Etihad Etisalat Co. — Earnings Release 2020

Feb 21, 2021

Etihad Etisalat Co. announces the annual consolidated financial results for the period ending on 31-12-2020

7020 · 21/02/2021 08:07:13 · Announcement #61969 · View on Saudi Exchange

Etihad Etisalat Co. announces the annual consolidated financial results for the period ending on 31-12-2020

Element List	Current Year	Previous Year	%Change
Sales/Revenue	14,046	13,450	4.431
Gross Profit (Loss)	8,152	7,800	4.512
Operational Profit (Loss)	1,367	967	41.365
Net Profit (Loss) after Zakat and Tax	783	31	2,425.806
Total Comprehensive Income	694	-18	-
Total Share Holders Equity (after Deducting Minority Equity)	14,445	13,751	5.046
Profit (Loss) per Share	1.02	0.04
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current year compared to the last year is	Mobily succeeded in achieving a net profit for the year ended 31 December 2020, the company recorded in the fiscal year 2020 a net profit reached SAR 783 million compared to a net profit of SAR 31 million in 2019. The achievement of recording net profit for 2020 is mainly due to the following:

Revenues

Mobily succeeded in growing its revenues in 2020, amounted to SAR 14,046 million versus SAR 13,450 million in 2019, a growth of 4.4%. This is mainly attributed to the growth of data revenues, the growth of Business Unit and wholesale revenues, in addition to the growth and improvement of subscribers base.

Gross profit

Gross profit for 2020 amounted to SAR 8,152 million versus SAR 7,800 million in 2019, a growth of 4.5%. This is mainly attributed to the increase in revenues.

EBITDA

Mobily continued achieved the highest EBITDA in the last 7 years reaching SAR 5,350 million in 2020 compared to SAR 4,947 million in 2019, or an increase of 8.2%. The EBITDA increase is attributed to the company’s efficiency in managing its operations and the growth of revenues.

EBITDA margin increased to 38.1% for 2020 compared to 36.8% for 2019.

Operational profit (EBIT)

2020 Operational profit amounted to SAR 1,367 million compared to an operational profit of SAR 967 million in 2019, an increase of 41.3%; reflecting the improvement in EBITDA.

Financial charges and Zakat

Financial charges for 2020 have declined to reach SAR 561 million compared to SAR 929 million in 2019 representing a decrease of 39.6% reflecting the company’s efforts to reduce the funding costs by refinancing big portion of its debts at the end of 2019 and the decrease in the interest rate.

Zakat expenses for 2020 amounted to SAR 43 million compared to Zakat expense of SAR 49 million in 2019. Statement of the type of external auditor's report Unmodified opinion Reclassification of Comparison Items Certain comparative figures have been reclassified to conform to the current year’s presentation Additional Information Net Debt

Mobily net debt amounted to SAR 10,602 million at the end of 2020 versus SAR 10,626 million at the end of 2019.

CAPEX:

Capex in 2020 amounted to SAR 2,792 million compared to SAR 2,760 million in 2019.

Operational Cash Flow:

Mobily substantially improved its 2020 operational cash flow (EBITDA-CAPEX) to reach SAR 2,558 million compared to SAR 2,187 million in 2019, representing an increase of 17%.

The financial statements for the year ended 31st December 2020 will be available through Mobily Investor Relations Website, and Mobily IR App, after being published on Tadawul website.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.