Declared Dividend • Jul 22
First half dividend increased to ر.س1.40 Dividend of ر.س1.40 is 17% higher than last year. Ex-date: 2nd August 2026 Payment date: 19th August 2026 Dividend yield will be 4.8%, which is higher than the industry average of 3.6%. Sustainability & Growth Dividend is covered by both earnings (63% earnings payout ratio) and cash flows (77% cash payout ratio). The dividend has increased by an average of 35% per year over the past 6 years and payments have been stable during that time. EPS is expected to grow by 22% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 20
Second quarter 2026 earnings: EPS in line with expectations, revenues disappoint Second quarter 2026 results: EPS: ر.س1.17 (up from ر.س1.08 in 2Q 2025). Revenue: ر.س5.08b (up 5.2% from 2Q 2025). Net income: ر.س901.1m (up 8.6% from 2Q 2025). Profit margin: 18% (in line with 2Q 2025). Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 01
First quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2026 results: EPS: ر.س1.15 (up from ر.س1.00 in 1Q 2025). Revenue: ر.س5.04b (up 5.5% from 1Q 2025). Net income: ر.س879.7m (up 15% from 1Q 2025). Profit margin: 18% (up from 16% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) exceeded analyst estimates by 8.7%. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • Apr 29
Etihad Etisalat Company, Annual General Meeting, May 21, 2026 Etihad Etisalat Company, Annual General Meeting, May 21, 2026, at 19:00 Arab Standard Time. Location: riyadh Saudi Arabia Reported Earnings • Feb 24
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: ر.س4.51 (up from ر.س4.04 in FY 2024). Revenue: ر.س19.6b (up 7.9% from FY 2024). Net income: ر.س3.47b (up 12% from FY 2024). Profit margin: 18% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.4%. Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Feb 19
Upcoming dividend of ر.س1.60 per share Eligible shareholders must have bought the stock before 25 February 2026. Payment date: 09 March 2026. Payout ratio is a comfortable 55% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of Saudi dividend payers (5.8%). In line with average of industry peers (3.5%). Declared Dividend • Feb 18
Dividend of ر.س1.30 announced Dividend of ر.س1.30 is the same as last year. Ex-date: 10th March 2026 Payment date: 9th March 2026 Dividend yield will be 3.6%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (55% earnings payout ratio) and cash flows (53% cash payout ratio). The dividend has increased by an average of 38% per year over the past 5 years and payments have been stable during that time. EPS is expected to grow by 26% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Feb 04
Now 21% undervalued Over the last 90 days, the stock has risen 4.9% to ر.س68.25. The fair value is estimated to be ر.س86.81, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has grown by 29%. For the next 3 years, revenue is forecast to grow by 5.2% per annum. Earnings are also forecast to grow by 7.1% per annum over the same time period. Reported Earnings • Oct 28
Third quarter 2025 earnings released: EPS: ر.س1.19 (vs ر.س1.08 in 3Q 2024) Third quarter 2025 results: EPS: ر.س1.19 (up from ر.س1.08 in 3Q 2024). Revenue: ر.س4.85b (up 7.8% from 3Q 2024). Net income: ر.س916.4m (up 11% from 3Q 2024). Profit margin: 19% (in line with 3Q 2024). Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 29
Second quarter 2025 earnings: EPS exceeds analyst expectations Second quarter 2025 results: EPS: ر.س1.08 (up from ر.س0.86 in 2Q 2024). Revenue: ر.س4.83b (up 8.1% from 2Q 2024). Net income: ر.س829.9m (up 26% from 2Q 2024). Profit margin: 17% (up from 15% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Jul 28
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.9% to ر.س58.95. The fair value is estimated to be ر.س74.07, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last 3 years. Earnings per share has grown by 33%. For the next 3 years, revenue is forecast to grow by 5.4% per annum. Earnings are also forecast to grow by 5.9% per annum over the same time period. Upcoming Dividend • Jul 27
