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Etihad Etisalat Co. announces its interim Financial results for the period ending on 2019-03-31 ( Three Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 3,2012,83312.9893,1621.233
Total Profit (Loss) 1,8391,66310.5831,38632.683
Profit (Loss) Operational 277101174.2572673.745
Net Profit (Loss) after Zakat and Tax 67.3-93.4-80.3-16.189
Total Comprehensive Income 47.4-92.5-62.6-24.281
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Total Share Holders Equity (after deducting minority equity) 13,81713,948-0.939
Profit (Loss) per Share 0.09-0.12
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year Mobily continued delivering positive net results for the second consecutive quarter, as Q1 2019 net result reached SAR 67.3 million compared to a loss of SAR 93.4 million in Q1 2018. This is mainly due to the following:

Revenues

Mobily continued to grow its revenues for the sixth consecutive quarter. Q1 2019 revenues amounted to SAR 3,201 Million versus SAR 2,833 Million in Q1 2018, or a YoY growth of 13.0%. This is mainly attributed to the continued growth of the subscribers base and its better mix, the growth of FTTH active base and the growth in business unit and wholesale revenues.

Gross profit

Q1 2019 Gross profit amounted to SAR 1,839 million versus SAR 1,663 million in Q1 2018, a growth of 10%. This is mainly attributed to a healthier topline that absorbed the impact of the new government royalties mechanism previously announced and the implementation of IFRS16.

EBITDA

Mobily increased its EBITDA reaching SAR 1,272 million in Q1 2019 versus SAR 1,036 million in Q1 2018, or an increase of 23%. The EBITDA increase is attributed to the implementation of IFRS16, the growth of revenues and the improvement in operational performance.

Without IFRS 16 impact, the EBITDA would have amounted to SAR 1,122 million, or an increase of 8.30% compared to Q1 2018.

EBITDA margin reached 40% for Q1 2019 versus 37% for the same quarter last year.

Without IFRS 16 impact, the EBITDA margin would have been at 35%.

Operational profit (EBIT)

Q1 2019 Operational profit amounted to SAR 277 million compared to an operational profit of SAR 101 million in Q1 2018, an increase of 174% reflecting the improvement in EBITDA.

Without IFRS 16 impact, EBIT would have amounted to SAR 245 million representing an increase of 143% compared to Q1 2018.

Financial charges and Zakat

The financial charges for Q1 2019 amounted to SAR 212 million compared to SAR 188 million in Q1 2018 representing an increase of 12.8%, mainly as a result of IFRS 16 implementation.

Without IFRS 16 impact the financial charges would have amounted to SAR 178 million representing a decrease of 5% compared to Q1 2018 reflecting the company efforts in reducing net debt and the slight decrease in funding costs.

Zakat expenses amounted to SAR -9 million compared to Zakat expense of SAR -12 million in Q1 2018.

Reason for increase (decrease) in net profit for current quarter compared to the previous quarter Mobily continued delivering positive net results for the second consecutive quarter, as Q1 2019 net result reached SAR 67.3 million compared to a net income of SAR 80.3 million in Q4 2018. This is mainly due to the following:

Revenues

Mobily continued to grow its revenues for the sixth consecutive quarter, as Q1 2019 revenues increased by 1.2% reaching SAR 3,201 million versus SAR 3,162 million in Q4 2018. This is mainly attributed to the growth of subscribers base, and its better mix, the growth in data revenues, business unit and FTTH revenues.

Gross profit

Q1 2019 Gross profit amounted to SAR 1,839 million versus SAR 1,386 million in Q4 2018 an increase of 33%. This increase is mainly attributed to the impact of booking the full increase of 2018 government royalties in Q4 2018 and the implementation of IFRS16.

EBITDA

Q1 2019 EBITDA amounted to SAR 1,272 million versus SAR 1,341 million in Q4 2018, representing a decrease of 5.1%, as Q4 2018 EBITDA contained positive one-offs resulting from the reversal of provisions related to the government fees in Q4 2018. Without these one-offs the EBITDA would have grown quarter-over-quarter.

Without IFRS 16 impact EBITDA would have amounted to SAR 1,122 million representing a decrease of 16.3% compared to Q4 2018 EBITDA.

EBITDA margin decreased to 40% in Q1 2019 versus 42% in Q4 2018.

Without IFRS 16 impact, the EBITDA margin would have reached 35%.

Operational profit (EBIT)

Q1 2019 EBIT amounted to SAR 277 million compared to an EBIT of SAR 267 million in Q4 2018, an increase of 4% reflecting the improvement in EBITDA.

Without IFRS 16 impact EBIT would have decreased by 8.3% and amounted to SAR 245 million compared to Q4 2018.

Financial charges and Zakat

The financial charges for Q1 2019 amounted to SAR 212 million compared to SAR 214 million in Q4 2018, a result of IFRS 16 implementation.

Without IFRS 16 impact the financial charges for Q1 2019 would have amounted to SAR 178 million representing a decrease by 16.8% compared with Q4 2018 reflecting the company efforts in reducing debt and the slight decrease in funding costs .

Zakat expenses amounted to SAR -9 million versus positive impact of the reversal of Zakat expense of SAR +14 million in Q4 2018.

Type of the external auditor's opinion Unmodified opinion
Reclassifications in quarter financial result Certain figures for the comparative period have been reclassified to conform to the current period presentation.
Additional Information Net Debt

Mobily net debt witnessed slight increase to SAR 11,316 million at the end of Q1 2019 versus SAR 11,288 million at the end of 2018.

CAPEX:

Capex in Q1 2019 decreased to SAR 782 million versus SAR 814 million in Q1 2018 due to the capitalization of spectrum in Q1 2018 with an amount of SAR 310 million. Excluding the spectrum, Q1 2019 Capex intensity reflects the company commitment to invest and continuous improvement of quality of service.

Operational Cash Flow:

Mobily increased its operational cash flow to SAR 490 million, supported by the increase in EBITDA as a result of the implementation of IFRS 16 and decrease in CAPEX. Q1 2019 Operational Cash Flow (EBITDA-CAPEX) amounted to SAR 490 million versus SAR 222 million in Q1 2018, representing an improvement of 121%.

Without IFRS 16 impact, the operational cash flow would have amounted to SAR 340 million representing an increase of 53% compared to Q1 2018

There are no accumulated losses at the end of Q1 2019.

The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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