Mobily's profit growth spurred by data demand

Saudi Arabian telco increases profits by 11% in fourth quarter
Data growth helped Mobily to increase its revenues and profits in 2012.
Data growth helped Mobily to increase its revenues and profits in 2012.

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Saudi Arabia’s Mobily posted a net profit of SR 1.878 billion ($500m) for the fourth quarter of 2012, a rise of 11% compared to SR 1.697 billion for the same quarter in 2011, and an increase of 24% on the previous quarter.

Fourth quarter revenues reached SR 6.772 billion, compared to SR 5.802 billion in the same period of 2011, marking an increase of 17%.

The increase in the fourth quarter compared to the previous quarter was further influenced by the Hajj season.

Net profits for the full year were SR 6.018 billion compared to SR 5.083 billion for the previous year, an increase of 18%. Mobily’s full year revenues for 2012 also increased by 18% to SR 23.642 billion, compared to SR 20,052 billion in 2011.

Mobily attributed this growth to an increase in data revenues which rose by 41% year-on-year and accounted for 27% of total revenues in 2012.

The increase in full year revenues was also due to the rise in data revenues, as well as growth in the business sector and sales of smart phones, Mobily said in a statement.

Mobily said that the volume of data traffic over the wireless broadband network reached 750 terabytes a day, compared to 163 terabyte in 2011, and 85 terabyte a year earlier. Revenues from the fibre optic and 4G networks increased by more than 70% on the previous year.

Earnings per share for the full year amounted to SR 8.60, compared to SR 7.26 in 2011.
 

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