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.


Golden Gate Developers unveils newest project

Golden Gate will be developed over 140,000 square meters providing views of the waterfront and iconic Bahraini landmarks.
Updated 13 November 2018
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Golden Gate Developers unveils newest project

Golden Gate Developers launched their residential development project Golden Gate on Saturday at the Four Seasons Hotel in Bahrain Bay. The project is a result of a joint venture between Bahraini-based company Kooheji Golden Gate and Indian real estate companies Ajmera Realty and Mayfair Housing.

The launch event was open to the public, who had an exclusive first look at the property in its entirety. Guests were also treated to a 360-degree virtual reality tour, where they were able to walk through the property and have a virtual experience of living in their homes. 

Chairman of Kooheji Golden Gate Ishaq Al-Kooheji said: “The innovation and creativity that we have shown will only propel Bahrain into the spotlight, making the Kingdom an exemplar of excellence in the real estate industry.”

Manoj Ajmera, managing director of Ajmera Realty, said: “We are thrilled with the way the launch has taken off and are expecting only bigger and greater successes for the Golden Gate project and our growing relationship with the Kingdom of Bahrain.”

Real estate firms Ajmera Realty and Mayfair Housing have delivered a number of commercial and residential spaces in India.

This partnership aims at fostering a long-lasting relationship between these two nations and attracting more foreign investment into the country. 

The property will be situated in the heart of Bahrain Bay, one of the most desirable locations for residential and commercial developments in the country where amenities and transport links are easily accessible for residents to enjoy. Golden Gate will be developed over 140,000 square meters providing views of the waterfront and iconic Bahraini landmarks.

The project will feature a “modernistic interpretation of traditional architecture” and aims to become the tallest residential towers in the country, consisting of two towers with 45 and 53 stories and a total of 746 luxurious apartments, starting at 45,000 Bahraini Dinar ($119,380). The development fuses both Bahraini and Indian cultures, paying homage to their rich cultural backgrounds. 

Nayan Shah, chairman of Mayfair Housing, said: “Bahrain was a great choice for our first international venture as Golden Gate Developers, and Bahrain Bay was the best place to begin our journey. We are impressed with the country’s business-friendly mentality and strong work ethic, which enabled us to create possibilities such as the Golden Gate project, which we hope to make a prestigious landmark.”