Mobily H1 Profit Rises 11.5%, Declares SAR 1.07 Billion Interim Dividend

Riyadh | EcoPulse24

Alongside its financial results, Mobily's Board of Directors approved an interim cash dividend of SAR 1.0745 billion for the first half of 2026, equivalent to SAR 1.40 per share, representing 14% of the stock's par value. Shareholders registered on July 30, 2026 will be eligible for the distribution, with payment scheduled for August 19, 2026.

Saudi telecom operator Etihad Etisalat Co. (Mobily) reported stronger financial results for the first half of 2026, with net profit attributable to shareholders rising 11.5% year over year to SAR 1.781 billion, supported by higher revenue across all business segments and continued operational efficiency.

According to the company's preliminary consolidated financial statements for the six months ended June 30, 2026, revenue increased 5.3% to SAR 10.12 billion, compared with SAR 9.61 billion a year earlier.

Gross profit rose 9.5% to SAR 5.669 billion, while operating profit climbed 12.9% to SAR 1.966 billion, reflecting continued improvement in profitability.

Mobily Declares Interim Cash Dividend

The board approved the distribution of SAR 1.0745 billion in interim cash dividends to shareholders for the first half of 2026.

Dividend Details

The company noted that treasury shares allocated to its long-term employee incentive program are not eligible for dividend payments. It also reminded non-resident investors that dividend distributions remain subject to a 5% withholding tax under Saudi tax regulations.

Customer Growth Supports Revenue Expansion

Mobily attributed the stronger performance primarily to revenue growth across all business segments, driven by an expanding customer base.

EBITDA increased 9.3% year over year to SAR 3.934 billion, while the EBITDA margin improved to 38.9%, compared with 37.5% in the first half of 2025, highlighting stronger operating efficiency.

Earnings per share also increased to SAR 2.32, up from SAR 2.07 a year earlier, while shareholders' equity expanded 7.3% to SAR 20.87 billion.

Second Quarter Continues Positive Momentum

During the second quarter alone, Mobily generated revenue of SAR 5.08 billion, up 5.2% from the same period last year and 0.8% higher than the previous quarter.

Quarterly net profit reached SAR 901 million, representing an 8.6% annual increase and a 2.4% sequential gain.

The company said higher revenue across all operating segments supported earnings growth despite an increase in other net expenses due to lower profit contributions from a joint venture.

Capital Expenditure Declines

Mobily reported capital expenditure of SAR 1.287 billion during the first half of 2026, compared with SAR 2.697 billion in the corresponding period of last year.

The company also confirmed that its independent auditor issued an unmodified opinion on the interim financial statements with no qualifications.

Financial Highlights

EcoPulse24 Analysis

Mobily's latest results indicate that earnings growth is being supported by both expanding revenue and improving operating efficiency rather than one-off gains.

The combination of higher revenue, stronger EBITDA margins and double-digit operating profit growth suggests that the company's core business remains resilient despite a competitive telecommunications market.

One notable development is the significant decline in capital expenditure compared with the previous year. This could indicate that Mobily is moving beyond a period of heavy network investment toward maximizing returns from existing infrastructure, although future investment trends will remain an important indicator for investors.

The dividend announcement reinforces management's confidence in Mobily's cash generation and balance sheet strength. Returning more than SAR 1 billion to shareholders while delivering double-digit earnings growth signals that the company continues to generate sufficient operating cash flow to fund both shareholder distributions and ongoing investment. For income-oriented investors, the combination of rising profitability and a consistent dividend policy strengthens Mobily's investment profile within the Saudi telecommunications sector.

Overall, the results reinforce the strength of Saudi Arabia's telecommunications sector, which continues to benefit from rising demand for digital services, cloud computing, enterprise connectivity and AI-driven applications. For investors, Mobily's consistent revenue growth, improving profitability and clean audit opinion point to solid operational execution heading into the second half of 2026.