Mobily's net income up 21%

Etihad Etisalat (Mobily) has reported its Q1, 2012 net income of SR1.21 billion compared to SR998 million for the same period last year, with a growth of 21 percent and a decline of 29 percent over Q4, 2011 results of SR1.70 billion, according to Tadawul website. Gross profit for Q1, 2012 amounted to SR2.61 billion compared to SR2.29 billion for the same period last year, with a growth of 14 percent. Operating income for Q1, 2012 amounted to SR1.25 billion compared to SR1.05 billion for the same period last year, with a 19 percent growth. Earnings per share (EPS) for the 3-month period amounted to SR1.72 compared to SR1.43 for the same period last year. The results of the last quarter of the year are usually better than those of the first quarter of the year, as the fourth quarter coincides with the Haj season and other year-end events. Thus, for the sake of a fair comparison, showing the evolution of the company's financial performance, the results of the first quarter of 2012 should be compared with the same quarter of the previous year, the company stated. The revenue of Q1, 2012 amounted to SR5.00 billion against SR4.48 billion for the same quarter last year, an increase of 12 percent. The increase in revenue is attributable to the higher revenue from voice services with the increase in the number of minutes of use, the continued increase in the number of postpaid subscribers and the increase in business sector revenue. Data revenue recorded an increase of 28 percent during the first quarter of this year compared to the corresponding period of the previous year (23 percent of the total revenue of the first quarter of the current year against 20 percent for the same period of the previous year. The EBITDA margin amounted during Q1, 2012 to 36 percent compared to 35 percent for the same quarter last year. Mobily's Chairman Abdulaziz Alsaghyir indicated that as part of opening the door to more diverse revenue streams, the company would collaborate with Etihad Atheeb Telecom (GO) to provide fixed voice services to a number of commercial and residential complexes, which will be agreed upon in due course. This cooperation comes from the standpoint that the integration of the services of the two companies would meet the increasing requirements of the public and commercial sectors in light of the accelerated developments in Saudi Arabia. Such cooperation would enhance diversity in services, and quality and speed of implementation. Alaghyir added that the company does not intend to enter into price war, but it will compete in innovation that is a beneficial competition for both telecom companies and customers, as it allows customers to benefit from more sophisticated services and better prices.