Mobily's Q4 2020 profit driven by higher revenue; good opportunities on anvil: CEO

Salman A. Al-Badran, CEO of Etihad Etisalat Co.

Etihad Etisalat Co. (Mobily) turned to a net profit in the fourth quarter of 2020 on the back of higher revenue, CEO Salman A. Al-Badran told Argaam in an exclusive.

The focus on digital channels played a significant role in minimizing the impact of the COVID-19 pandemic on the company, he explained, adding the move improved operational efficiency and reduced financing costs.

The Saudi-listed firm also recorded growth in subscribers' number during the past year, mainly due to its excellence in customer service.

Mobily sees potential growth in the telecommunications sector in light of the Vision 2030, Al-Badran said.

The Kingdom has mega projects under development within the digital transformation requirements; therefore, telecom operators still have an excellent opportunity to compete for these projects in the future, the CEO noted.

The business sector, the Internet of Things (IoT), and many other fields also present good opportunities for telecom operators.

Mobily will have a share in these projects, he confirmed, stating the potential is great and promising and provides an excellent opportunity for everyone to contribute to this sector.

The company was able to significantly exceed the impact of the COVID-19 pandemic, despite implementing precautionary measures and holding Hajj season with a minimal number of pilgrims in 1441 AH, which affected international roaming services and reduced billing rates for terminating calls.

The telco took necessary procedures to form a crisis response team to develop emergency plans that contributed to minimizing the impact of the pandemic on employees and business activities as well as ensuring readiness at several levels.

Following the gradual return of commercial activities, Mobily continued to adopt its emergency plans, which reflected positively on the financial results and mitigated the pandemic’s effect on its business.

This reflects Mobily’s commitment to implementing its strategic objectives, which revolve around growth and improvement in financial and operational performance, and focuses on enhancing customer experience and shareholders’ rights, Al-Badran said.

On the memorandum of understanding (MoU) signed with Mobile Telecommunication Company Saudi Arabia (Zain KSA), Al-Badran said Mobily aims to boost the participation rate in the telecom towers to achieve maximum efficiency, and upgrade the communication and information technology system with the support and supervision of the Communications and Information Technology Commission (CITC).

He clarified that the joint committee formed by the two companies finalized the bid proposal brochure, including all options for purchasing telecom towers owned by the two parties, or merging them into one company with other investors or operating it on their behalf.

The offers made on the available options are being received and studied, and any developments in this regard will be announced in due course, the CEO concluded.

Mobily reported a net profit after Zakat and tax of SAR 783 million for 2020, compared to SAR 31 million in 2019. The company’s Q4 2020 net profit stood at SAR 245.7 million, according to data compiled by Argaam.