Etihad Etisalat (Mobily), Saudi Arabia’s second largest mobile operator by subscribers, has announced its financial results for the twelve months ended 31 December 2014, reporting a 96.3% slump in net profit to SAR220 million (USD58.6 million), down from SAR5.937 billion in 2013. According to a press release on the Saudi Stock Exchange’s (Tadawul’s) website, the negative development was mainly attributed to a decrease in revenues, in addition to ‘an increase in operating expenses, higher depreciation and finance expenses and exceptional (one-off) items’. Further, the operator has highlighted that following a change in the timing of revenue recognition in respect to a promotional programme, net income for previous quarters has had to be restated. In the twelve months to end-December 2014 revenues decreased to SAR15.824billion, down by 17.5% year-on-year, while gross profit was down by 27.0% to SAR8.903 billion from SAR12.193 billion in 2013. Earnings before interest, tax, depreciation and amortisation (EBITDA) for 2014 amounted to SAR3.915 billion, a 53.7% slump on an annualised basis, when compared to the SAR8.450 billion reported in December 2013.
CEO Serkan Okandan commented: ‘During the fourth quarter of 2014, Mobily continued to be very active in consumer and business segments through the launch of various new products, services and tariffs enhancing customer experience. In 2015, and in line with our long term growth strategy, we will continue to invest in our mobile and fiber infrastructure, and focus on consumer and business segments.’