Upcoming dividend of ر.س1.20 per share Eligible shareholders must have bought the stock before 03 August 2025. Payment date: 19 August 2025. Payout ratio is a comfortable 52% and this is well supported by cash flows. Trailing yield: 4.3%. Lower than top quartile of Saudi dividend payers (5.3%). Higher than average of industry peers (3.5%). Buy Or Sell Opportunity • Jul 01
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.2% to ر.س59.05. The fair value is estimated to be ر.س74.07, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last 3 years. Earnings per share has grown by 33%. For the next 3 years, revenue is forecast to grow by 5.4% per annum. Earnings are also forecast to grow by 6.6% per annum over the same time period. Announcement • May 02
Etihad Etisalat Company, Annual General Meeting, May 22, 2025 Etihad Etisalat Company, Annual General Meeting, May 22, 2025, at 19:00 Arab Standard Time. Location: riyadh Saudi Arabia Reported Earnings • Apr 29
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: ر.س1.00 (up from ر.س0.83 in 1Q 2024). Revenue: ر.س4.78b (up 5.1% from 1Q 2024). Net income: ر.س766.7m (up 20% from 1Q 2024). Profit margin: 16% (up from 14% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 3.0%. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Apr 06
Now 21% undervalued Over the last 90 days, the stock has risen 3.4% to ر.س54.60. The fair value is estimated to be ر.س68.96, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.9% over the last 3 years. Earnings per share has grown by 34%. For the next 3 years, revenue is forecast to grow by 5.2% per annum. Earnings are also forecast to grow by 6.2% per annum over the same time period. Upcoming Dividend • Mar 16
Upcoming dividend of ر.س1.30 per share Eligible shareholders must have bought the stock before 23 March 2025. Payment date: 09 April 2025. Payout ratio is on the higher end at 98%, however this is supported by cash flows. Trailing yield: 4.3%. Lower than top quartile of Saudi dividend payers (4.9%). Higher than average of industry peers (3.6%). Reported Earnings • Feb 26
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: ر.س4.03 (up from ر.س2.90 in FY 2023). Revenue: ر.س18.2b (up 8.6% from FY 2023). Net income: ر.س3.11b (up 39% from FY 2023). Profit margin: 17% (up from 13% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 10%. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Nov 13
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from ر.س3.05 to ر.س3.39. Revenue forecast steady at ر.س18.0b. Net income forecast to shrink 1.1% next year vs 14% growth forecast for Wireless Telecom industry in Saudi Arabia . Consensus price target of ر.س60.43 unchanged from last update. Share price was steady at ر.س51.90 over the past week. Reported Earnings • Nov 05
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: ر.س1.08 (up from ر.س0.68 in 3Q 2023). Revenue: ر.س4.50b (up 9.7% from 3Q 2023). Net income: ر.س828.5m (up 58% from 3Q 2023). Profit margin: 18% (up from 13% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 20%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 29
Second quarter 2024 earnings released: EPS: ر.س0.86 (vs ر.س0.65 in 2Q 2023) Second quarter 2024 results: EPS: ر.س0.86 (up from ر.س0.65 in 2Q 2023). Revenue: ر.س4.47b (up 5.1% from 2Q 2023). Net income: ر.س661.1m (up 33% from 2Q 2023). Profit margin: 15% (up from 12% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Jun 08
Etihad Etisalat Company, Annual General Meeting, Jun 27, 2024 Etihad Etisalat Company, Annual General Meeting, Jun 27, 2024, at 19:40 Arab Standard Time. Location: riyadh Saudi Arabia Announcement • May 29
Etihad Etisalat Appoints Hisham Hendi as Chief Consumer Marketing and Sales Officer Etihad Etisalat (Mobily) appointed Hisham Hendi as its Chief Consumer Marketing and Sales Officer. Through this strategic hire, Mobily will see Hendi spearheading its commercial strategy. Hendi brings to the role in-depth expertise in commercial transformation, building team capacities, understanding the market dynamics from customer and competitor perspectives, and delivering strong differentiation, while working closely with partners to enhance consumer experiences. Previously, Hendi has led Vodafone and Vodacom in several leadership roles for more than 20 