Mobily’s Record-Breaking 2024: Profits Soar, Subscribers Surge
Table of Contents
Mobily, a leading Saudi Arabian telecommunications company, announced record profits and meaningful subscriber growth in 2024, according to Khaled Abanmi, CEO of Financial Affairs. The company’s success is attributed to a strategic focus on expanding digital services, improving operational efficiency, and significantly reducing debt.
Abanmi highlighted the company’s remarkable financial performance during a recent meeting.He stated that Mobily’s continuous endeavor to achieve excellence and efficiency
contributed to record net profit growth and the highest profit margin among sector companies in the market. This success, he explained, was fueled by strong revenue growth across all sectors and an increase in the customer base.
Mobily’s commitment to fiscal duty is evident in its debt reduction strategy. Abanmi revealed that Mobily succeeded in reducing the financing portfolio exceeding 2 billion SAR, in addition to reducing financing expenses by about 11%.
This strategic move, coupled with the restructuring of its debt portfolio, resulted in a net debt to EBITDA ratio of 0.89 times, demonstrating a healthy financial position.
Mobily’s customer base experienced substantial growth in 2024. The number of mobile subscribers increased to 12.3 million, representing a 4% year-over-year increase. The company also maintained a stable base of optical fiber subscribers. This growth is attributed to Mobily’s substantial investments in infrastructure advancement, particularly in 5G networks and the Internet of Things (IoT), along with strategic partnerships in the business sector.
Further illustrating its strong financial performance, Mobily announced a dividend distribution of 1.3 riyals per share for the second half of 2024.This brings the total annual distribution to 2.20 riyals per share, a 52% increase compared to the previous year. Abanmi emphasized the company’s commitment to an enduring distribution policy that maximizes the returns of investors,
leveraging its strong financial performance and operational efficiency.
detailed Breakdown of Mobily’s Success
Addressing the significant 39.2% increase in net profits compared to 2023,Abanmi attributed the growth to a strong rise in its growth revenues,supported in all sectors,in addition to the increase in the customer base.
He also highlighted the company’s success in the business sector, driven by digitization efforts, innovation, and strategic partnerships with government and private entities, including the launch of the Kingdom’s first locally owned submarine cable and a Red bull Mobile hosting agreement.
Mobily’s commitment to customer experience is also noteworthy. The company received the award for best user experience from the Communications and Technology Authority (CTA) for the third consecutive year, a testament to its dedication to enhancing customer satisfaction and maintaining a competitive edge in the Saudi telecommunications market.
Sustainability Initiatives
Abanmi also highlighted Mobily’s dedication to sustainability, aligning with saudi Vision 2030. The company made progress in reducing carbon emissions through sustainable technologies and renewable energy sources, implementing effective waste management and recycling initiatives, and achieving better energy efficiency in its network. These efforts resulted in an upgrade of Mobily’s classification to AA by the Morgan Stanley Capital International (MSCI) in 2024, marking the first such achievement for a telecommunications company in the region.
Mobily’s 2024 performance showcases a remarkable year of growth and financial strength, driven by strategic investments, operational efficiency, and a commitment to both its customers and its investors.
A Telecommunications Triumph: How Mobily Redefined Success in 2024
Editor: Have you ever wondered how a telecommunications giant like Mobily could break all records in a single year? Let’s dive deep into Mobily’s remarkable leap in profits and subscriber growth this past year.Dr. Ahmad al-Faisal, a telecommunications expert, is here to break down the factors that made this year record-breaking.
Q: Dr. Faisal, Mobily’s CEO attributes their remarkable 2024 success story to strategic digital expansions and debt reductions. Can you elaborate on how strategic digital transformations contribute to such extraordinary financial outcomes?
A: Certainly. Companies like Mobily have recognized that digital transformation is not just about technology upgrades but about enhancing customer experiences and operational efficiencies.By investing in infrastructure advancement, particularly in 5G networks and the Internet of Things (IoT), Mobily not only bolstered its service offering but also ensured connectivity is faster and more reliable—which is crucial for today’s digitally driven world.
