Riyadh, Saudi Arabia — Mobily Q2 profits rose 25.6% year-on-year to SAR 830 million, fueled by higher revenue and stronger EBITDA margins.

Mobily Q2 Profits Surge on Revenue and Margin Gains

Etihad Etisalat Company (Mobily) reported a net profit of SAR 830 million in Q2 2025, up from SAR 661 million in Q2 2024. This 25.6% increase reflects solid financial momentum. Quarter-on-quarter, profit grew 8.2% from SAR 767 million in Q1 2025.

Revenue Growth Drives Margin Expansion

  • Revenue rose 8.1% year-on-year to SAR 4.828 billion.
  • Gross profit increased 10.3% to SAR 2.623 billion.
  • EBITDA climbed 10.5% to SAR 1.823 billion, pushing the EBITDA margin to 37.8% from 37.0%.
  • Operating profit advanced 17.4% to SAR 891 million.

Moreover, “other expenses” fell to SAR 38.7 million from SAR 69.6 million. This improvement was supported by stronger returns from joint ventures, even as financing costs rose due to spectrum amortization.

H1 2025 Profit Rises Nearly 23%

Mobily posted a net income of SAR 1.597 billion for H1 2025, marking a 22.9% increase from SAR 1.299 billion in the same period last year. Revenue climbed 6.6% to SAR 9.606 billion, while H1 EBITDA rose 9% to SAR 3.598 billion.

Investor Takeaways

  • Improved revenue mix: Growth in wholesale and business segments sustained top-line momentum.
  • Margin uplift: Operating leverage helped boost both EBITDA and operating margins.
  • Cost discipline: Lower expenses and joint venture gains strengthened profitability.
  • Strategic investments: Strong EBITDA offset rising financing costs tied to spectrum licenses.

What’s Ahead

  • Capex efficiency: H1 capital expenditure reached SAR 2.697 billion—returns will be closely monitored.
  • Dividend outlook: A 12% H1 dividend payout reflects Mobily’s focus on shareholder value.
  • Competitive pressure: Mobily, STC, and Zain must adapt to shifting consumer demand and tech investment trends.

 

THE SAUDI STANDARD’S VIEW: Mobily Q2 Profits Underscore Telecom Sector’s Strategic Role in Vision 2030

Mobily’s 25.6% Q2 profit surge and a 22.9% rise in first-half earnings affirm the telecom sector’s growing importance in Saudi Arabia’s economic landscape. These gains reflect not just financial strength, but also investment in infrastructure and digital transformation.

  • Market-Driven Growth: The sharp rise in gross profit and EBITDA shows sustained demand for digital services across consumer and enterprise markets.
  • Operational Strength: Improved EBITDA margins and lower expenses show that Mobily manages costs effectively, even with higher financing tied to spectrum assets.
  • Infrastructure-Linked Performance: Earnings growth is tied to national projects such as 5G rollout and smart city development, highlighting telecom’s role in economic modernization.
  • Agile Financial Model: Reduced taxes and higher joint venture income suggest financial flexibility and the ability to reinvest for future growth.

In conclusion, Mobily’s Q2 profits reflect more than quarterly success—they underscore the company’s strategic alignment with Saudi Arabia’s Vision 2030 digital goals. Mobily and the telecom sector at large are key pillars of the Kingdom’s connected future.

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