Mobily reports outstanding 2021 net income growth of 36.8% to SAR 1,072 mn with proposed cash dividends raised by 70% YoY
- Mobily delivers highest top- and bottom-line levels since 2014, reaching SAR 14.8 bn and 1.1 bn respectively in 2021
- Operational Cash Flow2 increases by 36.9% to SAR 3.5 bn, thanks to steady growth in EBITDA coupled with CAPEX ramp-down on completion of strategic objectives
- Solid set of results supports the Board’s recommendation to raise cash dividends by 70% to SAR 0.85/share for 2021 from SAR 0.50/share for 2020
Riyadh, Saudi Arabia – February 21, 2022 – Etihad Etisalat Company (“Mobily” or the “Company”), a leading Saudi Arabian telecommunications services provider, announces its financial results for FY 2021.
Net income showed significant increase by 36.8% YoY on the back of healthy growth in revenue coupled with margin stability owing to tight control of costs. Based on the solid performance, on November 24, 2021, the Board of Directors recommended to the Annual General Assembly the distribution of cash dividends amounting to SAR 654.5 million, equivalent to SAR 0.85/share, for 2021, representing a 70% increase over the cash dividends distributed in 2020.
Eng. Salman Bin Abdulaziz Al Badran, Chief Executive Officer at Mobily commented: “All sectors in Mobily showed significant performance in 2021, and as a result, Mobily was able to achieve significant operational successes and meet ambitious targets in line with our strategy of growing core sectors while optimizing efficient delivery of services and products. Highlights for the year included the digital enhancements, as well as a substantial increase in our FTTH customer segment. Our Business Unit achieved excellent results in servicing a growing range of company accounts, and we were delighted to facilitate a Kingdom-wide health information system. Our notable growth in net income demonstrates the strength and resilience of our business model, and we look forward to further expand our business in the coming years.”
Khalid Abanami, Chief Finance Officer at Mobily commented: “Sales in all of the company segments went from strength to strength as the year progressed, enabling the Company to increase its year-on-year revenues in 2021 after successfully managing pandemic-related headwinds in the early part of the year. Thanks to our continued focus on effective cost management and streamlining efficiencies in areas including customer care, the launch of several enterprise projects, and expansion of 5G services, we were able to improve our performance and solidify our position as a leading telecommunications provider in the Kingdom. Furthermore, we are delighted that our robust financial position supported the recommendation of a higher dividend payout for our shareholders.”
Performance Highlights
Mobily managed to successfully grow the Consumer segment’s revenues over the course of 2021, despite a slow return to pre-pandemic travel that not only affected sales and revenues in Q1 but further drove a dip in roaming returns due to the restriction in inward Hajj and Umrah travel from abroad.
The Company’s stores resumed normal operations and contributed significantly to monthly sales. In addition, digital channels, supported the introduction of new services and products, including carefully planned digital promotions and innovative new Family and eSIM50 packages.
As the Company continued to introduce 5G across a wider range of geographies, data uptake and average revenue per user saw a rapid increase across a number of GSM and data packages in 2021. In parallel, Mobily expanded fixed wireless access in 5G coverage areas, which supported growth in the home segment revenue and customer base. Similarly, FTTH saw steady growth in 2021, driven by consumers’ high demand for premium home services.
Mobily ended 2021 with the highest-ever revenue and gross margins as well as best cash collection performance in the Business segment. By focusing on new customer acquisitions and improving the value proposition for existing clients, the Company was able to mitigate threats to its business that were caused by the slow economic recovery in 2021.
Mobily continued to focus on prominent Small and Medium-sized Businesses (SMBs) and Government sector through its highly experienced sales and presales teams. The Company further invested in enhancing its customer service and experience, resulting in a significant growth in its customer base across the Kingdom.
Similar to the Consumer segment, Mobily continued to innovate and drive digitization in the Business segment, in line with the objectives outlined in its GAIN strategy. The Company made several strategic investments in digital solutions, and expects to succeed in capturing the growth potential in the market. Examples of other digital achievements included the introduction of a disaster recovery and back-up service solution.
Financial Performance Highlights – FY 2021
The company’s revenue increased by 5.6% YoY to reach SAR 14,834 million, driven by strong growth in the Business and Consumer segments, with the latter showing promising growth in Fibre-To-The-Home (FTTH). Mobily’s subscriber base continued to exhibit healthy growth. EBITDA1 recorded SAR 5,594 million, representing a 4.6% YoY growth, mainly on the back of the increase in the top-line. The EBITDA margin reached 37.7% compared to 38.1% last year.
Additionally, Net Income increased by 36.8% YoY to reach SAR 1,072 million, predominantly owing to the solid growth in the top-line in addition to a 10% YoY decrease in finance charges which reached SAR 505 million, thanks to Mobily’s deleveraging strategy, coupled with an easing in SAIBOR.
Operational Cash Flow2 increased by 36.9% to reach SAR 3,502 million due to the increase in EBITDA and decrease in CAPEX.
On another hand, CAPEX decreased by 25.1% YoY to reach SAR 2,092 million in 2021 due to the completion and achievement of strategic objectives. As a result, CAPEX/revenue stood at 14.1% in 2021 compared to 19.9% in 2020. Mobily mostly focused its 2021 CAPEX toward the ongoing roll-out of 5G.
