Mobily cuts net losses by 83% in FY 2018

18/02/2019 Argaam Exclusive

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Share Price

51.00
(2.10) (3.95 %)

Etihad Etisalat Co. (ETIHAD ETISALAT)

Etihad Etisalat Co. (Mobily) narrowed net losses after zakat and tax by 82.6 percent year-on-year (YoY) to SAR 123 million for fiscal year 2018, driven by higher revenue and lower call rates. The telco also cited an increase in gross and operating profit.



Financials (M)

Item 2017 2018 Change‬
Revenues 11,351.30 11,864.91 4.5 %
Gross Income 6,530.31 6,582.20 0.8 %
Operating Income 219.98 214.05 (2.7 %)
Net Income (708.94) (122.67) 82.7 %
Average Shares 770.00 770.00 -
EPS (Riyals) (0.92) (0.16) 82.7 %

For the first time since Q2 2016, the telecom operator turned to net profit after zakat and tax of SAR 80 million in Q4 2018, compared to net losses of SAR 182 million a year earlier, backed by higher revenue and improved fiber-optic, data and enterprise sales.

 

In Q3 2018, Mobily incurred net losses of SAR 31 million.



Current Quarter Comparison (M)

Compared With The
Item Q4 2017 Q4 2018 Change‬
Revenues 2,826.66 3,161.62 11.9 %
Gross Income 1,560.17 1,386.14 (11.2 %)
Operating Income 6.35 (279.57) (4503.4 %)
Net Income (181.72) 80.29 144.2 %
Average Shares 770.00 770.00 -
EPS (Riyals) (0.24) 0.10 144.2 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2009 2,810.46 21.8 % 1,616.66 32.1 % 480.16 47.3 % 0.62
Q2 2009 3,199.37 25.8 % 1,833.25 29.7 % 674.93 50.5 % 0.88
Q3 2009 3,511.17 23.9 % 1,982.11 26.5 % 806.85 49.6 % 1.05
Q4 2009 3,537.27 13.8 % 2,114.53 16.3 % 1,051.93 35.2 % 1.37
Q1 2010 3,581.38 27.4 % 1,827.12 13.0 % 714.06 48.7 % 0.93
Q2 2010 3,972.33 24.2 % 2,073.83 13.1 % 901.02 33.5 % 1.17
Q3 2010 3,988.50 13.6 % 2,309.86 16.5 % 1,137.55 41.0 % 1.48
Q4 2010 4,470.94 26.4 % 2,572.61 21.7 % 1,458.84 38.7 % 1.89
Q1 2011 4,484.30 25.2 % 2,289.13 25.3 % 998.23 39.8 % 1.30
Q2 2011 5,126.64 29.1 % 2,477.75 19.5 % 1,164.07 29.2 % 1.51
Q3 2011 4,639.69 16.3 % 2,472.28 7.0 % 1,223.77 7.6 % 1.59
Q4 2011 5,801.62 29.8 % 3,086.91 20.0 % 1,697.39 16.4 % 2.20
Q1 2012 5,008.63 11.7 % 2,613.09 14.2 % 1,207.45 21.0 % 1.57
Q2 2012 5,678.49 10.8 % 2,955.86 19.3 % 1,421.26 22.1 % 1.85
Q3 2012 6,183.15 33.3 % 2,986.06 20.8 % 1,511.41 23.5 % 1.96
Q4 2012 6,715.03 15.7 % 3,421.97 10.9 % 1,877.54 10.6 % 2.44
Q1 2013 5,593.04 11.7 % 2,693.80 3.1 % 1,339.64 10.9 % 1.74
Q2 2013 5,960.05 5.0 % 2,975.14 0.7 % 1,611.04 13.4 % 2.09
Q3 2013 4,883.46 (21.0 %) 3,292.03 10.2 % 1,631.94 8.0 % 2.12
Q4 2013 4,087.12 (39.1 %) 2,589.22 (24.3 %) 447.60 (76.2 %) 0.58
Q1 2014 3,853.06 (31.1 %) 2,163.70 (19.7 %) 310.69 (76.8 %) 0.40
Q2 2014 3,568.53 (40.1 %) 1,901.79 (36.1 %) 92.50 (94.3 %) 0.12
Q3 2014 3,859.86 (21.0 %) 2,182.85 (33.7 %) 129.46 (92.1 %) 0.17
Q4 2014 2,722.09 (33.4 %) 530.71 (79.5 %) (2108.45) (571.1 %) (2.74)
Q1 2015 3,680.13 (4.5 %) 1,917.62 (11.4 %) (44.52) (114.3 %) (0.06)
Q2 2015 3,556.26 (0.3 %) 1,881.45 (1.1 %) (900.91) (1074.0 %) (1.17)
Q3 2015 3,700.08 (4.1 %) 2,025.03 (7.2 %) (158.29) (222.3 %) (0.21)
Q4 2015 3,487.65 28.1 % 2,133.98 302.1 % 10.59 100.5 % 0.01
Q1 2016 3,440.28 (6.5 %) 1,924.97 0.4 % 19.74 144.3 % 0.03
Q2 2016 3,288.88 (7.5 %) 2,087.68 11.0 % 3.18 100.4 % 0.00
Q3 2016 2,931.84 (20.8 %) 1,741.18 (14.0 %) (166.33) (5.1 %) (0.22)
Q4 2016 2,908.40 (16.6 %) 1,671.45 (21.7 %) (70.22) (763.1 %) (0.09)
