Mobily's losses increase in FY 2017 compared to FY 2016

Operator marked a quarterly growth in revenues in Q4, 2017 compared to Q3, 2017 for the first time since 2015
Pricing competition and regulatory challenges have intensified in the Saudi telecom market.
Pricing competition and regulatory challenges have intensified in the Saudi telecom market.

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Saudi telco Mobily's QoQ results for Q4, 2017 showed an increase in losses by 4%, while YoY results marked a rise in losses by 11million SAR($2.9 million), and FY-17 showed an increase in loss compared to FY-16. 

Revenues for 2017 declined by 9.7% YoY. Q4 marked a first quarter of growth by 0.7% versus the previous quarter, despite a challenging year where revenues remained under pressure.

The operator has attributed this to pressure on consumers' purchasing power, decrease in interconnection rates as a result of mobile termination rate reduction, intensified competition and challenging regulatory environment.

The company maintained a flat EBITDA margin in Q4, 2017 (versus Q3, 2017 and Q4, 2016), and in FY-17 (versus FY-16).

The year 2017 marked Mobily's conclusion of a seven years' refinancing facility (valued at 7.9 billion SAR or $2.1 billion) with a group of Saudi banks, releasing liquidity risk and re-profiling the debt of the company to match its cash flow. The company also went ahead with a new vision and brand positioning. It revamped its product portfolio, organisational structure, sales model, and started large scale IT transformation and network modernisation. 

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