Mobily’s H1 2022 net profit up 45% to SAR 679 mln; Q2 jumps 48% to SAR 360 mln

Mobily’s H1 2022 net profit up 45% to SAR 679 mln; Q2 jumps 48% to SAR 360 mln

28/07/2022 Argaam Exclusive

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Etihad Etisalat Co. (Mobily) reported a net profit after Zakat and tax of SAR 679 million for the first half of 2022, a jump of 45% from SAR 470 million in the year-earlier period. 



Financials (M)

Item 6m 2021 6m 2022 Change‬
Revenues 7,330.52 7,709.76 5.2 %
Gross Income 4,218.61 4,570.70 8.3 %
Operating Income 740.26 973.90 31.6 %
Net Income 469.67 678.53 44.5 %
Average Shares 770.00 770.00 -
EPS (Riyals) 0.61 0.88 44.5 %

The higher profit was backed by a 5.2% year-on-year (YoY) rise in revenue to SAR 7.71 billion, on growth in wholesale, business and consumer segments. The telco also reported a healthy increase in the fiber to the home (FTTH) active base and overall subscriber base.

 

Gross profit rose 8.3% to SAR 4.571 billion from SAR 4.219 billion in H1 2021.

 

The telecom operator also cited YoY growth of 8.1% in earnings before interest, taxes, depreciation, and amortization (EBITDA) to SAR 2.928 billion, leading to an EBITDA margin of 38% for H1 2022, compared to 37% in the first half of 2021.

 

Meanwhile, finance charges increased 8% YoY to SAR 268 million. Zakat expenses also rose to SAR 55 million in H1 2022, from SAR 38 million in the prior-year period.



Current Quarter Comparison (M)

Compared With The
Item Q2 2021 Q2 2022 Change‬
Revenues 3,727.84 3,898.75 4.6 %
Gross Income 2,147.05 2,333.12 8.7 %
Operating Income 378.72 513.01 35.5 %
Net Income 243.80 359.50 47.5 %
Average Shares 770.00 770.00 -
EPS (Riyals) 0.32 0.47 47.5 %

In Q2 2022, net profit after Zakat and tax climbed 48% to SAR 360 million, from SAR 243.8 million in the corresponding period of 2021, on a 4.6% YoY revenue growth to SAR 3.899 billion.

 

Gross profit climbed 8.7% to SAR 2.333 billion from SAR 2.147 billion in Q2 2021.

 

The telecom operator also cited a 10.3% YoY growth in EBITDA to SAR 1.482 billion, leading to an EBITDA margin of 38% in Q2 2022, compared to 36.1% in Q2 2021.

 

Meanwhile, finance charges jumped 17.6% YoY to SAR 143 million. Zakat expenses also rose to SAR 25 million in Q2 2022, from SAR 20 million in the prior-year period.

 

Compared to Q1 2021, net profit leapt 12.8% from SAR 319 million.

 

Shareholders’ equity, after minority interest, increased by 5.18% to SAR 15.296 billion as of June 30, 2022, from SAR 14.542 billion a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
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
Q3 2019 3,403.71 14.4 % 2,015.36 14.6 % 51.06 265.1 % 0.07
Q4 2019 3,514.39 11.2 % 1,989.62 43.5 % (124.89) (255.6 %) (0.16)
Q1 2020 3,599.62 12.5 % 2,065.40 12.3 % 130.28 93.7 % 0.17
Q2 2020 3,558.78 6.8 % 2,061.99 5.4 % 185.17 390.2 % 0.24
Q3 2020 3,355.01 (1.4 %) 2,055.93 2.0 % 221.87 334.6 % 0.29
Q4 2020 3,532.76 0.5 % 1,969.09 (1.0 %) 245.94 296.9 % 0.32
Q1 2021 3,602.68 0.1 % 2,071.56 0.3 % 225.87 73.4 % 0.29
Q2 2021 3,727.84 4.8 % 2,147.05 4.1 % 243.80 31.7 % 0.32
Q3 2021 3,606.12 7.5 % 2,186.11 6.3 % 281.05 26.7 % 0.37
Q4 2021 3,897.42 10.3 % 2,266.80 15.1 % 320.82 30.4 % 0.42
Q1 2022 3,811.01 5.8 % 2,237.58 8.0 % 319.03 41.2 % 0.41
Q2 2022 3,898.75 4.6 % 2,333.12 8.7 % 359.50 47.5 % 0.47

