Mobily announces net profit of SAR35.4m in first half of 2016

Mobily announces net profit of SAR35.4m in first half of 2016

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net profit of Mobily

Mobily’s net profit of SAR35.4m in the first half of 2016

Saudi Arabia’s mobile operator Etihad Etisalat (Mobily) has announced its financial results for the 6 months ended 30 June 2016, reporting a 7% decrease in revenues year-on-year to SAR6.729 billion (USD975 million), down from SAR7.236 billion in H1 2015.The revenue decreases was mainly due to decreases in interconnection revenues, as a direct result of the new mobile termination rates (MTRs) unveiled in April 2016, coupled with a drop in handset sales.Further, a SAR1.238 billion increase in EBITDA to SAR2.246 billion in 1H16 was attributed to growth in gross profit by SAR214 million (reflecting continuous cost optimisation efforts) and an increase in general and administration expenses by SAR934 million in H1 2015 (due to booking a SAR800 million additional doubtful debt provision towards Zain Saudi Arabia), with EBITDA margin improving to 33.4% (13.9% in 1H15).Net income also grew, with the operator reporting net profit of SAR35.4 million, up from net loss of SAR945.4 million in the corresponding period of 2015.