Mobily exceeds expectations with $208m net profit for 2020

Arab News
Mobily’s revenues grew mainly due to an increase in data revenues, business unit and wholesale revenues, and its subscriber base.
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Mobily’s net profit for the fiscal year ending Dec. 31, 2020 reached SR783 million ($208.8 million), reflecting an increase of 2,425 percent from the net profit of SR31 million in 2019. This financial achievement has been attributed to a number of reasons, including:

Revenues:

Mobily succeeded in growing its revenues in 2020 to SR14,046 million, a 4.4 percent increase from SR13,450 million in 2019. This is mainly due to an increase in data revenues, business unit and wholesale revenues, and its subscriber base.

Gross profit:

The gross profit for 2020 amounted to SR8,152 million, a 4.5 percent increase from SR7,800 million in 2019. This is mainly attributed to the increase in revenues.

EBITDA:

The earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) were recorded as the highest in the last seven years, reaching SR5,350 million in 2020, an 8.2 percent increase from SR4,947 million in 2019. This is attributed to the company’s efficiency in managing its operations and the growth of revenues. The EBITDA margin rose to 38.1 percent for 2020 compared to 36.8 percent in 2019.

EBIT:

The operational profit or earnings before interest and taxes (EBIT) amounted to SR1,367 million in 2020, an increase of 41.3 percent compared to the EBIT of SR967 million in 2019.

Financial charges and zakat:

The financial charges for 2020 declined to SR561 million, a decrease of 39.6 percent compared to SR929 million in 2019. This reflects the company’s efforts to reduce the funding costs by refinancing big portions of its debts at the end of 2019 as well as the decrease in the interest rate. The zakat expense for 2020 was SR43 million, whereas the corresponding amount for 2019 was SR49 million.

Net debt:

Mobily’s net debt amounted to SR10,602 million at the end of 2020, whereas it was SR10,626 million at the end of 2019.

CapEx:

The capital expenditures (CapEx) in 2020 amounted to SR2,792 million, compared to SR2,760 million in 2019.

EBITDA-CapEx:

Mobily substantially improved its 2020 EBITDA-CapEx or operational cash flow to reach SR2,558 million, an increase of 17 percent compared to SR2,187 million in 2019.