Mobily announces 33% income increase in 2Q10

14 Jul 2010

Saudi Arabia’s second largest mobile operator by subscribers Mobily has announced net profits for the three months ended 30 June 2010 of SAR901 million (USD240.3 million), up by 33% year-on-year, helped by new customers and a rise in data revenue. It is Mobily’s highest quarterly net profit since it started operations in May 2005. Q2 2009 saw Mobily book SAR675 million in net income, and the new second-quarter results are well above analyst forecasts. Although operating costs crept up 0.3% year-on-year to SAR1.17 billion, second quarter operating profit rose 29% to SAR940 million. Mobily reported second-quarter revenues of SAR2.1 billion, compared with SAR1.8 billion in the year-earlier period.

Mobily has attributed the rise in profit to an increase in the number of subscribers, including post-paid and HSPA users, as well an increase in international call profit margins. The cellco, which currently covers 414 locations in Saudi Arabia, recently completed trials for the imminent upgrade of its HSPA+ network, testing speeds of 42Mbps. Earlier this year, Mobily’s chief executive Khalid al-Kaf announced that the firm expects to spend SAR2.5 billion in 2010 on improving its network and boosting its market share.

Saudi Arabia, Mobily (Etihad Etisalat)