Mobily earns 130 million riyals in the first quarter

Saudi Mobily Company recorded a growth of 93% in the profits for the first quarter of 2020 to reach 130 million riyals, compared to 67.3 million riyals in the first quarter of 2019.

According to ArabiaNet, Mobily said that the increase in its profits is due to the company continuing to improve its revenues for the tenth quarter in a row, as revenues for the first quarter of the year 2020 amounted to SAR 3,600 million compared to 3,201 million riyals in the same quarter of the previous year, an increase of 12.5%. This is mainly due to the increase and improvement of the individual customer base, the growth of business sales and wholesale sales, and the growth of the optical fiber base.

The total profit amounted to 2,065 million riyals in the first quarter of the year 2020 AD, compared to 1,839 million riyals in the same quarter of the previous year, an increase of 12.3%, mainly due to the improvement in revenue.

Mobily incurred losses in the previous quarter of 125 million riyals.

The company continued to raise profit before deduction of consumption, amortization, Islamic murabaha and Zakat costs (EBITDA) to reach 1,285 million riyals in the first quarter of the year 2020 AD, compared to 1,272 million riyals for the same quarter of the previous year, an improvement of 1%. This improvement is due to the increase in revenue.

The EBITDA margin ratio decreased to 36% in the first quarter of the year 2020 compared to 40% in the same quarter of the previous year.

Operating profit during the first quarter of the year 2020 improved by 7% to reach SAR 296 million, compared to an operating profit of SAR 277 million in the same quarter of the previous year, due to the improvement in profit before depreciation, amortization and Islamic Murabaha and Zakat costs (EBITDA).

In a related context, the financing expenses for the first quarter of the year 2020 decreased to SR 162 million, compared to SAR 212 million for the first quarter of the year 2019, a decrease of 23.7% as a result of the company's efforts to reduce financing expenses by refinancing a large portion of existing loans at the end of last year. In addition to the decrease in the interest rate among Saudi banks (SIBOR).

The Zakat expense for the first quarter of the year 2020 was 14 million riyals, compared to the Zakat expense of 9 million riyals for the same quarter of the previous year.