Mobily is succeeding in reducing its debts, says CEO

Etihad Etisalat Co.’s (Mobily) main focus now is to reduce its debts, chief executive Ahmed Abou Doma told CNBC Arabia.

The company currently has no problem paying its debts, as installments are being paid before their due dates, he said.

“Since the beginning of 2017, we were able to reduce net debt by SAR 2.7 billion to SAR 11.3 billion by the end of 2018,” he said.

A strong cash flow, and rolling out the 5G network in 2019 will be reflected in lower debt levels, he added.

The new frequencies that were recently awarded to Mobily will be added to the current 4G and 5G networks, a good opportunity that will reduce the cost of 5G stations, he said.

When asked about potential sector changes, Abou Doma said he doesn’t expect any surprises or regulatory changes in the coming period, as the method of calculating government fees is quite clear.  

Commenting on Mobily’s Q4 results, he said that revenue was strong, lifted by the corporate segment— especially the government sector. He said the state has conducted a complete transformation that will allow the telecom sector to offer various tech services.

According to data compiled by Argaam, the telecom operator turned to net profit of SAR 80 million in Q4 2018, after zakat and tax, compared to net losses of SAR 182 million a year earlier.