Revenues:

Q3 2018 revenues witnessed a YoY growth of 6.1%. Q3 2018 revenues amounted to SAR 2,976 million compared to SAR 2,806 million in Q3 2017. This is mainly due to the improvement in consumer revenues, growth in FTTH sales and growth in business unit revenues driven by sales to government sectors.

This was achieved despite the market, regulatory and economic challenges including the reduction of mobile termination rates.

Taking out the impact of the decrease of the mobile termination rates, quarterly revenues would have grown by 8.0%.

Gross profit:

Q3 2018 Gross profit increased by 5.2% to SAR 1,758 million versus SAR 1,672 million in Q3 2017. This is mainly due to the increase in revenues partially absorbed by the increase in cost of sales.

EBITDA:

Mobily succeeded in improving its EBITDA reaching SAR 1,088 million in Q3 2018 versus SAR 904 million in Q3 2017, or an increase of 20%. This is reflecting the company efficiency in managing its operational expenses, the decrease in the general and administrative expenses and the reclassification of SAR 84 million provision (built in Q1) from pre-EBITDA to post EBITDA, the reclassification did not affect the calculated net losses.

EBITDA margin reached 36.6% for Q3 2018 versus 32.2% for the same quarter last year.

Operational profit (EBIT):

Q3 2018 operational profit reached SAR 108.1 million compared to operational losses of SAR 3.6 million in Q3 2017 reflecting the improvement in EBITDA.

Financial charges and Zakat:

Q3 2018 financial charges increased to SAR 206 million versus SAR 159 million in Q3 2017 due in particular to the increase in SIBOR and ceasing capitalization of some expenses related to the debt.

Zakat provision amounted to SAR 55 million compared to Zakat expense of SAR (15 million) in Q3 2017 as a result of reversing certain Zakat provisions, the net impact of which is SAR 71 million.

Revenues:

Q3 2018 revenues witnessed a growth of 2.8% reaching SAR 2,976 million compared to SAR 2,894 million in Q2 2018. This is mainly due to the improvement in consumer revenues supported by a successful Hajj season, growth in FTTH sales and growth in business unit revenues driven by sales to government sectors which enabled the company to contain the low summer season.

Gross profit:

Gross profit slightly decreased by 0.9% reaching SAR 1,758 million compared to SAR 1,775 million in Q2 2018.

EBITDA:

Q3 2018 EBITDA improved to reach SAR 1,087 million compared to SAR 1,066 million in Q2 2018, or a 2% increase.

EBITDA margin reach 36.6% in Q3 2018 as in the previous quarter.

Operational profit (EBIT):

Q3 2018 operational profit amounted to SAR 108 million versus SAR 127 million in Q2 2018 a decrease of SAR 19 million.

Financial charges and Zakat:

Financial charges increased to SAR 206 million versus SAR 192 million in Q2 2018, as a result of the increase in SIBOR.

Zakat provision amounted to SAR 55 million compared to Zakat expense of SAR (20 million) in Q2 2018, as a result of reversing certain Zakat provisions, the net impact of which is SAR 71 million.

Revenues:

Revenues of the first 9 months in 2018 increased by 2.1% to SAR 8,703 million versus SAR 8,524 million for the same period last year. This has been achieved despite the market, regulatory and economic challenges, including:

(1) The reduction of mobile termination rates.

(2) The continuous adverse impact from releasing the ban on VoIP application on international calls revenue.

Taking out the impact of the decrease of the mobile interconnection rates, revenues would have grown by 2.7%

Gross profit:

Gross profit increased by 4.5% to SAR 5,196 million for the first 9 months in 2018 versus SAR 4,970 million for the same period last year. This is mainly due to the reduction of cost of sales as a result of reduction mobile termination rates.

EBITDA:

The company succeeded in the first 9 months of 2018 to raise EBITDA to reach SAR 3,190 million for the first 9 months of 2018 compared to SAR 2,735 million for the same period last year, an increase of 17%. This is reflecting the company efficiency in managing its operational expenses, the decrease in the general and administrative expenses and the reversal of certain provisions and the implementation of IFRS 15 and 9.

EBITDA margin for the first 9m in 2018 reached 36.6% versus 32.1% for the same period last year.

Operational profit (EBIT):

Operational profit for the first 9 months in 2018 amounted to SAR 336 million versus SAR 26 million for the same period last year.

Financial charges and Zakat:

Financial charges for the first 9 months in 2018 increased to SAR 585 million compared with SAR 515.8 million for the same period last year. This is mainly due to the increase in SIBOR and ceasing capitalization of some expenses related to the debt.

Zakat provision amounted to SAR 24 million compared to Zakat expense of SAR (46 million) for the same period last year, as a result of reversing certain Zakat provisions, the net impact of which is SAR 71 million.

Capex for the first 9 months in 2018 increased to SAR 2,113 million versus SAR 1,229 million in the first 9 months in 2017. This is due to continuous deployment of network modernization project that started in Q4 2017 and the capitalization of the spectrum in Q1 and Q3 2018. In addition, the same period last year witnessed a delay of some Capex to Q4 2017 until the company completed the preparation of the network modernization project.

Operational Cash Flow:

The first 9 months in 2018 Operational Cash Flow (EBITDA-CAPEX) decreased to SAR 1,078 million versus SAR 1,506 million in the first 9 months in 2017. Taking out the impact of spectrum capitalization in Q1 and Q3 2018 operational cash flow would have amounted to SAR 1,527 million representing an increase by 2% compared with the same period last year.

Debt

Mobily net debt amounted to SAR 11.6 billion at the end of Q3 2018 versus SAR 12.1 billion at the end of Q2 2018 reflecting a decrease by SAR 520 million.

There are no accumulated losses at the end of Q3 2018.