years, including as the Consumer Business Unit Director at Vodafone España, CEO of Vodafone Tanzania, Head of Consumer Marketing at Vodafone Egypt, and Chief Commercial Officer for International Markets – Vodafone in South Africa. He is also the Non-Executive Board Director at Banque du Caire. As the CEO of Vodafone Tanzania, Hendi grew the customer base, ensured enhanced market and revenue share by leading a high-performance team, innovative Mobile Money services, and brand differentiation. During his tenure in Spain, Hendi drove business transformation by automating customer value management and through robust digital-first initiatives across all digital channels and differentiated fixed mobile convergence propositions. Hendi’s appointment comes at the perfect time as Mobily continues to expand its influence and innovate within the telecom sector. His extensive experience and proven track record in driving commercial success make him ideally suited to lead Mobily’s strategic initiatives. Reported Earnings • May 17
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: ر.س0.83 (up from ر.س0.60 in 1Q 2023). Revenue: ر.س4.55b (up 12% from 1Q 2023). Net income: ر.س637.8m (up 37% from 1Q 2023). Profit margin: 14% (up from 11% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.8%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 05
Full year 2023 earnings released: EPS: ر.س2.90 (vs ر.س2.15 in FY 2022) Full year 2023 results: EPS: ر.س2.90 (up from ر.س2.15 in FY 2022). Revenue: ر.س16.8b (up 7.0% from FY 2022). Net income: ر.س2.23b (up 35% from FY 2022). Profit margin: 13% (up from 11% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Announcement • Dec 29
UAEs e& Will Not Be Raising Stake in Saudi Telco Mobily to 50% Plus The UAE tech-telecom company e& (Emirates Telecommunications Group Company PJSC) (ADX:EAND) will not pursue its plans to raise its shareholding in its Saudi subsidiary Mobily (Etihad Etisalat Company). It was early last year that e& confirmed moves to take its shareholding in Mobily to 50% plus 1 share from the existing 27.99%. As a telco, Mobily has a 40% share of the lucrative Saudi marketplace and holding its own against stc (Saudi Telecom Co.). (Mobily went operational in 2005.). If the deal had gone ahead, it would have bought the additional Mobily stake at SR47, according to reports at the time. That plan has now been put on the backburner. The other major shareholder in Mobily is Saudi Arabias General Organization for Social Insurance. “Emirates Telecommunications Group Co e& has terminated discussions regarding a possible increase in its shareholding in Mobily," the UAE company said. “Following a period of engagement, a way forward to conclude the potential transaction could not be determined. Hence, e& has now decided not to pursue the financial transaction". Reported Earnings • Oct 26
Third quarter 2023 earnings: EPS exceeds analyst expectations Third quarter 2023 results: EPS: ر.س0.68 (up from ر.س0.48 in 3Q 2022). Revenue: ر.س4.10b (up 7.1% from 3Q 2022). Net income: ر.س523.8m (up 41% from 3Q 2022). Profit margin: 13% (up from 9.7% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 20%. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 15
Consensus EPS estimates increase by 24% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from ر.س1.93 to ر.س2.39. Revenue forecast steady at ر.س16.5b. Net income forecast to shrink 10% next year vs 7.3% growth forecast for Wireless Telecom industry in Saudi Arabia . Consensus price target broadly unchanged at ر.س50.18. Share price was steady at ر.س45.35 over the past week. Reported Earnings • Aug 03
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: ر.س0.65 (up from ر.س0.47 in 2Q 2022). Revenue: ر.س4.25b (up 9.0% from 2Q 2022). Net income: ر.س497.3m (up 38% from 2Q 2022). Profit margin: 12% (up from 9.2% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) also surpassed analyst estimates by 9.6%. Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jun 01