Q1 2017 2,865.06 (16.7 %) 1,664.83 (13.5 %) (163.10) (926.3 %) (0.21)
Q2 2017 2,853.83 (13.2 %) 1,633.29 (21.8 %) (189.66) (6069.6 %) (0.25)
Q3 2017 2,805.75 (4.3 %) 1,672.02 (4.0 %) (174.46) (4.9 %) (0.23)
Q4 2017 2,826.66 (2.8 %) 1,560.17 (6.7 %) (181.72) (158.8 %) (0.24)
Q1 2018 2,832.51 (1.1 %) 1,662.77 (0.1 %) (93.41) 42.7 % (0.12)
Q2 2018 2,894.72 1.4 % 1,774.90 8.7 % (78.63) 58.5 % (0.10)
Q3 2018 2,976.07 6.1 % 1,758.40 5.2 % (30.92) 82.3 % (0.04)
Q4 2018 3,161.62 11.9 % 1,386.14 (11.2 %) 80.29 144.2 % 0.10
2018 11,864.91 4.5 % 6,582.20 0.8 % (122.67) 82.7 % (0.16)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2009 56.78 % 35.20 % 19.88 %
Q2 2009 57.18 % 35.61 % 20.68 %
Q3 2009 57.40 % 36.11 % 21.69 %
Q4 2009 57.79 % 37.04 % 23.08 %
Q1 2010 56.09 % 36.94 % 23.48 %
Q2 2010 54.77 % 36.75 % 23.79 %
Q3 2010 55.21 % 38.04 % 25.23 %
Q4 2010 54.85 % 38.50 % 26.30 %
Q1 2011 54.65 % 38.01 % 26.58 %
Q2 2011 53.40 % 38.37 % 26.33 %
Q3 2011 52.41 % 37.91 % 25.88 %
Q4 2011 51.50 % 37.17 % 25.35 %
Q1 2012 51.76 % 38.00 % 25.72 %
Q2 2012 52.67 % 37.71 % 26.27 %
Q3 2012 51.35 % 36.85 % 25.75 %
Q4 2012 50.78 % 36.18 % 25.51 %
Q1 2013 49.89 % 35.84 % 25.44 %
Q2 2013 49.39 % 36.50 % 25.93 %
Q3 2013 53.49 % 39.23 % 27.90 %
Q4 2013 56.28 % 38.02 % 24.51 %
Q1 2014 58.67 % 37.38 % 21.30 %
Q2 2014 60.68 % 35.19 % 15.15 %
Q3 2014 57.50 % 28.75 % 6.38 %
Q4 2014 48.41 % 24.77 % (2.08 %)
Q1 2015 47.24 % 23.57 % (4.54 %)
Q2 2015 47.13 % 22.22 % (6.07 %)
Q3 2015 46.53 % 21.11 % (8.25 %)
Q4 2015 55.17 % 26.13 % (1.84 %)
Q1 2016 56.16 % 27.77 % (1.54 %)
Q2 2016 58.72 % 30.28 % (0.70 %)
Q3 2016 59.99 % 31.97 % (1.68 %)
Q4 2016 59.07 % 31.96 % (2.62 %)
Q1 2017 59.74 % 32.37 % (3.92 %)
Q2 2017 58.06 % 30.55 % (5.74 %)
Q3 2017 58.09 % 33.90 % (4.86 %)
Q4 2017 57.53 % 33.88 % (5.88 %)
Q1 2018 57.68 % 34.38 % (5.65 %)
Q2 2018 58.72 % 35.42 % (4.65 %)
Q3 2018 58.60 % 36.33 % (2.61 %)
Q4 2018 55.48 % 33.91 % (4.46 %)
2018 55.48 % 33.91 % (4.46 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2009 770.00 2.92 2.92 12.61
Q2 2009 770.00 3.21 3.21 13.49
Q3 2009 770.00 3.56 3.56 14.53
Q4 2009 770.00 3.91 3.91 15.90
Q1 2010 770.00 4.22 4.22 15.69
Q2 2010 770.00 4.51 4.51 16.86
Q3 2010 770.00 4.94 4.94 18.34
Q4 2010 770.00 5.47 5.47 20.23
Q1 2011 770.00 5.84 5.84 19.71
Q2 2011 770.00 6.18 6.18 21.22
Q3 2011 770.00 6.29 6.29 21.68
Q4 2011 770.00 6.60 6.60 23.88
Q1 2012 770.00 6.87 6.87 23.63
Q2 2012 770.00 7.21 7.21 24.57
Q3 2012 770.00 7.58 7.58 25.62
Q4 2012 770.00 7.82 7.82 27.15
Q1 2013 770.00 7.99 7.99 27.74
Q2 2013 770.00 8.23 8.23 28.68
Q3 2013 770.00 8.39 8.39 29.16
Q4 2013 770.00 6.53 6.53 27.42
Q1 2014 770.00 5.20 5.20 26.58
Q2 2014 770.00 3.22 3.22 25.45
Q3 2014 770.00 1.27 1.27 24.36
Q4 2014 770.00 (2.05) (0.38) 21.63
Q1 2015 770.00 (2.51) (0.82) 21.57
Q2 2015 770.00 (3.80) (1.09) 20.40
Q3 2015 770.00 (4.17) (1.46) 20.19
Q4 2015 770.00 (1.42) (0.34) 20.21
Q1 2016 770.00 (1.34) (0.28) 19.73
Q2 2016 770.00 (0.16) (0.13) 19.73
Q3 2016 770.00 (0.17) (0.29) 19.52
Q4 2016 770.00 (0.28) (0.43) 19.42
Q1 2017 770.00 (0.51) (0.61) 19.22
Q2 2017 770.00 (0.77) (0.86) 18.97
Q3 2017 770.00 (0.78) (0.72) 18.75
Q4 2017 770.00 (0.92) (0.87) 18.51
Q1 2018 770.00 (0.83) (0.83) 18.11
Q2 2018 770.00 (0.69) (0.69) 17.98
Q3 2018 770.00 (0.50) (0.39) 17.93
Q4 2018 770.00 (0.16) (0.69) 18.01

