By: Mohamed Idris
Riyadh – Mubasher: Etihad Etisalat “Mobily” is currently working on reviewing all of its assets and required depreciation expenses in accordance with the board of directors’ policy and with the external auditor’s recommendation, stated CEO Ahmad Farroukh.
The reason behind the rise in depreciation expenses to SAR 95 million in Q1-16 was due to telecom companies’ operations which entail having large and complicated assets, the CEO told Mubasher in a phone interview on Thursday.
Farroukh highlighted that Mobily turned profitable in Q1-16 on the back of improved operational efficiency.
Profit margin before EBITDA grew to SAR 1.116 billion in the first three months of the year, representing 32% of revenues, up from SAR 932 million in Q1-15, which represented 25% of revenues.
These financial results reflect Mobily’s successful strategy that aims to control costs and expenses as well as see better returns on investments and fixed assets, the CEO affirmed, adding that the telecom operator hopes that such improvement will translate into better and continuous profits for the company.
Mobily, on Tuesday, reported turning to profit with SAR 17 million ($4.53 million) in Q1-16 against a net loss of SAR 45 million ($12 million) in the same period in 2015.
Translated by: Nada Adel Sobhi
