Mobily earns SR472m Q3 net profit; revenues exceed SR4 billion

Mobily has announced it revenues of the last nine months amounted to SR13,032 million in comparison to SR14,016 million for the same period of the previous year ( restated), with a decrease of 7 percent.

The gross profit for the last nine months amounted to SR7,998 million in comparison to SR8,617 million for the same period of the previous year ( restated), with a decrease of 7 percent, according to a company news release received here.

EBITDA for the nine months registered SR4,953 million in comparison to SR6,261 million for the same period of the previous year (restated), with a decrease of 21 percent.

The net income for the last nine months amounted to SR2,496 million in comparison to SR4,244 million for the same period of the previous year (restated) with a decrease of 41 percent.

Earnings per share for the first nine months reached SR3.24 in comparison to SR5.51 for the same period of last year ( restated).

According to Mobily, the decrease in the net income for the last nine months in comparison to the same period last year (restated) is attributed to several factors, one of these important factors is the presence of non- recurring revenues for the wholesale and carrier services during the same period of last year, in addition to the increase of selling and marketing expenses, depreciation expenses and increase of general and administrative expenses due to provisions increase amounting to SR471 million, for bad debts, slow moving inventory and impairment of goodwill resulted from the company investments.

The third-quarter revenues amounted to SR4,159 million, compared to SR4,883 million for the same period of last year (restated), with a decrease of 15 percent, added the press release.

Gross profit of the third quarter amounted to SR2,485 million compared to SR3,292 million for the same period of last year ( restated), with a decrease of 25 percent.

EBITDA for the third quarter amounted to SR1,305 million compared to SR2,359 million for the same period last year ( restated), with a decrease of 45 percent.

The net income for the third quarter amounted to SR472 million compared to SR1,632 million for the same period of last year ( restated), with a decrease of 71 percent.

Earnings per share during the third quarter amounted to SR0.61, compared to SR2.12 for the same period of the previous year (restated).

The reason for the decrease in net income for the current quarter compared to the same quarter of last year is attributed to several factors, the most important factor is the presence of nonrecurring revenues for the wholesale and carrier services during the same period of last year, in addition to the increase of depreciation expenses, sales and marketing expenses, and increase of general and administrative expenses due to the increase in provisions amounting to SR207 million, for bad debt, slow moving inventory and impairment of goodwill resulted from the company investments. Accordingly, the board of the company has tasked the audit committee with identifying the responsibility for the above and to take all necessary actions.

The board also decided to temporarily stop the new capital leases contracts. Furthermore, the board assigned an internal committee to work with one of the international consultants to study the feasibility of continuing the capital lease contracts.