Consensus EPS estimates increase by 13% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from ر.س2.15 to ر.س2.43. Revenue forecast steady at ر.س16.5b. Net income forecast to grow 5.5% next year vs 7.1% growth forecast for Wireless Telecom industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س47.71. Share price was steady at ر.س42.80 over the past week. Reported Earnings • May 17
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: ر.س0.60 (up from ر.س0.41 in 1Q 2022). Revenue: ر.س4.05b (up 6.3% from 1Q 2022). Net income: ر.س464.9m (up 46% from 1Q 2022). Profit margin: 12% (up from 8.4% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 17%. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Feb 23
Now 20% undervalued Over the last 90 days, the stock is up 3.7%. The fair value is estimated to be ر.س45.81, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.8% over the last 3 years. Earnings per share has grown by 64%. For the next 3 years, revenue is forecast to grow by 3.5% per annum. Earnings is also forecast to grow by 9.9% per annum over the same time period. Board Change • Nov 16
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Chairman Nabeel Al-Amudi was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 25
Third quarter 2022 earnings released: EPS: ر.س0.48 (vs ر.س0.36 in 3Q 2021) Third quarter 2022 results: EPS: ر.س0.48 (up from ر.س0.36 in 3Q 2021). Revenue: ر.س3.83b (up 6.1% from 3Q 2021). Net income: ر.س372.5m (up 33% from 3Q 2021). Profit margin: 9.7% (up from 7.8% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Wireless Telecom industry in Asia. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 04
Second quarter 2022 earnings: EPS misses analyst expectations Second quarter 2022 results: EPS: ر.س0.47 (up from ر.س0.32 in 2Q 2021). Revenue: ر.س3.90b (up 4.6% from 2Q 2021). Net income: ر.س359.5m (up 48% from 2Q 2021). Profit margin: 9.2% (up from 6.5% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 4.6%, compared to a 5.5% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • May 25
Etihad Etisalat Company Approves to Distribute Cash Dividends to the Shareholders for the Fiscal Year Ending 31 December 2021 from June 9, 2022 Etihad Etisalat Company at its AGM held on May 23, 2022, approved to distribute cash dividends to the shareholders for the fiscal year ending 31 December 2021 in the amount of SAR 654,500,000 at SAR 0.85 per share, representing (8.5%) of the nominal value per share. The eligibility of cash dividends will be to shareholders who own the company shares by the end of the trading day of the General Assembly of the company and enrolled in the Company's registry at Securities Depository Center Company (Edaa) by the end of the second trading day following the eligibility date. The distribution of dividend will start from June 9, 2022. Price Target Changed • Apr 27
Price target increased to ر.س41.74 Up from ر.س38.90, the current price target is an average from 9 analysts. New target price is approximately in line with last closing price of ر.س42.00. Stock is up 39% over the past year. The company is forecast to post earnings per share of ر.س1.67 for next year compared to ر.س1.39 last year. Reported Earnings • Apr 27
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: ر.س0.41 (up from ر.س0.29 in 1Q 2021). Revenue: ر.س3.81b (up 5.8% from 1Q 2021). Net income: ر.س319.0m (up 41% from 1Q 2021). Profit margin: 8.4% (up from 6.3% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 8.9%. Over the next year, revenue is forecast to grow 5.4%, compared to a 6.2% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Chairman Nabeel Al-Amudi was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Mar 16
Investor sentiment improved over the past week After last week's 16% share price gain to ر.س42.25, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 18x in the Wireless Telecom industry in Asia. Total returns to shareholders of 90% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ر.س43.78 per share. Major Estimate Revision • Mar 05
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from ر.س1.45 to ر.س1.60. Revenue forecast steady at ر.س15.5b. Net income forecast to grow 15% next year vs 4.2% growth forecast for Wireless Telecom industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س38.02. Share price fell 2.2% to ر.س34.00 over the past week. Price Target Changed • Mar 04