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
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 %)
Q3 2019 54.95 % 35.01 % (1.45 %)
Q4 2019 57.99 % 37.28 % 0.70 %
Q1 2020 57.96 % 36.85 % 0.94 %
Q2 2020 57.77 % 36.85 % 1.87 %
Q3 2020 58.26 % 37.28 % 2.94 %
Q4 2020 58.04 % 38.12 % 5.58 %
Q1 2021 58.07 % 38.32 % 6.26 %
Q2 2021 57.98 % 37.72 % 6.59 %
Q3 2021 57.87 % 37.34 % 6.89 %
Q4 2021 58.46 % 37.62 % 7.22 %
Q1 2022 58.75 % 37.64 % 7.74 %
Q2 2022 59.31 % 38.12 % 8.42 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
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
Q3 2019 770.00 0.31 (0.25) 18.02
Q4 2019 770.00 0.04 0.12 17.86
Q1 2020 770.00 0.12 0.17 18.00
Q2 2020 770.00 0.31 0.34 18.21
Q3 2020 770.00 0.54 0.54 18.52
Q4 2020 770.00 1.02 1.02 18.76
Q1 2021 770.00 1.14 1.14 19.06
Q2 2021 770.00 1.22 1.22 18.89
Q3 2021 770.00 1.29 1.29 19.25
Q4 2021 770.00 1.39 1.39 19.74
Q1 2022 770.00 1.51 1.51 20.26
Q2 2022 770.00 1.66 1.66 19.87

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
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 70.85 70.85 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 100 NEG 1.21
Q2 2019 More than 100 NEG 1.36
Q3 2019 78.64 NEG 1.34
Q4 2019 More than 100 More than 100 1.40
Q1 2020 More than 100 More than 100 1.20
Q2 2020 84.77 77.99 1.46
Q3 2020 53.30 53.30 1.54
Q4 2020 28.17 28.17 1.53
Q1 2021 25.89 25.89 1.55
Q2 2021 27.23 27.23 1.76
Q3 2021 24.10 24.10 1.62
Q4 2021 22.38 22.38 1.58
Q1 2022 27.44 27.44 2.05
Q2 2022 21.05 21.05 1.76

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
Q3 2019 2,614.08 454.71 289.17 45.76
Q4 2019 2,793.93 382.45 288.16 49.85
Q1 2020 2,756.69 472.95 318.35 51.63
Q2 2020 2,631.35 569.61 307.57 50.24
Q3 2020 2,515.82 473.22 314.99 50.97
Q4 2020 2,697.24 505.84 279.47 50.22
Q1 2021 2,694.80 577.46 276.56 53.86
Q2 2021 2,721.06 661.14 291.64 54.01
Q3 2021 2,590.94 629.31 323.69 62.19
Q4 2021 2,769.49 712.71 350.86 64.36
Q1 2022 2,741.92 627.89 367.11 74.09
Q2 2022 2,741.65 699.84 375.38 81.88

Analysts Estimates (Million)

Item Q2 2022 (e) Q2 2022 (a) Change‬
Average 376.93 359.50 (4.6 %)

Estimates vs Actual (Million)

Item Q2 2022 (e) Q2 2022 (a) Change
Al Rajhi Capital 376.00 359.50 (4.4) %
AlJazira Capital 344.00 359.50 4.5 %
Bank of America 378.07 359.50 (4.9) %
OSOOL AND BAKHEET 336.63 359.50 6.8 %
UBS Saudi Arabia 333.60 359.50 7.8 %
Sico 329.00 359.50 9.3 %
Hermes 328.00 359.50 9.6 %
SNB Capital 326.00 359.50 10.3 %
Riyad Capital 325.00 359.50 10.6 %
Goldman Sachs 693.00 359.50 (48.1) %

Current
Market Cap (M Riyal) 39,655.00
Enterprise Value (EV) (M) 42,980.96
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) 16.08
P/E (TTM) 16.49
Price/book 2.17
Return on Average Assets (%) (TTM) 6.2
Return on Average Equity (%) (TTM) 13.7

Share Price

51.50
0.20 0.39 %

Etihad Etisalat Co. (ETIHAD ETISALAT)


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