Saudi Arabia’s mobile operator Etihad Etisalat (Mobily) has published its financial results for the three months ended 31 March 2016, reporting a 6% decrease in revenues year-on-year to SAR3.440 billion (USD975 million), down from SAR3.658 billion in Q1 2015. The drop was mainly due to decreases in interconnection revenues and handsets sales, the company said. Further, a SAR184 million increase in EBITDA to SAR1.116 billion in 1Q16 was attributed to ’the containment of the increase of network costs, better management of the general and administrative expenses and normalisation of certain cost items’, with EBITDA margin improving to 32.4% (25.3% in 1Q15). Net income also grew, with the operator reporting profit of SAR17 million, up from net loss of SAR45 million in the corresponding period of 2015.
In related news, Saudi Telecom Company (STC) reported a 5.2% decrease in net profit to SAR2.375 billion from SAR2.504 billion reported in Q1 2015, attributing the negative result mainly to a 12.3% y-o-y increase in cost of services. In the period under review, STC reported revenues of SAR12.759 million, a 2.3% increase y-o-y on the SAR12.473 billion booked in 1Q15. EBITDA for the three months to end-March 2016, however, decreased by 3.8% from SAR5.160 billion to SAR4.962 billion.