Mobily achieves 17 Million net Profit for the First Quarter of 2016

Etihad Etisalat (Mobily ) has achieved a net profit amounted SAR 17 million for the first quarter of this year 2016 comparing to a loss of SAR 44 million for the same period last year, with a growth of 54% so that he company continues the rising trend of profitability which began with the fourth quarter of last year.

The improvement of the profitability is attributed to the improvement of  earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) which amounted for SAR 1.116 billion (representing 32% from revenues) compared to SAR 932 million for the same quarter of last year (representing 25% of revenues), which reflects the positive progress  of the company’s operational efficiency that managed to control the network operational costs and minimizing expenditures.

Mobily explained that gross profit for the first quarter of the current year amounted SAR 1.924 billion compared to SAR 1.918 billion for the same quarter of the last year, while revenues for the current quarter reached SAR 3.44 billion compared to SAR 3.65 billion for the same quarter of the last year. The company attributed that to the decline of devices sale and slow down sales affected by customers fingerprint validation and whole consequences of this decision was not fully calculated by the company.

The first quarter of 2016 comes within the implementation of Mobily’s plans and strategies that were carefully prepared by the Board of Directors and the company executive management despite the challenges witnessed by the telecom sector. Also, the first quarter witnessed reasonable improvement in many aspects particularly in EBITDA margin. Mobily has the fundamentals that enable it to continue the upward track, especially the company has a qualified human resources, outstanding brand name, and a solid infrastructure.