Mobily swings to profit in H1 2019 on higher revenue

21/07/2019 Argaam Exclusive

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Share Price

51.20
0.20 0.39 %

Etihad Etisalat Co. (ETIHAD ETISALAT)

Etihad Etisalat Co. (Mobily) reported net profit after zakat and tax of SAR 105.02 million in H1 2019, versus net losses of SAR 172.03 million in year-earlier period, due to a 14 percent jump YoY in revenues to SAR 6.5 billion on higher sales of business, wholesale sectors and improved client base.



Financials (M)

Item 6m 2018 6m 2019 Change‬
Revenues 5,727.23 6,531.88 14.0 %
Gross Income 3,437.66 3,795.01 10.4 %
Operating Income 243.43 601.32 147.0 %
Net Income (172.03) 105.02 161.0 %
Average Shares 770.00 770.00 -
EPS (Riyals) (0.22) 0.14 161.0 %

The telecom operator posted net profit after zakat and tax of SAR 37.77 million in Q2 2019, versus net losses at SAR 78.63 million in year-earlier period, backed by a 15.1 percent rise year-on-year (YoY) in revenues to SAR 3.3 billion on higher sales of business and wholesale sectors, and improved client base.

 

The operator also cited a 10.2 percent YoY increase in gross profit to SAR 1.95 billion in Q2 on the implementation of the IFRS 16. EBITDA rose 14.54 percent YoY to SAR 1.2 billion, while EBIT more than doubled YoY to SAR 261 million, despite higher financing costs.

 

Meanwhile, the telco’s Q2 net profit declined 43.8 percent quarter-on-quarter, driven by higher selling and marketing expenses on seasonality factors in addition to the fact that Q1 2019 included one-off receivables.



Current Quarter Comparison (M)

Compared With The
Item Q2 2018 Q2 2019 Change‬
Revenues 2,894.72 3,330.92 15.1 %
Gross Income 1,774.90 1,956.30 10.2 %
Operating Income 150.19 331.00 120.4 %
Net Income (78.63) 37.77 148.0 %
Average Shares 770.00 770.00 -
EPS (Riyals) (0.10) 0.05 148.0 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
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
Q1 2019 3,200.96 13.0 % 1,838.71 10.6 % 67.25 172.0 % 0.09
Q2 2019 3,330.92 15.1 % 1,956.30 10.2 % 37.77 148.0 % 0.05

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
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 %)
Q1 2019 55.24 % 34.61 % (2.79 %)
Q2 2019 54.77 % 36.27 % (1.66 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
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
Q1 2019 770.00 0.05 (0.44) 17.94
Q2 2019 770.00 0.20 (0.27) 17.97

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
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
Q1 2019 More than 50 NEG 1.21
Q2 2019 More than 50 NEG 1.36

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
Q1 2019 2,526.02 367.74 266.72 40.49
Q2 2019 2,625.28 402.33 258.98 44.32

Analysts Estimates (Million)

Item Q2 2019 (e) Q2 2019 (a) Change‬
Average 63.18 37.77 (40.2 %)

Estimates vs Actual (Million)

Item Q2 2019 (e) Q2 2019 (a) Change
Riyad Capital 53.00 37.77 (28.7) %
Al Rajhi Capital 57.00 37.77 (33.7) %
AlJazira Capital 68.70 37.77 (45.0) %
SNB Capital 74.00 37.77 (49.0) %

Current
Market Cap (M Riyal) 39,424.00
Enterprise Value (EV) (M) 42,749.96
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) 15.98
P/E (TTM) 16.39
Price/book 2.16
Return on Average Assets (%) (TTM) 6.2
Return on Average Equity (%) (TTM) 13.7

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