Mobily’s Q4 net profit up 11% to SR 1.88 bn

Updated 19 January 2013
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Mobily’s Q4 net profit up 11% to SR 1.88 bn

Mobily's net profits during the fourth quarter of 2012 were SR 1.88 billion, compared to SR 1.70 billion for the same quarter of the previous year (an increase of 11 percent) and SR 1.51 billion for the previous quarter (an increase of 24 percent), according to an announcement from the company's full year consolidated financial results for the year ending Dec. 31, 2012.
Gross profits during the fourth quarter were SR 3.48 billion, compared to SR 3.09 billion for the same quarter of the previous year (an increase of 13 percent).
Operational profits during the fourth quarter were SR 1.90 billion, compared to SR 1.75 billion for the same quarter of the previous year (an increase of 8 percent). Net profits for the full year were SR 6.02 billion, compared to SR 5.08 billion for the previous year (an increase of 18 percent).
Earnings per share for the full year amounted to SR 8.60, compared to SR 7.26 in 2011.
Gross profits for 2012 were SR 12.03 billion, compared to SR 10.33 billion in 2011 (an increase of 17 percent). Operational profits for 2012 were SR 6.19 billion, compared to SR 5.31 billion in 2011 (an increase of 17 percent).
The increase during the fourth quarter (compared to the same quarter of 2011) is attributable to the rise in data revenues. The number of visitors roaming on the company's network increased by 24 percent, during the Haj season.
The company's revenues increased to SR 23.64 billion, compared to SR 20.05 billion in 2011 (an increase of 18 percent).
Fourth quarter revenues were SR 6.77 billion, compared to SR 5.80 billion in the same period of 2011 (an increase of 17 percent), and compared to SR 6.18 billion for the previous quarter (an increase of 10 percent).
The EBITDA increased to SR 8.59 billion, compared to SR 7.45 billion in 2011, an increase of 15 percent, and with the continuing increase in the sales of smart phones, which carry thin margins the EBITDA margin was 36 percent, compared to 37 percent for 2011 (38 percent for Q4, compared to 40 percent for the corresponding period of the previous year and 36 percent for the previous quarter).
Abdulaziz Saleh Alsaghyir, chairman of the Mobily board of directors, said the company's share increased by 45 percent 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 percent.
The board of directors, at its meeting held on Jan. 17 has recommended cash dividend distribution of SR 885.50 million for the fourth quarter of 2012, equivalent to SR 1.15 per share, representing 11.50 percent of the nominal value of the share, in addition to the interim dividends of SR 2,100 million in the first three quarters of the year.


Jordanian cabinet approves new IMF-guided tax law to boost finances

Updated 21 May 2018
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Jordanian cabinet approves new IMF-guided tax law to boost finances

AMMAN: Jordan’s cabinet on Monday approved major IMF-guided proposals that aim to double the income tax base, as a key part of reforms to boost the finances of a debt-burdened economy hit by regional conflict.
“When only 4 percent of Jordanians pay (personal) income tax, this may not be the right thing,” Finance Minister Omar Malhas said in remarks after the cabinet meeting, adding the goal was to push that to eight percent. The draft legislation was submitted to parliament.
The IMF’s three-year Extended Fund Facility program aims to generate more state revenue to gradually bring down public debt to 77 percent of GDP in 2021, from a record 95 percent.
A few months ago Jordan raised levies on hundreds of food and consumer items by unifying general sales tax (GST) to 16 percent — removing exemptions on many basic goods.
In January subsidies on bread were ended, doubling some prices in a country with rising unemployment and poverty among its eight million people.
The income tax move and the GST reforms will bring an estimated 840 million dinars ($1.2 billion) in extra annual tax revenue that will help reduce chronic budget shortfalls normally covered by foreign aid, officials say.
Corporate income tax on banks, financial institutions and insurance companies will be pushed to 40 percent from 30 percent. Taxes on Jordan’s phosphate and potash mining industry will be raised to 30 percent from 24.
The government argues the reforms will reduce social disparities by progressively taxing high earners while leaving low-paid public sector employees largely untouched.
“This is a fair tax law not an unfair one,” said Malhas, who shrugged off criticism the law is lenient on many businesses connected to politicians whose transactions are not subject to tax scrutiny.
Husam Abu Ali, the head of the Income and Sales Tax Department, said a proposed IMF-recommended Financial Crime Investigations Unit will stiffen penalties for tax evaders. Critics say it will not tackle pervasive corruption in state institutions.
Abu Ali said the government could be losing hundreds of millions of dollars through tax evasion, which is as high as 80 percent in some companies.
The amendments lower the income tax threshold and raise tax rates. Unions said the government was caving in to IMF demands and squeezing more from the same taxpayers.
“It is penalizing a group that has long paid what it owes the state,” the unions syndicate said in a statement.
“It imposes injustice on employees whose salaries have barely coped with price hikes rising madly in recent years.”