Etihad Etisalat Co. — Earnings Release 2012

Jan 19, 2013

Mobily announces its full year consolidated financial results for the year ending December 31, 2012 (Twelve months) (CONTINUED )

7020 · 19/01/2013 09:35:04 · Announcement #28331 · View on Saudi Exchange

Mobily announces its full year consolidated financial results for the year ending December 31, 2012 (Twelve months) (CONTINUED )

Business sector revenues also continued to increase, along with growth in the number of postpaid subscribers and the sales of smart phones. Business sector revenues increased 71% year-on-year, while revenues from postpaid subscribers accounted for 33% of total revenues.

The EBITDA increased to SR 8,591 million, compared to SR 7,454 million in 2011, an increase of 15%, and with the continuing increase in the sales of smart phones, which carry thin margins, the EBITDA margin was 36%, compared to 37% for 2011 (38% for Q4, compared to 40% for the corresponding period of the previous year and 36% for the previous quarter).

Engineer Abdulaziz Saleh Alsaghyir, Chairman of the Mobily Board of Directors, said that the companys share increased by 45% during 2012 among the highest gains in the telecommunications sector worldwide. He added that if the cash dividend distributed by the company is taken into account, shareholders returns for 2012 will reach more than 54%.

Alsaghyir stressed that the telecommunications industry in the Kingdom is still attractive, and that the company is planning to spend on the infrastructure more than SR 22 billion in the next five years, taking into consideration the return on the invested capital, to maintain its leadership in the mobile broadband sector, expand its fiber optic network across the Kingdom so that it reaches 500,000 residential units by the end of 2013.

He confirmed that this strategy aims to maintain the companys competitiveness and raise network capacities to cater for the increasing needs of internet users and the business sector, and will contribute to positive performance in the coming years.

Alsaghyir added that the commitment to capital expenditure will keep the companys infrastructure up-to-date so as to achieve mid to long-term growth terms, and that the companys strong financial position and executive capabilities along with lower net debt/EBITDA will allow optimum utilization of financial resources. The entry of a new mobile virtual network operator (MVNO) would not necessarily lead to price competition, and Mobily expected an increase in cash dividend distribution to shareholders with the continuing growth in profits.

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