Typography

Mobily reduced its net losses from SAR 352.7 million in H1 2017 to SAR 172 million in H1 2018 representing a decrease in net losses by 51.2%. This is mainly due to the increase in gross profit driven by revenues increase and decrease in cost of sales due to the reduction of mobile termination rates.

H1 2018 revenues increased slightly by 0.14% to reach SAR 5,727 million against SAR 5,719 million in H1 2017. This has been achieved despite the market, regulatory and economic challenges, including the reduction of mobile termination rates and the continuous impact from permitting of VoIP application on international calls revenue. Taking out the impact of the decrease of the mobile interconnection rates, revenues would have grown by 2.1%

H1 2018 Gross profit increased by 4.2% to reach SAR 3,438 million against SAR 3,298 million in H1 2017. This is mainly due to the reduction of cost of sales as a result of mobile termination rates.

The company successfully improved its EBITDA to reach SAR 2,103 million for H1 2018 compared to SAR 1,832 million for H1 2017 resulting in an increase of 15%. This is due to the company efficiency in managing its expenses, the reversal of certain provisions, and the implementation of IFRS 15 and 9. H1 2018 EBITDA margin reached 36.7% against 32% for H1 2017.

H1 2018 operational profit amounted to SAR 228 million against SAR 30 million in H1 2017.
Despite the company's success in deleveraging net debt, H1 2018 interest and financial charges increased to SAR 380 million compared with 357. This is mainly due to ceasing capitalization of some expenses related to the debt and the increase in SIBOR.

H1 2018 total comprehensive losses decreased by 43%, to SAR 196 million against SAR 346 million losses for H1 2017.

Mobily is reducing its losses for the second consecutive quarter, as Q2 2018 net results improved by 58.5% from net losses of SAR 189.6 million in Q2 2017 to net losses of SAR 78.6 million in Q2 2018. This is mainly due to the increase in gross profit as a result of revenue growth and decrease in cost of sales.

Mobily succeeded for the first time in the last five years in growing its quarterly revenues (YoY), as Q2 2018 revenues amounted to SAR 2,895 million against SAR 2,854 million for Q2 2017 reflecting an increase of 1.4%. This is mainly due to the stabilization of subscriber's base, the improvement of subscribers mix, the increase of data and the growth of FTTH and business unit's revenues.

This was achieved despite the market, regulatory and economic challenges including the reduction of mobile termination rates.

Taking out the impact of the decrease of the mobile termination rates, revenues would have grown by 3.4%.

Q2 2018 gross profit increased by 8.7% to SAR 1,775 million against SAR 1,633 million in Q2 2017. This is mainly due to the increase in revenues and the decrease in cost of sales resulting from the reduction of the mobile termination rates.

Mobily continued for the 4th consecutive quarter to improving its EBITDA which reached in Q2 2018 SAR 1,066 million against SAR 900 million in Q2 2017, an increase by 18%. This is reflecting the company efficiency in managing its operational expenses. EBITDA margin reached 36.8% for Q2 2018 against 31.5% for the same quarter last year.

Q2 2018 operational profit reached SAR 127 million compared to operational losses of SAR 5.5 million in Q2 2017 reflecting the improvement in EBITDA which was partially reduced by the increase in depreciation and amortization, due to the company's continued investments.

Q2 2018 financial charges increased to SAR 192 million against SAR 162.7 million in Q2 2017 as a result of ceasing capitalization of some expenses related to the debt and the increase in SIBOR.

Q2 2018 total comprehensive loss amounted to SAR 104 million against a loss of SAR 190 million for the same quarter last year, a reduction in losses by 45%.