Industry Updates

ELEMENT LIST

CURRENT QUARTER

SIMILAR QUARTER FOR PREVIOUS YEAR

%CHANGE

PREVIOUS QUARTER

% CHANGE

Sales/Revenue

3,559

3,331

6.84%

3,600

%1.13-

Total Profit (Loss)

2,062

1,956

%5.40

2,065

%0.16-

Profit (Loss) Operational

334

261

%27.82

296

%12.81

Net Profit (Loss) after Zakat and Tax

185

37.77

%390.24

130

%42.13

Total Comprehensive Income

162

16.21

%897.71

107

%51.45

ELEMENT LIST

CURRENT PERIOD

SIMILAR PERIOD FOR PREVIOUS YEAR

%CHANGE

Sales/Revenue

7,158

6,532

%9.59

Total Profit (Loss)

4,127

3,795

%8.76

Profit (Loss) Operational

630

538

%17.16

Net Profit (Loss) after Zakat and Tax

315

105.02

%200.36

Total Comprehensive Income

269

64

%322.32

Total Share Holders Equity (after deducting minority equity)

14,020

13,833

%1.35

Profit (Loss) per Share

0.41

0.14

-

ELEMENT LIST

EXPLANATION

Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year

Mobily achieved a net profit for the second quarter of 2020, recording net profit reached SAR 185 million compared to a net profit of SAR 37.8 million in Q2 2019. This is mainly due to the following:

Revenues

Mobily continued to grow its revenues for the second quarter of 2020, amounted to SAR 3,559 million versus SAR 3,331 million in Q2 2019, or a YoY growth of 6.8%. This is mainly attributed to the growth in business unit and wholesale revenues, also the growth of FTTH active base.

Gross profit

Q2 2020 gross profit amounted to SAR 2,062 million versus SAR 1,956 million in Q2 2019, a growth of 5.4%. This is mainly attributed to the healthier topline.

EBITDA

Mobily continued in increasing its EBITDA to reach SAR 1,335 million in Q2 2020 versus SAR 1,221 million in Q2 2019, or an increase of 9.3%. The EBITDA increase is attributed to the improvement in the company’s efficiency in managing its operations and the growth of revenues.

EBITDA margin increased to 37.5% for Q2 2020 versus 36.7% for Q2 2019.

Operational profit (EBIT)

Q2 2020 Operational profit amounted to SAR 334 million compared to an operational profit of SAR 261 million in Q2 2019, an increase of 27.8% reflecting the improvement in EBITDA.

Financial charges and Zakat

The financial charges for Q2 2020 amounted to SAR 139 million compared to SAR 217 million in Q2 2019 representing a decrease of 36.2%, reflecting the company’s efforts to reduce the funding costs by refinancing big portion of its debts by the end of last year, and the decrease in the interest rate.

Zakat expenses for Q2 2020 amounted to SAR 17 million compared to Zakat expense of SAR 16 million in Q2 2019.

Reason for increase (decrease) in net profit for current quarter compared to the previous quarter

Mobily achieved an increase in its net profit for the second quarter of 2020, recording net profit reached SAR 185 million compared to net profit of SAR 130 million in Q1 2020. This is mainly due to the following:

Revenues

Mobily revenues in Q2 2020 amounted to SAR 3,559 million versus SAR 3,600 million in Q1 2020, representing a decrease by 1.1%, The slight decrease is attributed to the effect of the precautionary measures taken to prevent the Corona pandemic on some of the company’s services.

Gross profit

Q2 2020 Gross profit amounted to SAR 2,062 million versus SAR 2,065 million in Q1 2020, a slight decrease attributed to the decrease in the topline.

EBITDA

Q2 2020 EBITDA amounted to SAR 1,335 million versus SAR 1,285 million in Q1 2020, representing an increase of 3.9% reflecting the improvement in the company’s efficiency in managing its operations and the decrease in the general and administrative expenses.

EBITDA margin increased to 37.5% in Q2 2020 versus 35.7% in Q1 2020.

Operational profit (EBIT)

Q2 2020 EBIT amounted to SAR 334 million compared to an EBIT of SAR 296 million in Q1 2020, an increase of 12.8% reflecting the improvement in EBITDA.

Financial charges and Zakat

The financial charges for Q2 2020 decreased by 14.2% to reach SAR 139 million compared to SAR 162 million in Q1 2020, as a result of the decrease in the interest rate.

Zakat expenses for Q2 2020 amounted to SAR 17 million versus Zakat expense of SAR 14 million in Q1 2020.

Reason for increase (decrease) in net profit for current period compared to the similar period of the previous year

Mobily achieved a net profit for the first half of 2020, Where H1 2020 net profit amounted to SAR 315 million compared to net profit of SAR 105 million in H1 2019. This is mainly due to the following:

Revenues

Mobily succeeded in growing its revenues where H1 2020 revenues increased by 9.6% to reach SAR 7,158 million versus SAR 6,532 million in H1 2019. This is mainly attributed to the growth in business unit revenues, the improvement in the consumer revenues, the growth of wholesale revenues and the growth of FTTH active base.

Gross profit

H1 2020 gross profit amounted to SAR 4,127 million versus SAR 3,795 million in H1 2019, a growth of 8.8%. This is mainly attributed to the Increase in the topline.

EBITDA

Mobily succeeded in increasing its EBITDA to reach SAR 2,620 million in H1 2020 versus SAR 2,494 million in H1 2019, or an increase of 5.1%. The EBITDA increase is attributed to the improvement in revenues.

EBITDA margin decreased to 36.6% for H1 2020 versus 38.2% for H1 2019.

Operational profit (EBIT)

H1 2020 Operational profit amounted to SAR 630 million compared to an operational profit of SAR 538 million in H1 2019, an increase of 17.2%, reflecting the improvement in EBITDA.

Financial charges and Zakat

The financial charges for H1 2020 amounted to SAR 300 million compared to SAR 429 million in H1 2019, representing a decrease of 30%, reflecting the company’s efforts to reduce the funding costs by refinancing big portion of its debts by the end of last year, and the decrease in the interest rate.

Zakat expenses for the current period amounted to SAR 31 million compared to Zakat expenses of SAR 24 million in H1 2019.

Basis of the External Auditor's Opinion

Unmodified opinion

Reclassification of Comparison Items

Certain figures for the comparative period have been reclassified to conform to the current period presentation.

Additional Information

Net Debt

Mobily net debt amounted to SAR 10,600 million at the end of Q2 2020 versus SAR 10,903 million at the end of Q1 2020, a decrease of 2.8%.

CAPEX:

Capex in H1 2020 amounted to SAR 1,017 million versus SAR 1,126 million in H1 2019. Capex continuity reflects the company’s commitment to invest in the infrastructure and improve the quality of service.

Operational Cash Flow:

Mobily improved its H1 2020 Operational Cash Flow (EBITDA-CAPEX) to reach SAR 1,604 million versus SAR 1,368 million in H1 2019; representing an increase of 17.3%.

The financial statements for the Six Months ended 30th June 2020 will be available through Mobily Investor Relations Website, and Mobily IR App.