Mobily decreased its quarterly losses in Q1 2018 by 49% to SAR 93 Million compared to SAR 182 million in Q4 2017.
This was mainly due to the growth of revenues driven by better mix of products mainly from data, the increase of efficiency in managing the operational expenses, the impact of implementing IFRS 9 and 15 and the reversal of certain provisions that are no longer required.
Revenues improved for the second consecutive quarter reaching in Q1 2018 SAR 2,833 million compared to SAR 2,827 million in Q4 2017,a slight increase of 0.2%, despite the following:
(1) The impact on sales in the beginning of the year due to the implementation of the Value Added Tax.
(2) The reduction in interconnection rates by 45%.
(3) The seasonality of handset sales, and its increase in Q4 2017.
(4) The seasonality decrease related to the number of days in Q1.
Without the decrease of the interconnection rates, the revenues would have grown by 2%.
Gross profit increased in Q1 2018 by 6.6% to SAR 1,663 million compared to SAR 1,560 million in Q4 2017. This increase is mainly due to the reduction in interconnection rates during Q1 2018 compared to the ones of Q4 2017 and the reduction in equipment costs in Q1 2018 compared to Q4 2017.
EBITDA amounted in Q1 2018 SAR 1,036 million compared to SAR 911 million in Q4 2017. EBITDA margin improved to 37% compared to 32% in Q4 2017. This was mainly due to the decrease of interconnection rates, the continuing efforts to increase the company’s operational efficiency, the impact of implementing IFRS 9 and 15 and the reversal of certain provisions that are no longer required.
Mobily managed to decrease its quarterly losses in Q1 2018 by 43% to SAR 93 Million compared to SAR 163 Million in Q1 2017. This was mainly due to the improvement in revenues driven by a better mix of products mainly from data, the increase of efficiency in managing the operational expenses, the impact of implementing IFRS 9 and 15 and the reversal of certain provisions that are no longer required.
The Saudi operator managed to grow its revenues for the second consecutive quarter. Q1 2018 revenues slightly decreased by 1% from SAR 33 million to SAR 2,833 million compared to SAR 2,865 million in Q1 2017. Mobily achieved a stable level in revenues despite the general economic and regulatory changes, including:
(1) The impact on sales in the beginning of the year due to the implementation of Value Added Tax.
(2) The reduction in interconnection rates by 45%.
Without the decrease of the interconnection rates, the revenues would have grown by 1% year over year.
Gross profit stabilized at SAR 1,663 million in Q1 2018 compared to SAR 1,665 million in Q1 2017 with a slight decrease by 0.12%, despite the slight decrease in revenues.
The company managed to increase EBITDA margin in Q1 2018 to 37% compared to 33% in Q1 2017. Q1 2018 EBITDA amounted to SAR 1,036 million compared to SAR 932 million in Q1 2017. This was mainly due to the decrease of interconnection rates, the continuing efforts to improve the operational efficiency, the impact of implementing IFRS 9 and 15 and the reversal of certain provisions that are no longer required.
