Mobily and Zain announce improved 4Q10 results

19 Jan 2011

Saudi Arabia’s second and third largest mobile phone operators, Mobily and Zain Saudi Arabia, have both released preliminary results statements for 4Q10, with each company demonstrating improved revenues and profit for the quarter. Mobily, the country’s second largest cellco by subscribers, reported a 39% increase in net income, which climbed to SAR1.4 billion (USD426.6 million) in Q4 2010, up from SAR1 billion during the same period twelve months earlier. Gross profit for the quarter reached SAR2.5 billion, representing a 22% increase compared to the figure of SAR2.1 billion recorded in 4Q09. Total revenue for 2010 reached SAR16 billion, up 23.1% from the SAR13 billion reported one year earlier. Abdulaziz Al Saghyir, chairman of Mobily, has attributed the revenue growth to higher usage rates, with data revenues now representing 18% of the company’s total revenues.

Elsewhere, Zain Saudi Arabia, which launched its cellular network in August 2008, has reported that its revenues for 4Q10 increased 93% year-on-year, reaching SAR1.7 billion, compared to SAR895 million twelve months earlier. Gross profit increased by 132% to SAR826 million, up from SAR356 million in the fourth quarter of 2009. Operating losses for the quarter decreased significantly, dropping 58% to SAR179 million. Net loss for the period also saw an improvement, falling 21% year-on-year to SAR521 million. Although official subscriber figures have yet to be released, Zain noted that its subscriber base exceeded eight million by the end of 2010, up from 7.3 million quarter on quarter, and 4.4 million year-on-year. Dr. Saad Al Barrak, CEO and managing director of Zain Saudi Arabia commented: ‘Our financial results for the fourth quarter is another achievement for Zain Saudi Arabia, and it proves Zain’s ability to meet its objectives in a timely manner. The continuous improvement of the revenues during the fourth quarter and the continuous decrease of the operational losses demonstrate Zain’s ability and its position in the market’.

Saudi Arabia, Mobily (Etihad Etisalat), Zain Saudi Arabia