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Data, Premium Postpaid Segment Grows Mobily Net Income 44%
Published Jan 19, 2010
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Mobily issued a statement Monday announcing gross revenues of SAR 13,058 million (US$ 3,482 million), 21% up on the previous year’s SAR 10,794 million (US$ 2,878 million) and a net profit of SAR 3,014 million (US$ 804 million) compared to SAR 2,092 million (US$ 558 million) during 2008 — up 44%.
The EBITDA margin of 37.04% was a direct result of a growing contribution from higher margin data revenue, Mobily’s services attracting higher spending postpaid subscribers and improved efficiencies, the company said in the statement.
Net profit for the fourth quarter was SAR 1,052 million (US$ 281 million) compared to SAR 778 million (US$ 207 million) for the same quarter of the previous year, up by 35%, and compared to SAR 807 million (US$ 215 million) for the third quarter of 2009.
For the year 2009, the Company’s Board of Directors has recommended a dividend of SAR 875 million (SAR 1.25 per share) compared to SAR 525 million (SAR 0.75 per share) for the previous year — an increase of 66.66%.
Payment will be made to shareholders registered at the close of the day of the annual general meeting, the date of which will be announced in the near future.
The Company’s shares performed particularly well during the year outstripping both the All Share Index and the Telecom Index on the Tadawul — 40% versus 27% and 9% respectively.
Major accomplishments during the year included the refinancing of a SAR 1.5 billion (US$ 400 million) loan and raising a SAR 900 million (US$ 240 million) loan to extend the company’s infrastructure.
Both of these financing packages were achieved in the face of constrained liquidity and financial institutions being risk-adverse, yet the Mobily was able to negotiate the facilities on favorable terms, added the statement.
Mobily’s chairman, Abdulaziz Al Sughayer, said: “The Hajj season was better than expected with Mobily capturing 52% of pilgrims (1.3 million of the 2.5 million pilgrims) who visited the Holy sites.
The 3.5G network in and around Makkah saw a 73% increase in traffic compared to the previous year.
The increase in traffic was achieved in the face of a decline in the number of pilgrims, the threat of swine flu, the sudden and overwhelming weather conditions and competition by the third operator.”
Etihad Etisalat closed the year with an overall subscriber base of 18.2 million, among them more than 1 million mobile broadband customers subscribed to high-usage date bundles (unlimited, 5 gigabytes, 1 gigabytes) and connected to the Internet using Mobily’s HSPA network — uptake figures far outstripping the competition.
Daily data traffic, uploaded and downloaded by customers, has grown to exceed 50 terabyte (TB) compared to 19 TB in 2008.
Data contribution for 2009 to revenue was 14% compared to 9% in the previous year.
“This contribution remains below the average for North American and Western European operators and indicates the growth potential for Mobily in the Kingdom,” the chairman noted.
Mobile broadband revenue based on HSPA technology increased by 159% compared to the previous year.
It is expected that Mobily will maintain its leading position in the mobile broadband segment in the Kingdom.
Wholesale revenue represented by sales to third parties increased by 470% compared to 2008.
“The Company will continue to invest in infrastructure, its strong brand appeal and network distribution capabilities across the Kingdom,” Al Sughayer added
Voice and value added data services offered by Mobily, particularly for local and global enterprise customers, will be enhanced by its participation in the Tata Global Network (TGN) Gulf Cable System which will connect the region to the world’s major hubs and city centers.
The system will provide new dimensions and resilience for Mobily’s infrastructure and service capabilities and will give its users access to new high-speed routes to the world.
The chairman closed his statement saying: “Mobily is a results oriented company with a proven track record that has successfully met the challenges of the past and has a clear vision of the future.”
Posted by
VMD - [Virtual Marketing Department]
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