Etihad Etisalat (Mobily), Saudi Arabia’s second largest mobile operator by subscribers, has announced its financial results for the three months ended 30 September 2015, reporting a net loss of SAR158 million (USD42.13 million), down from a net profit of SAR129 million in Q3 2014. According to a press release on the Saudi Stock Exchange’s (Tadawul’s) website, the negative development was mainly attributed to an increase in general and administrative expenses by SAR235 million. In the three months to end-September 2015 revenues decreased to SAR3.685 billion, down by 4.5% year-on-year, while gross profit was down by 1.3% to SAR2.157 billion from SAR2.186 billion in 3Q14. CAPEX dropped to SAR789 million (from SAR1.854 billion) in the three months under review, with the company highlighting that the development reflected a ‘continuous rationalisation of spending’. EBITDA for Q3 2015 amounted to SAR821 million, an 18.6% slump on an annualised basis, when compared to the SAR1.008 billion reported in September 2014.
Meanwhile, Mobily is said to be close to reaching an agreement with lenders to set new covenants for some of its outstanding loans by the end of 2015, according to the company’s chief executive officer Ahmad Farroukh, Arabian Business writes. A total of SAR2.4 billion of Mobily’s financing facilities are said to be due for repayment in 2015.