Mobily profits increase to SR373 mln during Q3, by 33%

Etihad Etisalat Company “Mobily” revealed that the net profit after zakat and tax in the third quarter increased to SR373 million, compared to SR281 million in the same quarter of last year, at a rate of 32.7%.
This came after the announcement on Sunday of the preliminary consolidated financial results for the period ending on September 30, 2022 (nine months).
The operational profit amounted to SR534 million in the third quarter, compared to SR423 million in the same quarter of the previous year, an increase of 26.2%.
The net profit after zakat and tax in the 9-month period amounted to SR1.05 billion, compared to SR751 million in the same period last year, a growth of 52.7%.
The gross shareholders’ equity “without minority rights” amounted to SR15.7 billion in the current period, compared to SR14.8 billion in the same period last year, an increase of 5.9%.
Profits per share in the current period reached SR1.37, compared to SR0.97 in the same period last year.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:
Mobily achieved a net profit of SR373 million for Q3 2022, a 32.74% increase from SR281 million in Q3 2021, due to the following:
Revenue
Mobily continued to grow its revenue to reach SR3,828 million in Q3 2022, a 6.16% growth from SR3,606 million in Q3 2021. The increase in Mobily’s revenue was mainly driven by the growth of all revenue streams, with healthy growth in the FTTH active base and the overall subscriber base.
Gross Profit
Gross profit increased by 5.22% in Q3 2022, reaching SR2,300 million from SR2,186 million in Q3 2021, mainly due to the improvement in revenues.
EBITDA
Mobily achieved an EBITDA of SR1,487 million in Q3 2022, an increase of 7.01% compared to SR1,389 million in Q3 2021. The increase in EBITDA mostly reflects the growth in revenues and the company’s efficiency in managing its operations.
EBITDA margin increased to reach 38.8% in Q3 2022 versus 38.5% in Q3 2021.
Operational profit (EBIT)
Operational profit increased by 26.24%, reaching SR534 million in Q3 2022 from SR423 million in Q3 2021 due to the increase in EBITDA.
Financial charges and Zakat
Financial charges increased by 19.71% in Q3 2022 to reach SR150 million from SR125 million in Q3 2021, reflecting the increase in interest rate.
Zakat expense is at SR21 million in Q3 2022 compared to SR18 million in Q3 2021.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
Mobily achieved a net profit of SR373 million for Q3 2022, a 3.61% increase from SR360 million in Q2 2022, due to the following:
Revenue
Mobily’s revenue amounted to SR3,828 million in Q3 2022, representing a decrease of 1.82% from SR3,899 million in Q2 2022. This is mainly attributed to the seasonality nature of devices sales in the Consumer segment.
Gross Profit
Gross profit decreased by 1.41% in Q3 2022, to reach SR2,300 million from SR 2,333 million in Q2 2022, mainly due to the decrease in revenues.
EBITDA
Mobily delivered an EBITDA of SAR 1,487 million in Q3 2022 compared to SAR 1,482 million in Q2 2022, an increase of 0.29% due to the company’s efficiency in managing its operations.
The EBITDA margin reached 38.8% in Q3 2022 compared to 38.0% in Q2 2022.
Operational profit (EBIT)Operational profit increased by 2.89% in Q3 2022, reaching SR 534 million from SR519 million Q2 2022, due to the increase in EBITDA.
Financial charges and Zakat
Financial charges increased by 5.06% in Q3 2022 to reach SAR 150 million from SAR 143 million in Q2 2022, as result of the increase in interest rate.
Zakat expense decreased by SR21 million in Q3 2022 compared to SAR 25 million in Q2 2022.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
Mobily achieved a net profit amounted to SR 1,051 million for the current period ended 30 September 2022 compared to a net profit of SR 751 million for the similar period of the previous year, representing an increase of 39.95%. This is mainly due to the following:
Revenues
Mobily succeeded in growing its revenues by 5.49% to reach SR11,537 million in the current period versus SR10,937 million for the similar period of the previous year. This is mainly attributed to the growth of all revenue streams, with a healthy growth in the FTTH active base and the overall subscriber base.
Gross profit
Gross profit for the current period amounted to SR6,871 million versus SR6,405 million for the similar period of the previous year, a growth of 7.28%. This is mainly attributed to the improvement in revenues.
EBITDA
Mobily succeeded in increasing its EBITDA by 7.72% to reach SR4,414 million in the current period versus SR4,098 million for the similar period of the previous year. The EBITDA increase is attributed to the improvement in revenues and the company’s efficiency in managing its operations.
EBITDA margin increased to 38.3% in the current period versus 37.5% for the similar period of the previous year.
Operational profit (EBIT)
Operational profit for the current period increased by 29.25% to reach SR 1,520 million compared to an operational profit of SR 1,176 million for the similar period of the previous year, reflecting the improvement in EBITDA.
Financial charges and Zakat
The financial charges of the current period amounted to SR 418 million compared to SR 373 million for the similar period of the previous year, representing an increase of 11.95% due to the increase in interest rate.
Zakat expense for the current period amounted to SR 76 million compared to Zakat expenses of SR 56 million for the similar period of the previous year.
Certain comparative figures have been reclassified to conform to the current period’s presentation.
CAPEX
CAPEX for the first nine months of 2022 amounted to SR 935 million versus SAR 885 million for the similar period of the previous year.
Operational Cash Flow
Mobily delivered a solid Operational Cash Flow (EBITDA-CAPEX) in the first nine months of 2022 at SR 3,479 million versus SR 3,213 million for the similar period of the previous year, representing an increase of 8.28%.
The condensed consolidated interim financial statements for the period ended 30th September 2022 will be available through Mobily’s Investor Relations Website, and Mobily’s IR App on smartphones and tablets, after being published on the Saudi Exchange website.