SIGMIX: Comprehensive Analysis of Etihad Etisalat's Financial Performance

Etihad Etisalat, commercially known as "Mobily," was established after obtaining a license from the Communications and Information Technology Commission in the early 2000s, becoming the second-largest mobile service operator in the Kingdom after Saudi Telecom Company (STC). Mobily is distinguished by offering a wide range of telecommunications services, including mobile phone services, wireless internet, and digital communication solutions for individuals and businesses. Since its inception, the company has focused on innovation and developing its infrastructure to keep pace with the rapid technological advancements. Mobily is a cornerstone of the digital transformation ecosystem within Saudi Vision 2030, continuously striving to expand its market share through strategic local and international partnerships, while committed to improving service quality and providing competitive solutions that meet customer needs.

Etihad Etisalat's stock witnessed strong financial performance during 2024 and 2025. The company's net profit by the end of 2024 reached SAR 3,107 million, representing a growth rate of 39% compared to 2023. This growth was driven by an 8.6% increase in revenues to SAR 18,206 million, alongside a 6.9% rise in gross profit and a 9% increase in operating income, reaching SAR 3,246 million. In 2025, the positive momentum continued, with the company recording a net profit of SAR 767 million for the first quarter (annual growth of 20%), and a net profit of SAR 1,597 million for the first half, up 23% from the corresponding period in 2024. For the first nine months of 2025, net profits amounted to SAR 2,513 million, reflecting robust financial performance and improved operational profitability.

The price of Etihad Etisalat's stock has been positively influenced by the continuous improvement in the company's results. In mid-2024, the stock price ranged between SAR 40 and SAR 45, but it rose by the end of the year to around SAR 50 or more at the beginning of 2025, achieving an annual growth exceeding 20%. This performance was derived from strong financial results and increased investor confidence, in addition to heightened liquidity and stability within major market indices such as "TASI" and "MT30." It is important to note that the stock price is also affected by general market conditions, sector results, and quarterly company announcements, creating periodic fluctuations prior to the announcement of results or major developments.

The market value of Etihad Etisalat at the end of 2025 was approximately SAR 38–40 billion, based on the stock price and the number of outstanding shares (about 770 million shares). The price-to-earnings ratio (P/E) stands between 12-13 times based on the earnings per share for 2024 (SAR 4.03) and the approximate stock price (SAR 50). This level reflects an average valuation for companies in the sector and indicates market confidence in the sustainability of the company's profitability. Cash distributions are also an attractive feature of the stock, as the board of directors is keen to distribute a portion of profits, with a constant review of the distribution policy to ensure a balance between rewarding shareholders and meeting growth and investment needs.

The Saudi telecommunications sector is one of the most dynamic, supported by Saudi Vision 2030 and digital transformation efforts. Three main companies compete in this sector: Saudi Telecom Company (STC), which dominates about 65-70% of the market, Etihad Etisalat (Mobily) in second place, and Zain Saudi Arabia, along with virtual network operators. Competition is focused on data services, expanding 5G coverage, and innovative digital offerings. The market is experiencing saturation in subscription rates, prompting companies to innovate and develop value-added services, especially in light of the government's direction to enhance smart cities and expand fiber optic infrastructure. Mobily, in turn, invests in technological partnerships and operational efficiency to face competition and achieve sustainable growth.

The increase in Mobily's profits is attributed to several key factors. Firstly, the continuous growth in the customer base, especially with the rising demand for data services and high-speed internet. Secondly, the company's success in diversifying revenue sources through digital services and business solutions. Thirdly, cost management efficiency, as the company has managed to improve operational profit margins by rationalizing expenses and adopting advanced operating systems. Finally, leveraging investments in infrastructure and modern technologies such as 5G has enhanced the company's ability to meet the growing digital market needs.

Mobily has witnessed several strategic developments during 2025. In December 2025, it announced the termination of the Red Bull Mobile hosting services contract, in a move to restructure partnerships and focus on core markets. Additionally, it signed a new contract with a management company worth SAR 18 million annually to improve the management of certain services. Regarding leadership, the chairman's statements confirmed the continued focus on sustainable growth and regular dividends. The company maintained regular announcements of its quarterly financial results, enhancing information transparency and investor confidence, with stock price movements often linked to these results and announcements.

Competition is intense between Etihad Etisalat (Mobily), Saudi Telecom Company (STC), and Zain Saudi Arabia. STC holds a significant market share and substantial investments, while Zain seeks to enhance its position by expanding 5G services. Mobily focuses on operational excellence and developing digital services, alongside cost rationalization and expanding partnerships. The main challenges facing all companies include market saturation and price pressures, but opportunities lie in the increasing demand for digital services, government support for tech projects, and the adoption of IoT and AI solutions.

Mobily is keen to reward its shareholders through regular cash dividends, especially in light of achieving good profits. The board reviews the distribution policy annually to ensure alignment with profit growth and investment needs. In recent years, dividends have been announced following strong financial results, with a commitment to maintaining this policy when exceptional profits are achieved. It is always recommended to follow the company's official announcements and board decisions through the Tadawul platform for the latest details on distributions.

Mobily places great importance on sound governance and developing its administrative structure. In recent years, there has been a strengthening of the board's composition and the development of internal control mechanisms, in line with the requirements of the Saudi financial market and disclosure and transparency regulations. The company also engages external partners to improve operational services and implement strategic projects, as part of its efforts to establish a culture of efficiency and innovation and ensure sustainable growth and added value for shareholders.

Mobily's quarterly results have a direct impact on stock performance in the market. There is often a sense of anticipation among investors prior to financial results announcements, leading to increased liquidity and price volatility. If profits exceed expectations, the stock often sees a rise in demand and price, and vice versa. Therefore, the company is keen to issue its quarterly data regularly and transparently, enhancing its credibility and increasing investor confidence in the stock over the long term.

The future of Etihad Etisalat's stock is influenced by several factors, including the ongoing digital transformation in the Kingdom, the development of telecommunications technologies (such as 5G and IoT), and government trends in supporting digital infrastructure. Intense competition, macroeconomic dynamics (such as interest rates and inflation), and regulatory policies also play a crucial role in determining the stock's attractiveness. The company's monitoring of the latest technological trends and its continuous investment in developing its services are critical factors in enhancing its market position and sustaining its financial performance.

Investors and those interested in Etihad Etisalat's stock are advised to monitor periodic financial reports and official disclosures issued by the company and the Tadawul platform. These reports provide updated information on financial performance, liquidity, profits, and business developments, helping to form an accurate picture of the company's status and future prospects. Disclosures also allow for insight into any significant changes in distribution policies, partnerships, or management structure, all of which impact investment decisions.