Etihad Etisalat Co announces the interim financial results for the period ending on 31-03-2014 (three months)
The revenues of the 1st Quarter totaled 6,237 million Riyals, compared to 5,593 million Riyals for the same period of last year, with an increase of 12% and compared to the previous quarter revenue increase totaled 7,204 million Riyals, with a decrease of 13% .The gross profit margin has increased to 50% compared to 48% for the same period of last year. This increase comes as a result of the improved operational efficiency of the company as well as the improvement of revenue structure. EBITDA registered 36% compared to 35% for the same period of last year, and 35% compared to the previous quarter.
The net profit for the 1st quarter is 1,400 million Riyals, compared to 1,340 million Riyals for the same period of last year, with an increase of 4% , compared to 2,039 million Riyals for the previous quarter with a decrease of 31%.
It is worth mentioning that the results of the last quarter of the year are usually better than the following 1st quarter as it coincides with Haj season and end-of-year occasions. Earnings per share from 1st quarter reached 1.82 Riyals in comparison to 1.74 Riyals for the same quarter of last year with an increase of 4%.
The increase of the 1st quarter revenues in comparison to the same quarter of last year came as a result of the business sector revenues increase that includes hosting and managed services, and the increase in data revenues, and the increase in postpaid revenues with the increase in the number of postpaid subscribers, as well as the increase in equipment revenues. It is worth noting that the increase in the net profit for the 1st quarter compared to the same period of last year has been impacted by the increase in depreciation expenses due to the expansion of the company’s Capex.
Engineer Abdulaziz Al Saghyir, Chairman of Mobily’s Board, stated that the company has already succeeded in connecting 700 thousand residential units with the latest high speed communications technology, with the aim of enhancing its leadership in offering the fixed broadband services through the fiber-optic network (FTTH) which provides high internet speed reaching 200 Mbps. Engineer Al Saghyir added that, in order to cope with the current developments in both options and technologies that are witnessed by the telecom market in the Kingdom, and in line with implementing the company’s ambition to become a major player in the field of Information and Communications Technology (ICT), a new operational model was designed to serve the business sector unit including other departments amongst them is Mega projects unit. This new unit will be responsible for accomplishing and following up long term mega deals, and to target governmental, private and real-estate sectors. The company is working currently to complete the new operational model for the consumer unit by mid of 2014. This unit depends upon the optimum use of huge data base (big data), and offering a special innovative customers experience.
In this context, the company already signed an agreement with ‘Accenture’, the world’s leading information technology, to allow a unique experience in providing information technology services in all different projects in the field of (ICT).The company has set a plan in collaboration with ‘Cisco’ to invest and develop a new technical solutions focusing on managed and cloud computing services for the business sector, small businesses and educational sector.
Engineer Al Saghyir mentioned that Mobily has signed an agreement with ‘Bharti Airtel’, a leading global telecommunications company, to interconnect each other’s MPLS, IPLC and IP Transit services. This enables the company to provide services for several sectors such as governmental, banking, retail, small and medium businesses in 20 countries across Asia and Africa. Mobily also signed an agreement which includes seventeen global operators in Europe, Asia and the Middle East to build and maintain a new submarine cable of high transfer capacities ranging up to more than 40 terabits, linking the Far East with Europe passing through the Middle East and Africa. This will contribute significantly to the growth of the business volume in the countries passing through. The submarine cable is expected to be completed in 2016.
On non-traditional front, the company has started to work on several long term initiatives such as Consumer ICT, and Consumer Adjacent services. The company shall focus on fields like digital advertisement, mobile health and electronic education.
Engineer Al Saghyir concluded that maximizing the shareholder value is one of Mobily’s priorities. Accordingly the Board of Directors will convene on Wednesday dated 30/04/2014 to determine the interim dividends to be distributed for the 1st quarter of the fiscal year 2014, and to set the entitlement and payment dates for the shareholders.