Mobily announces its full year consolidated financial results for year ending December 31,2012

Operational profits during the fourth quarter were SR1,902, compared to SR1,754 for the same quarter of the previous year (an increase of 8%).

Net profits for the full year were SR6,018, compared to SR5,083 for the previous year (an increase of 18%).

Earnings per share for the full year amounted to SR8.60, compared to SR7.26 in 2011.

Gross profits for 2012 were SR12,034, compared to SR10,326 in 2011 (an increase of 17%). Operational profits for 2012 were SR6,192, compared to SR5,305 in 2011 (an increase of 17%). The increase during the fourth quarter (compared to the same quarter of 2011) is attributable to the rise in data revenues. The number of visitors roaming on the companys network increased by 24%, during the Hajj season.

The increase in full year revenues is also due to the rise in data revenues, as well as growth in the business sector and sales of smart phones. The increase in the fourth quarter compared to the previous quarter was further influenced by the Hajj season occurring during this period.

Certain figures for the comparative year have been reclassified to conform with the presentation in the current year. The Companys revenues increased to SR23,642m compared to SR20,052m in 2011 (an increase of 18%).

Fourth quarter revenues were SR6,772m, compared to SR5,802 in the same period of 2011 (an increase of 17%), and compared to SR6,183m for the previous quarter (an increase of 10%). The growth is attributable to the rise in the data revenues up 41% on the previous year and comprising 27% of total revenues.

This compares to 22% for the entire of 2011 (30%% of total revenues for the quarter, compared to 28% in the same period of 2011). The volume of data traffic over the wireless broadband network reached 750 terabyte a day, compared to 163 terabyte in 2011, and 85 terabyte a year earlier.

Revenues from the fiber optic and 4G networks increased by more than 70% on the previous year. Business sector revenues also continued to increase, along with growth in the number of postpaid subscribers and the sales of smart phones. Business sector revenues increased 71% year-on-year, while revenues from postpaid subscribers accounted for 33% of total revenues.

The EBITDA increased to SR8,591m, compared to SR7,454m in 2011, an increase of 15%, and with the continuing increase in the sales of smart phones, which carry thin margins, the EBITDA margin was 36%, compared to 37% for 2011 (38% for Q4, compared to 40% for the corresponding period of the previous year and 36% for the previous quarter).

Engineer Abdulaziz Saleh Alsaghyir, Chairman of the Mobily Board of Directors, said, "The companys share increased by 45% during 2012 among the highest gains in the telecommunications sector worldwide. He added that if the cash dividend distributed by the company is taken into account, shareholders returns for 2012 will reach more than 54%."

Alsaghyir stressed, "The telecommunications industry in the Kingdom is still attractive, and that the company is planning to spend on the infrastructure more than SR22bn in the next five years, taking into consideration the return on the invested capital, to maintain its leadership in the mobile broadband sector, expand its fiber optic network across the Kingdom so that it reaches 500,000 residential units by the end of 2013."

He confirmed, "This strategy aims to maintain the companys competitiveness and raise network capacities to cater for the increasing needs of internet users and the business sector, and will contribute to positive performance in the coming years."

Alsaghyir added, "The commitment to capital expenditure will keep the companys infrastructure up-to-date so as to achieve mid to long-term growth terms, and that the companys strong financial position and executive capabilities along with lower net debt/EBITDA will allow optimum utilization of financial resources. The entry of a new mobile virtual network operator (MVNO) would not necessarily lead to price competition, and Mobily expected an increase in cash dividend distribution to shareholders with the continuing growth in profits."

The Board of Directors, in its meeting held on 17/01/2013, has recommended cash dividend distribution of SR885.50m for the fourth quarter of 2012, equivalent to SR1.15 per share, representing 11.50% of the nominal value of the share, in addition to the interim dividends of SR2,100m in the first three quarters of the year.

Shareholders on register at close of trading on the day of the annual general meeting (date to be announced) will be eligible for Q4 dividends, which will bring total distributed profit for 2012 to SR2,985.50m. The distribution date to be announced later.