RIYADH – Etihad Etisalat (Mobily) posted a net profit of SR1.34 billion in the first quarter of 2013, an increase of 11 percent compared to SR1.21 billion for the corresponding period of 2012. However, it dropped 29 percent compared with the previous quarter at SR1.88 billion, the company said in a statement Saturday. Gross profit was SR2.73 billion compared to SR2.61 billion for the corresponding quarter of 2012, an increase of 4 percent. Operating profit was SR1.36 billion, compared to SR1.25 billion for the corresponding quarter, an increase of 9 percent. Earnings per share was SR1.74, compared to SR1.57 for the corresponding quarter. Earnings per share from net profit for the period is calculated based on the weighted average for the outstanding number of ordinary shares amounting to 770 million shares as of March 31, 2013 and 2012. The increase in net profit was mainly due to growth in data revenues and maintaining the trend of increased revenues from the business sector. Although 1Q net profit is less than in 4Q, 2012, this is a standard seasonal deviation attributable to the final quarter coinciding with the Haj season and year-end events. Mobily Chairman Eng. Abdulaziz Al Saghyir said the growth of the company will continue to come from the business and data sectors, as the company has a clear vision of these needs in the Kingdom, backed by ownership of the largest 3G and 4G networks in the Middle East and North Africa. Growth of the Saudi telecoms sector will be strongly supported by the positive nature of the Kingdoms economy and increased governmental spending. Business and data sectors are expected to contribute 12 percent and 30 percent respectively to 2013 total revenues. In the 1Q 2013 revenues were SR5.63 billion, compared to SR5.01 billion for the corresponding quarter, an increase of 12 percent. This stems from the growth in sales of smart phones and the increase in data revenues, which accounted for 30 percent of turnover for the period, compared to 23 percent in 1Q 2012. Besides, business sector revenues increased by 43 percent compared to the same period of 2012. EBITDA amounted to SR1.98 billion compared to SR1.81 billion in 1Q, 2012, an increase of SR164 million. Despite lower margins on sales of smart phones, the EBITDA margin for 1Q was 35 percent (1Q, 2012: 36 percent). The Board of Directors is expected to meet today (April 21) to decide interim dividend distribution for 1Q and the date of payment to shareholders. Mobily has signed a strategic partnership agreement with (Virtustream) to provide cloud computing services and create the necessary infrastructure to support the business sector based on international standards of efficiency and reliability. Mobily has also signed an agreement with (Jasper), the international provider of M2M solutions, enabling increased efficiency of wireless connectivity between different systems and offering services in smart navigation and remote control systems. – SG
