JEDDAH – Etihad Etisalat Co. (Mobily) reported an 11 percent increase in fourth-quarter profit because of more revenue from subscriber roaming charges and data services. Net income rose to SR1.9 billion ($507 million) from SR1.7 billion in the same period a year earlier, the company said in a statement Saturday. The fourth-quarter gain is “attributable to the rise in data revenues,” the company said. “The number of visitors roaming on the company's network increased by 24 percent during the Haj season.” Full year net profit meanwhile rose 18 percent to SR6.02 billion, compared with SR5.08 billion in the same period of last year. Earnings per share climbed to SR8.60 from SR7.26. Revenue increased 17 percent to SR6.8 billion from SR5.8 billion in the fourth quarter a year before, Mobily said. That growth is due to a 41 percent rise in data revenue, while sales from the fiber optic and 4G networks advanced more than 70 percent on the previous year, it said. Fourth-quarter operating profit increased 8 percent to SR1.9 billion, the company said. It recommended a dividend of SR1.15 per share. Engineer Abdulaziz Saleh Alsaghyir, Chairman of the Mobily Board of Directors, said that the company's share increased by 45 percent during 2012, among the highest gains in the telecommunications sector worldwide. He added that if the cash dividend distributed by the company is taken into account, shareholders returns for 2012 will reach more than 54 percent. Alsaghyir stressed that the telecommunications industry in the Kingdom is still attractive, and that the company is planning to spend on the infrastructure more than SR22 billion in the next five years, taking into consideration the return on the invested capital, to maintain its leadership in the mobile broadband sector, expand its fiber optic network across the Kingdom so that it reaches 500,000 residential units by the end of 2013. He confirmed that this strategy aims to maintain the company's competitiveness and raise network capacities to cater for the increasing needs of Internet users and the business sector, and will contribute to positive performance in the coming years. Alsaghyir added that the commitment to capital expenditure will keep the company's infrastructure up-to-date so as to achieve mid to long-term growth terms, and that the company's strong financial position and executive capabilities along with lower net debt/EBITDA will allow optimum utilization of financial resources. The entry of a new mobile virtual network operator (MVNO) would not necessarily lead to price competition, and Mobily expected an increase in cash dividend distribution to shareholders with the continuing growth in profits. Mobily Board of Directors has recommended cash dividend distribution of SR885.50 million for the fourth quarter of 2012, equivalent to SR1.15 per share, representing 11.50 percent of the nominal value of the share, in addition to the interim dividends of SR2,100 million in the first three quarters of the year. — SG
