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7020.SE (Reuters)
EEC AB (Bloomberg)
Etihad Etisalat Company (Mobily)
CMP: SR28.8
» Mobily, Saudi’s second mobile operator, launched services in May 2005. Within three years, the company gained
a market share of 41% (end 2007), with 11.1mn subscribers. Mobily has been targeting the data and internet
segment aggressively.
» In 2007, the company acquired a 99.9% stake of the local data provider Bayanat Al-Oula, and set up Mobily
InfoTech, a fully owned subsidiary in India, which will provide IT and consulting services. In addition, it acquired
96% of Zagel International Communication Network Company which is specialized in providing internet services
in Saudi Arabia. We believe that Mobily’s latest acquisitions will strengthen its position in the wireless broadband
internet segment.
SRbn 2005* 2006 2007 2008(F) 2009(F) 2010(F) 2011(F)
Sales Revenue 1.7 5.8 8.4 10.6 11.8 12.5 12.9
Gross Profit 0.7 3.2 4.6 6.1 6.8 7.3 7.7
EBITDA (0.1) 2.0 2.9 3.7 4.2 4.6 4.8
Net Profit (1.2) 0.7 1.4 1.9 2.2 2.4 2.5
Total Assets 16.2 17.7 19.9 26.5 28.2 28.9 29.2
Total Shareholders’ Equity 3.8 4.5 5.9 9.8 11.7 13.4 14.5
Ratios
Current Ratio (x) 0.11 0.18 0.52 0.62 0.66 0.74 0.73
Quick Ratio (x) 0.11 0.17 0.50 0.61 0.65 0.73 0.72
Gross Profit Margin (%) 41.8 54.1 55.1 57.4 57.5 58.5 59.7
EBITDA Margin (%) (6.8) 34.3 34.9 35.2 36.1 36.5 37.0
Net Profit Margin (%) (70.3) 12.0 16.3 17.7 18.4 19.0 19.4
Return on Average Assets (%) (7.2) 4.1 7.3 8.1 7.9 8.3 8.6
Return on Average Equity (%) (30.5) 16.7 26.4 24.3 21.1 20.7 20.2
EPS (SR) NA 1.0 2.0 2.7 3.1 3.4 3.6
Book Value Per Share (SR) 5.5 6.5 8.4 14.0 16.7 19.1 20.7
EV/EBITDA NA 18.8 16.6 6.2 5.5 4.9 4.6
Market Price (SR) 110.5 41.1 58.0 28.8 28.8 28.8 28.8
P/E Ratio (x) NA 41.0 29.4 10.8 9.3 8.5 8.1
P/BV (x) - 6.3 6.9 2.1 1.7 1.5 1.4
Historical P / E & P / BV multiples pertain to respecitve year -end prices, while those for future years are based on closing prices on the TASI as of Dec 29, 2008. (*From 14/12/04 to 31/12/05)
(Source: Company Reports & Global Research)
Global Investment House 104 Saudi Arabia Economic Overview - January 2009