Company Profile: Mobily (Etihad Etisalat Company)

Background

Company Overview

Etihad Etisalat Company, widely known as Mobily, is a leading telecommunications, media, and technology (TMT) company in Saudi Arabia. Established in 2004, Mobily has played a pivotal role in transforming the Kingdom's telecommunications landscape by breaking the monopoly and introducing competitive mobile services. The company's major shareholders include Etisalat Emirates Group (27.99%) and the General Organization for Social Insurance (6.90%), with the remaining shares held by institutional and retail investors.

Mission and Vision

• Vision: Empower the Digital Economy to Unlock Possibilities.

Core Values

• Agile: Open, flexible, and making every second count.

• Courageous: Brave enough to take bold steps and determined to see them through.

• Clear: Keeping things transparent and straightforward.

• Caring: Valuing individuals and embracing diversity in thought and perspective.

Key Strategic Focus

Mobily's strategic focus centers on accelerating growth and enhancing operational efficiency. The company aims to adopt a stakeholder-driven approach, rethink processes for a seamless experience, and boost talent capabilities and well-being. This strategy aligns with Saudi Vision 2030, emphasizing digital transformation and infrastructure development.

Areas of Specialization

• Consumer Services: Offering a range of mobile and broadband services, including 5G connectivity, to individual customers.

• Business Solutions: Providing enterprises with digital solutions such as cloud computing, Internet of Things (IoT), and data center services.

• Wholesale Services: Expanding international presence and connectivity through partnerships and infrastructure investments.

Key Technologies Utilized

• 5G Network: Extensive deployment across major cities, enhancing mobile internet speeds and coverage.

• IoT Platforms: Development of IoT solutions in collaboration with partners like Huawei.

• Cloud Computing: Establishment of data centers and cloud services to support digital transformation initiatives.

Primary Markets Targeted

• Individual Consumers: Enhancing customer experience through innovative products and services.

• Enterprises: Supporting businesses with digital solutions to drive efficiency and growth.

• Government Projects: Collaborating on national initiatives aligned with Saudi Vision 2030.

Financials and Funding

Financial Performance

In 2023, Mobily achieved a net income growth of 34.7%, reaching SAR 2.2 billion. Revenues increased by 6.7% year-on-year to SAR 16.7 billion, driven by growth across all revenue streams. EBITDA grew by 7.2% to SAR 6.6 billion, with an EBITDA margin of 39.5%. Dividends for shareholders increased by 26.1% to SAR 1.45 per share.

Funding History

Mobily has been listed on Saudi Arabia’s Tadawul stock exchange since 2004, with a share capital of SAR 7,700 million, comprising 770 million shares of SAR 10.00 each.

Pipeline Development

Key Initiatives

• 5G Expansion: Continued rollout of 5G services, expanding coverage to 52 cities with 5,900 sites, achieving over 84% coverage in seven main cities.

• Data Centers: Construction of two new data centers in Riyadh and Jeddah to enhance colocation capacity and exceed Tier III standards.

• Mobily Pay: Launch of a digital e-wallet service, rapidly becoming a top-tier platform with a 4.7/5 rating in app stores.

Timelines for Milestones

• 2024: Completion of new data centers and further expansion of 5G network coverage.

• 2025: Launch of two new international cables to enhance global connectivity.

Technological Platform and Innovation

Proprietary Technologies

• IoT Cloud Platform: In partnership with Cisco, building the region’s largest IoT cloud platform to support innovations in payments, smart cities, and industrial applications.

Significant Scientific Methods

• AI-Driven Network Optimization: Utilizing artificial intelligence to analyze 5G networks, diagnose issues, and develop solutions with measurable results.

Leadership Team

Key Executives

• Salman Bin Abdulaziz Al Badran: Chief Executive Officer since 2019, recognized among the top 10 business chiefs in the global brand protection index.

• Khalid Abdulrahman Abanami: Chief Financial Officer, overseeing financial strategy and reporting.

• Nabeel Al-Amoudi: Chairman of the Board of Directors, providing strategic oversight.

Leadership Changes

As of the latest available information, there have been no recent significant changes or appointments within Mobily's leadership team.

Competitor Profile

Market Insights and Dynamics

The Saudi telecommunications market is highly competitive, with a rapidly growing mobile penetration rate. The market is characterized by significant investments in network infrastructure and a focus on digital transformation initiatives aligned with Saudi Vision 2030.

Competitor Analysis

• Saudi Telecom Company (STC)