Mobily records 5.6% YoY revenue growth in FY21 reporting
Etihad Etisalat Company (Mobily) has published its financial results for FY 2021, recording strong growth for the period.
The company's revenue increased by 5.6% year-on-year (YoY) totalling SAR 14,834 million ($3.9 billion), driven by strong performance across its business and consumer segments.
“All sectors in Mobily showed significant performance in 2021, and as a result, Mobily was able to achieve significant operational successes and meet ambitious targets in line with our strategy of growing core sectors while optimizing efficient delivery of services and products," said Eng. Salman Bin Abdulaziz Al Badran (pictured), chief executive officer at Mobily.
"Highlights for the year included the digital enhancements, as well as a substantial increase in our FTTH customer segment. Our Business Unit achieved excellent results in servicing a growing range of company accounts, and we were delighted to facilitate a Kingdom-wide health information system. Our notable growth in net income demonstrates the strength and resilience of our business model, and we look forward to further expand our business in the coming years.”
Net Income increased by 36.8% YoY reaching SAR 1,072 million ($285 million), largely due to a 10% YoY decrease in finance charges totalled roughly SAR 505 million ($134 million), thanks to Mobily’s deleveraging strategy, coupled with favourable Saudi Arabian Interbank Offered Rate (SAIBOR).
Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) reached SAR 5,594 million ($368 million, growth of approximately 4.6% YoY. The EBITDA margin for this period reached 37.7% compared to 38.1% last year.
Capital expenditure (CAPEX) fell 25.1% YoY to reach SAR 2,092 million ($557 million) for the year, meaning that CAPEX/revenue stood at 14.1% in 2021 compared to 19.9% in 2020.
Operational Cash Flow increased by 36.9% to reach SAR 3,502 million ($933 million) due to the aforementioned increase in EBITDA and decrease in CAPEX.
“Sales in all of the company segments went from strength to strength as the year progressed, enabling the Company to increase its year-on-year revenues in 2021 after successfully managing pandemic-related headwinds in the early part of the year," added Khalid Abanami, chief finance officer at Mobily.
"Thanks to our continued focus on effective cost management and streamlining efficiencies in areas including customer care, the launch of several enterprise projects, and expansion of 5G services, we were able to improve our performance and solidify our position as a leading telecommunications provider in the Kingdom. Furthermore, we are delighted that our robust financial position supported the recommendation of a higher dividend payout for our shareholders.”