Etihad Etisalat Co. announces its Interim Financial Results for the Period Ending on 2020-09-30 ( Nine Months )
Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
---|---|---|---|---|---|
Sales/Revenue | 3,355 | 3,404 | -1.439 | 3,559 | -5.731 |
Gross Profit (Loss) | 2,056 | 2,015 | 2.034 | 2,062 | -0.29 |
Operational Profit (Loss) | 356 | 262 | 35.877 | 334 | 6.586 |
Net Profit (Loss) after Zakat and Tax | 222 | 51 | 335.294 | 185 | 20 |
Total Comprehensive Income | 237 | 41 | 478.048 | 162 | 46.296 |
All figures are in (Millions) Saudi Arabia, Riyals |
Element List | Current Period | Similar period for previous year | %Change |
---|---|---|---|
Sales/Revenue | 10,513 | 9,936 | 5.807 |
Gross Profit (Loss) | 6,183 | 5,810 | 6.419 |
Operational Profit (Loss) | 987 | 801 | 23.22 |
Net Profit (Loss) after Zakat and Tax | 537 | 156 | 244.23 |
Total Comprehensive Income | 506 | 104 | 386.538 |
Total Share Holders Equity (after Deducting Minority Equity) | 14,257 | 13,874 | 2.76 |
Profit (Loss) per Share | 0.7 | 0.2 | |
All figures are in (Millions) Saudi Arabia, Riyals |
Element List | Explanation |
---|---|
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to | Mobily achieved a net profit for the third quarter of 2020, recording net profit reached SAR 222 million compared to a net profit of SAR 51 million in Q3 2019. This is mainly due to the following:
Revenues
Mobily revenues for the third quarter of 2020 amounted to SAR 3,355 million compared to SAR 3,404 million in Q3 2019 with a YoY decline of 1.43%. This slight decline is mainly attributed to the effect of the precautionary measures taken to prevent the Corona pandemic which led to reducing this year 1441 Hajj to very limited numbers of pilgrims and its effect on international roaming services in addition to the effect of the reduction of mobile termination rates.
Gross profit
Q3 2020 gross profit amounted to SAR 2,056 million versus SAR 2,015 million in Q3 2019, a growth of 2.01%. This is mainly attributed to the decline in cost of revenue.
EBITDA
Mobily continued in increasing its EBITDA to reach SAR 1,349 million in Q3 2020 compared to SAR 1,277 million in Q3 2019, or an increase of 5.65%. The EBITDA increase is attributed to the company’s efficiency in managing its operations.
EBITDA margin increased to 40.2% for Q3 2020 compared to 37.5% for Q3 2019.
Operational profit (EBIT)
Q3 2020 Operational profit amounted to SAR 356 million compared to an operational profit of SAR 262 million in Q3 2019 with an increase of 35.71% reflecting the improvement in EBITDA.
Financial charges and Zakat
Financial charges for Q3 2020 have declined to reach SAR 134 million compared to SAR 206 million in Q3 2019 representing a decrease of 35.10%, reflecting the company’s efforts to reduce the funding costs by refinancing big portion of its debts at the end of last year and the decrease in the interest rate.
Zakat expenses for Q3 2020 amounted to SAR 3 million compared to Zakat expense of SAR 16 million in Q3 2019. |
Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | Mobily achieved a net profit for the third quarter of 2020, recording net profit reached SAR 222 million compared to net profit of SAR 185 million in Q2 2020. This is mainly due to the following:
Revenues
Mobily revenues in Q3 2020 amounted to SAR 3,355 million compared to SAR 3,559 million in Q2 2020 with a decrease of 5.73%, The decrease is mainly attributed to the continued effect of the precautionary measures taken to prevent the Corona pandemic, the reduction of mobile termination rates and the decline in devices sales.
Gross profit
Q3 2020 Gross profit amounted to SAR 2,056 million compared to SAR 2,062 million in Q2 2020 with decrease of 0.29%. This slight decrease is attributed to the decrease in the revenues.
EBITDA
Q3 2020 EBITDA amounted to SAR 1,349 million compared to SAR 1,335 million in Q2 2020 with an increase of 1.03% reflecting the company’s efficiency in managing its operations.
EBITDA margin increased to 40.2% in Q3 2020 compared to 37.5% in Q2 2020.
Operational profit (EBIT)
Q3 2020 EBIT amounted to SAR 356 million compared to an EBIT of SAR 334 million in Q2 2020 with an increase of 6.55% reflecting the improvement in EBITDA.
Financial charges and Zakat
Financial charges for Q3 2020 decreased by 3.55% to reach SAR 134 million compared to SAR 139 million in Q2 2020, as a result of the decrease in the interest rate.
Zakat expenses for Q3 2020 amounted to SAR 3 million compared to Zakat expense of SAR 17 million in Q2 2020. |
Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to | Mobily achieved a net profit for the nine months of 2020 amounted to SAR 537 million compared to net profit of SAR 156 million in nine months of 2019. This is mainly due to the following:
Revenues
Mobily succeeded in growing its revenues, where nine months of 2020 revenues increased by 5.82% to reach SAR 10,513 million compared to SAR 9,936 million in nine months of 2019. This is mainly attributed to the growth in business unit revenues, the improvement in the consumer revenues, the growth of FTTH active base and the growth of wholesale revenues.
Gross profit
Gross profit for the nine months of 2020 amounted to SAR 6,183 million compared to SAR 5,810 million in nine months of 2019 with an increase of 6.42%. This is mainly attributed to the increase in revenues.
EBITDA
Mobily succeeded in increasing its EBITDA to reach SAR 3,969 million in nine months of 2020 compared to SAR 3,770 million in nine months of 2019 with an increase of 5.28%. The EBITDA increase is attributed to the company’s efficiency in managing its operations and the improvement in revenues.
EBITDA margin was stable for nine months of 2020 reaching 37.8% compared to 37.9% for nine months of 2019.
Operational profit (EBIT)
Nine months of 2020 Operational profit amounted to SAR 987 million compared to an operational profit of SAR 801 million in nine months of 2019 with an increase of 23.24%, reflecting the improvement in EBITDA.
Financial charges and Zakat
Financial charges for nine months of 2020 has declined to reach SAR 434 million compared to SAR 635 million in nine months of 2019 with a decrease of 31.65%, reflecting the company’s efforts to reduce the funding costs by refinancing big portion of its debts at the end of last year, and the decrease in the interest rate.
Zakat expenses for the current period amounted to SAR 34 million compared to Zakat expense of SAR 40 million in nine months of 2019. |
Basis of the External Auditor's Opinion | Unmodified opinion |
Reclassification of Comparison Items | Certain figures for the comparative period have been reclassified to conform to the current period presentation. |
Additional Information | Net Debt
Mobily net debt amounted to SAR 10,915 million at the end of Q3 2020 compared to SAR 10,600 million at the end of Q2 2020 with an increase of 2.98%.
CAPEX:
Capex in nine months of 2020 amounted to SAR 1,765 million compared to SAR 1,464 million in nine months of 2019.
Operational Cash Flow:
Mobily Operational Cash Flow (EBITDA-CAPEX) for the first nine months of 2020 reached SAR 2,204 million compared to SAR 2,306 million in the nine months of 2019 with a decrease of 4.45%.
The financial statements for the Nine Months ended 30th September 2020 will be available through Mobily Investor Relations Website, and Mobily IR App. |
Comments