Mobily cuts net losses by 61.5% for 9 months

Updated 23 October 2018
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Mobily cuts net losses by 61.5% for 9 months

Mobily reduced its net losses for the first nine months of 2018 by 61.5 percent. The telecom company cut its net losses in this period to SR202.9 million ($54 million) from SR527.2 million in the same period last year.

Revenues increased by 2.1 percent to SR8,703 million compared to SR8,524 million in the same period last year. 

This has been achieved despite the market, regulatory and economic challenges, including:

(1) The reduction of mobile termination rates.

(2) The continuous impact of the VoIP application on international calls revenue.

Taking out the impact of the decrease of mobile interconnection rates, revenues would have grown by 2.7 percent.

The gross profit increased by 4.5 percent to SR5,196 million for the first nine months of 2018 versus SR4,970 million in the same period of 2017. This is mainly due to the reduction of cost of sales as a result of mobile termination rates.

The company successfully improved its earnings before interest, tax, depreciation and amortization (EBITDA) to reach SR3,190 million compared to SR2,734 million for 2017, resulting in an increase of 17 percent. This is due to the company’s efficiency in managing its expenses, the reversal of certain provisions, and the implementation of IFRS 15 and 9. The EBITDA margin for the nine months reached 36.6 percent versus 32.1 percent for 2017.

Mobily’s Q3 2018 net losses reached SR30.9 million compared to SR174.4 million in Q3 2017, a decrease of 82 percent.

Mobily’s Q3 2018 revenues amounted to SR2,976 million versus SR2,805.7 million for Q3 2017, reflecting an increase of 6.1 percent.

This is mainly due to the improvement in consumer revenues, growth in FTTH sales and growth in business unit revenues driven by sales to government sectors. 

“This was achieved despite the market, regulatory and economic challenges including the reduction of mobile termination rates. By taking out the impact of the decrease of the mobile termination rates, quarterly revenues would have grown by 8 percent,” the company said.

Mobily succeeded in improving its EBITDA to reach SR1,088 million in Q3 2018 versus SR904 million in Q3 2017, an increase of 20 percent. This reflects the company’s efficiency in managing its operational expenses and the reclassification of SR84 million provision (built in Q1) from pre-EBITDA to post-EBITDA. 

This reclassification did not affect the calculated net losses.

EBITDA margin reached 36.6 percent for Q3 2018 versus 32.2 percent for the same quarter last year.


Marriott hotel, apartments open in Riyadh’s DQ

Updated 21 March 2019
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Marriott hotel, apartments open in Riyadh’s DQ

Marriott International and Dur Hospitality this week celebrated the opening of the Riyadh Marriott Hotel Diplomatic Quarter and Marriott Executive Apartments Riyadh, Diplomatic Quarter. The complex is strategically located in the heart of one of the most sought-after areas in the city with easy access to key embassies and major corporate headquarters, and a 30-minute drive from King Khalid International Airport. 

“We are delighted to enhance our footprint in Saudi Arabia with the opening of two strategically important hotels that not only complement each other but also deliver very distinct brand experiences. Saudi Arabia continues to be one of our key markets and we are delighted to further strengthen our partnership with Dur Hospitality,” said Alex Kyriakidis, president and managing director, Middle East and Africa, Marriott International.

The hotel is inspired by Wadi Hanifa, a beautiful desert oasis running through Riyadh. The low-rise hotel resembles the smooth, dry canyon walls that make for a dramatic arrival experience. Once you step inside, the waterways guide the way into the building, ushering guests through the arrival court into the palm-dotted oasis in the hotel’s courtyard. Planted cacti, flowering vines, plentiful blooming desert flora and native date palm trees create a calming ambiance, providing shade from the desert sun. 

The complex is the first five-star full service hotel in the Diplomatic Quarter and features 80 spacious modern rooms, and 140 fully equipped apartments. The deluxe rooms feature modern décor and ample work space, allowing guests to stay connected with in-room technology, including high-speed WiFi and bedside USB outlets. Guests staying in one of the six Premium Suites or the Presidential Suite can enrich their experience in the M Club Lounge offering an international buffet, hors d’oeuvre and local specialties 24 hours a day. 

The Riyadh Marriott Hotel Diplomatic Quarter houses three dining venues, Goji Kitchen — an all-day dining destination, a la carte restaurant Mesquite and Agave Café located in the lobby. The hotel offers multiple recreational areas surrounded by lush greenery. 

Muin Serhan, general manager of Marriott Hotels in Riyadh, said: “The opening of Marriott Riyadh and Marriott Executive Apartments Riyadh Diplomatic Quarter is considered an important milestone in our developing journey in the hospitality field; we are keen to provide a very special experience to our valuable guests whatever they are traveling for — business or leisure.”

He added: “And we are very proud to be part of the new Marriott travel program ‘Marriott Bonvoy,’ built on the belief that travel enriches its members and the world around them. Launching in February 2019, Marriott Bonvoy replaces Marriott Rewards, The Ritz-Carlton Rewards and Starwood Preferred Guest (SPG).”