Etihad Etisalat (Mobily), Saudi Arabia’s second largest mobile operator by subscribers, has announced its financial results for the three months ended 31 March 2014, reporting 12% annual revenue growth, to SAR6.237 billion (USD1.663 billion). According to a press release on the Saudi Stock Exchange’s (Tadawul’s) website, the growth was attributed to an increase in revenues generated by the company’s business and data sectors. Gross profit for the period under review amounted to SAR1.400 billion, a 16.33% improvement on the SAR2.694 billion reported in 1Q13. EBITDA increased by 7.60% to SAR9.190 billion over the twelve month period. Further, Mobily also saw an improvement in its gross profit margin, to 50% in 1Q14 from 48% reported at end-March 2013, with the growth mainly attributed to ‘improved operational efficiency and revenue structure.’
Abdulaziz Al Saghyir, Mobily’s chairman of the board of directors, stated that the company has already succeeded in connecting 700,000 residential units with fibre-to-the-home (FTTH) technology, which provides maximum transmission speeds of up to 200Mbps. Al Saghyir added that, in order to better serve corporate customers, the group has adopted a new operational unit called ‘Mega Projects’. This new department will be responsible for setting up long-term deals and will chiefly target the governmental, private and real-estate sectors. Further, the company is currently working to establish a new operational model for its consumer unit by mid-2014.