Mobily announces 11% rise in profit for FY2013; conducts 1Tbps transmission trial with Ciena

15 Jan 2014

Etihad Etisalat (Mobily), Saudi Arabia’s second largest telecoms operator by subscribers, has announced its financial results for the twelve months ended 31 December 2013, reporting 6.8% growth in revenues to SAR25.191 billion (USD6.72 billion) from SAR23.585 billion reported in the previous year. According to a press release on the Saudi Stock Exchange’s (Tadawul’s) website, the growth was attributed to an increase in revenues generated by the company’s business and data sectors. In the period under review, revenues from the data sector amounted to 28.0% of the company’s total revenues, driven by Mobily’s fibre-optic and mobile broadband operations; Mobily expects data-related activities to account for 32.0% of its total revenues in 2014. Meanwhile, revenues from the business sector increased by 23.0% when compared to FY2012, primarily thanks to hosting and managed services, as well as transmission and interconnection sales. The net profit for the period under review amounted to SAR6.677 billion, a 10.95% improvement on the SAR6.018 billion reported in FY2012. EBITDA increased by 7.60% to SAR9.190 billion over the twelve month period. Further, Mobily also saw an improvement in its gross profit margin, to 51% in FY2013, with the growth mainly attributed to ‘improved quality and mix of revenues.’

Meanwhile, Mobily has conducted a live field trial of a 1Tbps optical transmission across metro sites in Saudi Arabia’s capital of Riyadh, in partnership with equipment vendor Ciena. According to a joint press release, the trial took place in December 2013 across Mobily’s existing metro fibre infrastructure in Riyadh and carried its public sector and enterprise customers’ traffic over 40G and 100G wavelengths. The trial, which used Ciena’s 6500 Packet-Optical Platform powered by WaveLogic 3 coherent optical processors, indicated that Mobily will be able to upgrade its existing metro network to support 400Gbps and 1Tbps channels without modifications. Mobily’s COO Nasser Al Nasser said: ‘The successful 1Tbps trial, the first of its kind in the Middle East, is the next step in our network evolution. Ciena’s high-capacity Terabit optical technology will give us the flexibility and scalability to make 1Tbps a reality and deliver next-generation products and services to our customers.’

Saudi Arabia, Ciena Corporation, Mobily (Etihad Etisalat)