Mobily Q1 revenues rise 12% to SR6.24bn

22/04/2014 07:45 AST

Mobily (Etihad Etisalat) said its revenues of first quarter of 2014 rose 12 percent to SR6.237 billion, from SR5.593 billion for the same period of last year.

Mobily said that the revenue increase of SR7.204 billion is a decrease of compared to the previous quarter.

The gross profit margin has increased to 50 percent compared to 48 percent for the same period of last year.

This increase comes as a result of the improved operational efficiency of the company as well as the improvement of revenue structure.

EBITDA registered 36 percent compared to 35 percent for the same period of last year, and 35 percent compared to the previous quarter.

The net profit for the first quarter is SR1.400 billion, compared to SR1.340 billion for the same period of last year, with an increase of 4 percent, compared to SR2,039 billion for the previous quarter with a decrease of 31 percent.

Mobily said the results of the last quarter of the year are usually better than the following first quarter as it coincides with Haj season and end-of-year occasions.

Earnings per share from the first quarter reached SR1.82 in comparison to SR1.74 for the same quarter of last year with an increase of 4 percent.

The increase of the first quarter revenues in comparison to the same quarter of last year came as a result of the business sector revenues increase that includes hosting and managed services, and the increase in data revenues, and the increase in postpaid revenues with the increase in the number of postpaid subscribers, as well as the increase in equipment revenues.

The increase in the net profit for the first quarter compared to the same period of last year has been impacted by the increase in depreciation expenses due to the expansion of the company’s capex.

Abdulaziz Al-Saghyir, chairman of Mobily’s board, the company has already succeeded in connecting 700,000 residential units with the latest high speed communications technology, with the aim of enhancing its leadership in offering the fixed broadband services through the fiber-optic network (FTTH) which provides high Internet speed reaching 200 Mbps.

Al-Saghyir said that, in order to cope with the current developments in both options and technologies that are witnessed by the telecom market in the Kingdom, and in line with implementing the company’s ambition to become a major player in the field of Information and Communications Technology (ICT), a new operational model was designed to serve the business sector unit including other departments amongst them is Mega projects unit. This new unit will be responsible for accomplishing and following up long term mega deals, and to target governmental, private and real-estate sectors.

The company is working currently to complete the new operational model for the consumer unit by mid of 2014.

ArabNews