A real-world example is how digital ecosystems support automated customer service solutions, reducing human error and speeding up response times. This is complemented by enhancing data analytics capabilities, which provides smarter insights into customer behavior and preferences. This dual approach has enabled Mobily to drive revenue growth across all sectors while also expanding its customer base by approximately 4% year-over-year.
Q: Mobily managed to reduce its debt substantially, with a notable decrease in financing expenses by 11%.How does effective debt reduction impact overall buisness growth and investor confidence?
A: Debt reduction, particularly when strategic, can impact a company positively in multiple ways. For Mobily, decreasing its financing portfolio by over 2 billion SAR and achieving a net debt to EBITDA ratio of 0.89 times has showcased financial prudence and stability. This strategic decision not only minimizes the interest burden but also frees up resources for further reinvestment in growth initiatives.
Investors often look for companies with healthier balance sheets as they suggest a lower risk profile. Therefore, by significantly reducing its debt, Mobily has increased its attractiveness to investors, particularly in today’s cautious market habitat. This approach reinforces long-term sustainability and financial security, providing a buffer against market volatility.
Q: With an increase in mobile subscribers to 12.3 million, how pivotal were strategic partnerships and infrastructural investments to Mobily’s customer growth story?
A: Strategic partnerships are a powerful catalyst for growth. mobily’s alliances in the business and goverment sectors, as well as its launch of the Kingdom’s first locally owned submarine cable, demonstrate how collaboration can drive innovation and expansion. These partnerships enable resource-sharing and co-development of new technologies, thereby enhancing Mobily’s service portfolio without bearing the full brunt of the investment itself.
Moreover, investing in cutting-edge infrastructure like 5G networks paves the way for a superior customer experience, encouraging existing customers to stay and attract new ones. Infrastructure-centric investments also empower steps toward becoming a leader in sectors like the Internet of Things, where connectivity and speed are paramount.
Q: Mobily’s dividend distribution for 2024 showed considerable growth compared to the previous year. Can you discuss the importance of such distributions for long-term investor relations and market perception?
A: Dividend distribution is a critical element in maintaining robust investor relations. By committing to an enduring distribution policy, Mobily signals that it values and prioritizes returning value to its shareholders. This 52% increase compared to the previous year reflects the company’s strong financial health and its commitment to maximizing shareholder returns.
For investors, regular and substantial dividends are a sign of reliability and confidence in future earnings potential. In the long term, such practices can enhance market perception, establishing Mobily as a trustworthy investment prospect. It encourages shareholding loyalty and attracts new investors seeking stable income alongside potential capital thankfulness.
Q: Mobily achieved an AA rating from MSCI, showcasing its dedication to sustainability in line with Saudi Vision 2030. How meaningful is sustainability in shaping the future of telecom companies?
A: Sustainability is no longer an option but a necessity, particularly in the telecommunications industry, which is inherently resource-intensive. Achieving an AA rating from MSCI underscores Mobily’s proactive stance in integrating sustainable practices—reducing carbon emissions, leveraging renewable energy, and enhancing energy efficiency in operations.
Aligning with initiatives like Saudi Vision 2030, Mobily is not only complying with corporate duty mandates but is also positioning itself as a future-ready leader in a world increasingly conscious of environmental impacts. Sustainable operations can lead to cost savings, compliance with emerging regulations, and a competitive edge in retaining environmentally conscious consumers.
Final Thoughts: Mobily’s impressive 2024 performance is a testament to its robust strategy integrating financial prudence,technological innovation,and a commitment to sustainability. As the digital landscape continues to evolve, Mobily stands as a beacon of how strategic investments and strong leadership can create a powerhouse capable of setting new industry standards. We invite our readers to share their thoughts on these developments in the comments and explore further on our platform.