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.


Al-Habtoor receives members of Dubai Police’s Esaad

Updated 15 January 2019
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Al-Habtoor receives members of Dubai Police’s Esaad

Khalaf Al-Habtoor, founding chairman of the Al-Habtoor Group, received a delegation from the Dubai Police Esaad Program Committee at the Al-Habtoor Group head office on Monday. Mona Al-Ameri, head of the happiness committee, Dubai Police, thanked Al-Habtoor for his continuous support for the Dubai Police employee happiness initiative and presented the Al-Habtoor Group chairman, and Vice Chairman and CEO Mohammed Al-Habtoor with their personalized Esaad cards.

Dubai Police representatives included Masoud Ibrahim Alhammad, Khalid Alsuwaidi, Ahmed bin Ghafan, Ibrahim Alblooshi, Salah Amin, Mohammed Shoaib Albalooshi, Gaafar Salim, Sayed Ibrahim, Abdullah Haidarah, Hasan Saleh, Thureya Balhoul, Waheeda Abbas, Waheeda Abdulqadir, Mariyam Saeed Abdulhakeem, Khalil Ibrahim Ali and Mahmood Ibrahim. Also present was Abdul Salam Marzooqi, director of UAE affairs and community relations, Al-Habtoor Group.

Khalaf Al-Habtoor said: “I am happy to collaborate with the Dubai Police in their Esaad program and be able to show our men and women in the Dubai Police corps our appreciation for their commitment to our safety.

“Dubai’s appeal as an investment haven is in its stability, and that is largely due to the safety and security the Dubai Police provides. I commend them for their continued service to our community.”

Al-Habtoor called for the private sector to work closely with the public sector and commended the Esaad program committee for their efforts to reward employees for their performance, commitment and dedication to the job. 

Al-Ameri, head of the happiness committee, thanked Al-Habtoor for the warm welcome and gave a detailed brief about the Esaad card and its uses across various sectors including: Education, tourism, hospitality, aviation, entertainment and leisure, real estate and retail.

She said: “The Esaad card is trusted by the civil servants in Dubai and the UAE. The number of Esaad cardholders is currently at 108,498 employees from 128 governmental and semi-governmental departments.”

Al-Ameri commended the Al-Habtoor Group for its continuous support for community activities, noting that the Esaad program is an innovative program designed to achieve happiness in the community.

Al-Habtoor Group joined the Esaad program in October 2017 offering Dubai Police staff extended benefits and discounts at Habtoor Hospitality and Real Estate properties, including hotels, restaurant, leisure and entertainment facilities in the UAE and abroad. Dubai Police staff are offered a 50 percent discount at Al-Habtoor Group hotels in Dubai and internationally, as well as a 20 percent reduction at the group’s leisure and entertainment facilities. It also includes special rates on the new apartments at Al-Habtoor City Residence Collection.