Shares of Etihad Etisalat, doing business as Mobily, surged by 4.12% on Sunday after the telecommunications service provider reaffirmed its full-year guidance following impressive third-quarter results. The Saudi Arabian company is forecasting mid- to high-single digit revenue growth for 2024, as detailed in its quarterly report released the same day.
The latest results reflect a remarkable 9.3% annual increase in revenue during the three months that ended on September 30. This growth was fueled by contributions from all revenue channels, leading to a total revenue of 4.5 billion Saudi riyals, up from 4.12 billion riyals a year earlier. The business segment, which encompasses government, corporate, and small to medium-sized business clients, emerged as the most significant contributor to this growth.
In addition to operational efficiency and the positive financial impact of a withholding tax reversal, the robust revenue growth propelled net profit to leap from 524 million riyals to 829 million riyals in the third quarter. During this period, Mobily's mobile subscriber base grew to 11.7 million, up from 11.5 million.
The wholesale division further enhanced revenue by securing a six-year agreement to host Red Bull Mobile as a mobile virtual network operator on its infrastructure, allowing Mobily to tap into a new customer segment. Additionally, Mobily entered into a live broadcast sponsorship deal with MBC Media Solutions, a collaborative effort between MBC Group and Saudi Media Co., to sponsor the live broadcasts of the Saudi Pro League of Roshn, thereby supporting the growth of Saudi Arabia's sports market..