Etihad Etisalat Company- Mobily announced its 2Q-2010 results

Etihad Etisalat Company, also known as Mobily announced its 2Q-2010 results. Net profits witnessed an increase of 33.5%YoY in 2Q-2010 to SR901mn while operating profits increased by 29.1%YoY to SR940mn. Sales revenue grew by 24.2%YoY to SR3,972mn in 2Q-2010. The company cited increase in demand for broadband services and increase in post-paid subscriber base as the reason behind the growth in revenues.

Mobily has managed to carve out an effective marketing and promotional strategy to lure high-value post paid customers. The impact of high value post-paid customers is reflected in the increase in EBITDA margins to 34.9% in 2Q-2010 from 32.9% in 1Q-2010. EBITDA grew by 22.8%YoY to SR1,388mn which was attributed to a rise in international inter-connection margin. The improvement came after 1Q-2010 witnessed intense competition on the international front as the incumbent operator embarked on international call price cuts and promotions.

According to the press release, the focus will be on broadband and wholesale revenues which will drive future growth. The company is also investing in TGN Gulf Cable System which is expected to get completed in 2011. The new cable will provide increased connectivity both inside and out of Saudi Arabia and allow speeds upto 1.2 Terabits/second. According to the press release, the company has also completed the trials of HSPA with a speed of 42 Mbps before its launch in the major cities. Mobily currently covers 90.0% of the populated areas in Saudi Arabia with its broadband network.