systems at risk.
2. Rebuild governance fast: weekly ExCo that can approve actions and procurement; create a dedicated procurement committee.
3. Prioritize suppliers who enable operations — restore credibility with partial immediate payments and structured repayment terms.
4. Rationalize assets (remove/cash‑out/write‑down) but avoid moves that harm customer experience; separate “cost saves” from “revenue kills.”
5. Recruit/retain a small number of senior domain experts (especially B2B and network/IT leaders) and protect them with short‑term incentives.
6. Negotiate creative vendor terms (deferred payments, milestone payments, staged deliverables) when cash is constrained.
7. Use M&A to buy missing digital capabilities quickly rather than building everything in‑house.
8. Keep regulators and large counterparties closely engaged — present credible remediation plans early.
9. Communicate transparently to shareholders and the market once actions are credible; regaining trust requires both payments and consistent follow‑through.

Risks and “must‑watch” items

• Spectrum/frequency risk: regulator withdrawal of spectrum is a major bankruptcy trigger and must be prioritized in cash and capex planning.
• Large creditor relationships: major telco counterparties can block operations if not credibly addressed.
• Legacy technology investments: WiMAX and other underutilized assets may require rapid write‑downs or repurposing.
• Talent burnout and leader health: turnaround leaders are at risk—build resiliency and delegation plans.

Case study and teaching value

• INSEAD produced a case based on this turnaround. Key teaching themes:
  • Aggressive triage and rapid decision‑making.
  • Pragmatic procurement and vendor sourcing.
  • Supplier trust rebuilding through credible payments.
  • Governance and structure rebuild.
  • Focused product and digital pivot.

Presenters and primary sources

• Host: Mohammed Al‑Wahibi (Room / “بودكاست الغرفة”)
• Guest / primary source: Professor Yahya bin Saleh Al‑Mansour (President & CEO, Go / Atheeb Telecommunications)
• Additional referenced contributors: Dr. Abdullah Al‑Mousa, Peter Key, Nasser (board/executive figures), Prince Abdul Aziz bin Fahd (anecdotal), INSEAD (case study).