Mobily net income tumbles in 3Q16 as revenues decline

20 Oct 2016

Etihad Etisalat (Mobily), Saudi Arabia’s second largest mobile operator by subscribers, has announced its financial results for the three months ended 30 September 2016, reporting a net loss of SAR167.7 million (USD42.13 million), marginally up from a net loss of SAR158.3 million in Q3 2015. According to a press release on the Saudi Stock Exchange’s (Tadawul’s) website, the negative development was mainly attributed to a decrease in gross profit by SAR284 million, which was partly offset by a decrease in operating expenses reflecting cost optimisation efforts and a decrease in Zakat provisions resulting from a non-recurring transaction.

In the three months to 30 September 2016 revenues decreased to SAR2.932 billion, down by 20.8% year-on-year, due to a lower subscriber base as a result of the government’s biometric registration process and a reduction in interconnection rates. CAPEX dropped to SAR344 million (from SAR685 million) in the twelve months under review, with the company highlighting that the development reflected a ‘continuous rationalisation of spending’. EBITDA for Q3 2016 amounted to SAR809.9 million, a 1.3% slump on an annualised basis, when compared to the SAR820.8 million reported in September 2015.

Saudi Arabia, Mobily (Etihad Etisalat)