Mobily’s revenues, EBITDA decrease in 1Q17

25 Apr 2017

Saudi Arabia’s mobile operator Etihad Etisalat (Mobily) has published its financial results for the three months ended 31 March 2017, reporting a 16.7% decrease in revenues year-on-year to SAR2.865 billion (USD763.6 million), down from SAR3.440 billion in Q1 2016. The drop was mainly due to decreases in interconnection revenues, as a direct result of the new mobile termination rates (MTRs) introduced in April 2016, coupled with a drop in handset sales and disconnection of unregistered customers due to the country’s fingerprint registration process. Further, a SAR198 million decrease in EBITDA to SAR932 million in 1Q17 was attributed to a 14% annual decline in gross profit to SAR1.665 billion, which was partly offset by several cost reduction schemes introduced in 2016, with EBITDA margin decreasing to 32.5% (32.8% in 1Q16). Net income also declined, with the operator reporting a loss of SAR163 million for 1Q17, compared to a profit of SAR20 million booked in the corresponding period of 2016.

Saudi Arabia, Mobily (Etihad Etisalat)