Mobily’s profits grew by 37.2% during Q1 to 638 million riyals

The net profit of Etihad Etisalat Company (Mobily) grew during the first quarter to 638 million riyals, compared to 465 million riyals in the same quarter of last year, by 37.2%. This came after today’s announcement of the preliminary financial results for the period ending on March 31, 2024 (three months).

The company recorded an increase in revenues of 11.6% during the first quarter, reaching 4.5 billion riyals, compared to 4 billion riyals recorded in the same quarter of last year.

Operating profit reached 753 million riyals in the first quarter, compared to 636 million riyals in the same quarter of the previous year, an increase of 18.3%.

Earnings per share in the current period reached 0.83 riyals, compared to 0.6 riyals in the same period last year.

During the first quarter of the fiscal year 2024, Mobily continued to achieve strong growth in its revenues to reach 4,545 million Saudi riyals compared to 4,070 million Saudi riyals in the same quarter of the previous year, an increase of 11.7%, and this is mainly due to the growth in revenues of all the company’s sectors, in addition to increase the customer base.

Mobily achieved a net profit of 638 million Saudi riyals for the first quarter of the fiscal year 2024, compared to 465 million Saudi riyals during the same quarter of the previous year, an increase of 37.2%, mainly due to the following:

Gross profit:

As a result of the growth in revenues, gross profit increased by 7.7% to reach 2,445 million Saudi riyals in the first quarter of the fiscal year 2024, compared to 2,270 million Saudi riyals for the same quarter of the previous year.

Profit before deducting depreciation, amortization, Islamic Murabaha costs and Zakat (EBITDA):

Profit before deducting depreciation, amortization, Islamic Murabaha costs and Zakat (EBITDA) increased to reach 1,651 million Saudi riyals during the first quarter of the fiscal year 2024, compared to 1,562 million Saudi riyals for the same quarter of the previous year, an increase of 5.7%, and this increase is due to the growth in revenues. Company.

While the profit margin before deducting depreciation, amortization, Islamic Murabaha costs, and Zakat (EBITDA margin) reached 36.3% in the first quarter of the fiscal year 2024, compared to 38.4% for the same quarter of the previous year.

Operating profit:

Operating profits increased during the first quarter of the fiscal year 2024 by 18.4% to reach 753 million Saudi riyals, compared to 636 million Saudi riyals in the same quarter of the previous year. This is due to the growth in profit before deducting depreciation, amortization, Islamic Murabaha costs and zakat (EBITDA).

Financing expenses, zakat, and income tax:

Financing expenses for the first quarter of the fiscal year 2024 decreased by 3.1% to reach 167 million Saudi riyals compared to 172 million Saudi riyals in the same quarter of the previous year, due to the decrease in the debt portfolio.

Zakat and income tax expenses for the first quarter of the fiscal year 2024 amounted to 35 million Saudi riyals, compared to a zakat and income tax expense of 42 million Saudi riyals for the same quarter of the previous year.

Mobily achieved growth in its revenues during the first quarter of the fiscal year 2024, reaching 4,545 million Saudi riyals, compared to 4,306 million Saudi riyals in the previous quarter, an increase of 5.5%. This is mainly due to the growth in revenues of all the company’s sectors, in addition to the increase in the customer base.

Mobily also recorded a net profit of 638 million Saudi riyals in the first quarter of the fiscal year 2024, compared to a net profit of 746 million Saudi riyals for the previous quarter, which represents a decrease of 14.5%, mainly due to the following:

Gross profit:

Mobily achieved an increase in gross profit of 7.9%, reaching 2,445 million Saudi riyals in the first quarter of the fiscal year 2024, compared to 2,265 million Saudi riyals for the previous quarter, mainly due to growth in revenues.

Profit before deducting depreciation, amortization, Islamic Murabaha costs and Zakat (EBITDA):

Profit before deducting depreciation, amortization, Islamic Murabaha costs and Zakat (EBITDA) reached 1,651 million Saudi riyals in the first quarter of the fiscal year 2024, compared to 1,867 million Saudi riyals for the previous quarter, a decrease of 11.5%, due to the positive impact of reversing the provision for potential liabilities of 202 million. Saudi riyals in the fourth quarter of 2023.

The profit margin before deducting depreciation, amortization, Islamic Murabaha costs, and Zakat (EBITDA margin) reached 36.3% in the first quarter of the fiscal year 2024, compared to 43.3% for the previous quarter.

Operating profit:

Operating profits during the first quarter of the fiscal year 2024 amounted to 753 million Saudi riyals, compared to operating profits of 983 million Saudi riyals in the previous quarter, a decrease of 23.4%. This is due to the decrease in profit before deducting depreciation and amortization and Islamic Murabaha and Zakat costs (EBITDA).

Financing expenses, zakat, and income tax:

Financing expenses for the first quarter of the fiscal year 2024 decreased by 7.2% to reach 167 million Saudi riyals compared to 180 million Saudi riyals for the previous quarter, due to the decrease in the debt portfolio.

Zakat and income tax expenses for the first quarter of the fiscal year 2024 amounted to 35 million Saudi riyals, compared to a zakat and income tax expense of 95 million Saudi riyals for the previous quarter.

The auditor’s report included, in another matter paragraph, the following:

The Group’s interim condensed consolidated financial statements for the three-month period ending on March 31, 2023 were examined by another auditor, who expressed an unmodified conclusion on those interim condensed consolidated financial statements on Shawwal 21, 1444 AH, corresponding to May 11, 2023 AD.

Capital expenditures for the first quarter of the fiscal year 2024 amounted to 223 million Saudi riyals, compared to 224 million Saudi riyals for the same quarter of the previous year.

Profit before deducting depreciation and amortization, Islamic Murabaha costs, and Zakat also increased after deducting capital expenditures for the first quarter of the fiscal year 2024, reaching 1,428 million Saudi riyals, compared to 1,338 million Saudi riyals for the same quarter of the previous year, with a growth of 6.7%.

It is worth noting that during the past 12 months, Mobily reduced its financing portfolio by more than 2.3 billion Saudi riyals.

We would like to draw the attention of our esteemed shareholders to the fact that the interim condensed consolidated financial statements for the period ending on March 31, 2024 AD will be available on the Investor Relations application of Etihad Etisalat Company (Mobily) for smartphones and tablets, and through the company’s website on the Investor Relations page, after publishing it on Tadawul website.