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2009 10.75 10.75 2.49
Q2 2009 9.94 9.94 2.37
Q3 2009 10.63 10.63 2.60
Q4 2009 10.08 10.08 2.48
Q1 2010 10.83 10.83 2.91
Q2 2010 9.65 9.65 2.58
Q3 2010 9.80 9.80 2.64
Q4 2010 9.18 9.18 2.48
Q1 2011 8.02 8.02 2.38
Q2 2011 7.72 7.72 2.25
Q3 2011 7.66 7.66 2.22
Q4 2011 7.23 7.23 2.00
Q1 2012 8.66 8.66 2.52
Q2 2012 7.92 7.92 2.32
Q3 2012 8.12 8.12 2.40
Q4 2012 8.84 8.84 2.54
Q1 2013 10.24 10.24 2.95
Q2 2013 9.84 9.84 2.82
Q3 2013 10.10 10.10 2.91
Q4 2013 13.09 13.09 3.12
Q1 2014 17.85 17.85 3.49
Q2 2014 25.37 25.37 3.21
Q3 2014 More than 50 More than 50 3.70
Q4 2014 NEG NEG 2.03
Q1 2015 NEG NEG 1.77
Q2 2015 NEG NEG 1.66
Q3 2015 NEG NEG 1.38
Q4 2015 NEG NEG 1.40
Q1 2016 NEG NEG 1.49
Q2 2016 NEG NEG 1.39
Q3 2016 NEG NEG 0.96
Q4 2016 NEG NEG 1.24
Q1 2017 NEG NEG 1.17
Q2 2017 NEG NEG 1.08
Q3 2017 NEG NEG 0.93
Q4 2017 NEG NEG 0.80
Q1 2018 NEG NEG 0.84
Q2 2018 NEG NEG 1.09
Q3 2018 NEG NEG 1.07
Q4 2018 NEG NEG 0.92

Business Segments (Million)

Compared With The
Period Consumer revenues Business revenues Wholesale revenues Outsourcing revenues
Q1 2016 2,905.06 326.39 193.99 14.83
Q2 2016 2,692.57 401.74 177.26 17.32
Q3 2016 2,420.53 327.20 168.43 15.67
Q4 2016 2,431.57 302.17 156.88 17.78
Q1 2017 2,393.89 305.26 147.21 18.70
Q2 2017 2,352.58 306.60 170.72 23.93
Q3 2017 2,301.05 291.18 190.42 23.10
Q4 2017 2,412.37 221.58 168.63 24.08
Q1 2018 2,327.43 311.53 167.46 26.10
Q2 2018 2,349.18 322.29 194.02 29.23
Q3 2018 2,360.77 340.77 240.49 34.04
Q4 2018 2,546.71 363.69 214.29 36.90

Analysts Estimates (Million)

Item Q4 2018 (e) Q4 2018 (a) Change‬
Average (107.20) 80.29 174.89 %

Estimates vs Actual (Million)

Item Q4 2018 (e) Q4 2018 (a) Change
Sico (156.00) 80.29 151.5 %
Al Rajhi Capital (107.00) 80.29 175.0 %
Riyad Capital (97.00) 80.29 182.8 %
AlJazira Capital (89.00) 80.29 190.2 %
SNB Capital (87.00) 80.29 192.3 %

Current
Market Cap (M Riyal) 39,270.00
Enterprise Value (EV) (M) 43,798.25
Shares Outstanding ((M)) 770.00
EPS ( Riyal) (TTM) 3.12
Book Value (BV) ( Riyal) 23.72
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 15.92
P/E (TTM) 16.33
Price/book 2.15
Return on Average Assets (%) (TTM) 6.1
Return on Average Equity (%) (TTM) 13.7

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