Price target increased to ر.س38.02 Up from ر.س35.47, the current price target is an average from 6 analysts. New target price is 12% above last closing price of ر.س34.00. Stock is up 20% over the past year. The company is forecast to post earnings per share of ر.س1.45 for next year compared to ر.س1.39 last year. Reported Earnings • Feb 24
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: ر.س1.39 (up from ر.س1.02 in FY 2020). Revenue: ر.س14.8b (up 5.6% from FY 2020). Net income: ر.س1.07b (up 37% from FY 2020). Profit margin: 7.2% (up from 5.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 3.8%, compared to a 5.3% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Feb 24
Now 21% undervalued Over the last 90 days, the stock is up 8.5%. The fair value is estimated to be ر.س43.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.1% per annum over the last 3 years. The company has become profitable over the last 3 years. Board Change • Feb 02
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non - Executive Director Hatem Mohamed Dowidar was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Executive Departure • Dec 02
Independent Director Mutaz Al Azawi has left the company On the 28th of November, Mutaz Al Azawi's tenure as Independent Director ended after 3.0 years in the role. As of September 2021, Mutaz still personally held only 500.00 shares (ر.س16k worth at the time). A total of 5 executives have left over the last 12 months. The current median tenure of the management team is 2.63 years. Executive Departure • Dec 02
Independent Vice-Chairman of the Board Abdullah Bin Mohammed Al-Issa has left the company On the 28th of November, Abdullah Bin Mohammed Al-Issa's tenure as Independent Vice-Chairman of the Board ended after 4.0 years in the role. As of September 2021, Abdullah Bin Mohammed still personally held 34.60k shares (ر.س1.1m worth at the time). A total of 5 executives have left over the last 12 months. The current median tenure of the management team is 2.54 years. Executive Departure • Dec 02
Non - Executive Director Hussein Alasmari has left the company On the 28th of November, Hussein Alasmari's tenure as Non - Executive Director ended after 3.0 years in the role. We don't have any record of a personal shareholding under Hussein's name. A total of 5 executives have left over the last 12 months. The current median tenure of the management team is 2.54 years. Executive Departure • Dec 02
Non-Executive Director Serkan Okandan has left the company On the 28th of November, Serkan Okandan's tenure as Non-Executive Director ended. We don't have any record of a personal shareholding under Serkan's name. A total of 5 executives have left over the last 12 months. The current median tenure of the management team is 2.54 years. Executive Departure • Dec 02
Non-Executive Director Saleh Al Abdooli has left the company On the 28th of November, Saleh Al Abdooli's tenure as Non-Executive Director ended after 5.7 years in the role. We don't have any record of a personal shareholding under Saleh's name. A total of 5 executives have left over the last 12 months. The current median tenure of the management team is 2.54 years. Price Target Changed • Nov 22
Price target increased to ر.س34.76 Up from ر.س32.05, the current price target is an average from 8 analysts. New target price is 11% above last closing price of ر.س31.35. Stock is up 7.4% over the past year. The company is forecast to post earnings per share of ر.س1.27 for next year compared to ر.س1.02 last year. Reported Earnings • Oct 22
Third quarter 2021 earnings released: EPS ر.س0.36 (vs ر.س0.29 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ر.س3.61b (up 7.5% from 3Q 2020). Net income: ر.س281.1m (up 27% from 3Q 2020). Profit margin: 7.8% (up from 6.6% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Board Change • Oct 11
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Mutaz Al Azawi was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Jul 27
Second quarter 2021 earnings released: EPS ر.س0.32 (vs ر.س0.24 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ر.س3.73b (up 4.8% from 2Q 2020). Net income: ر.س243.8m (up 32% from 2Q 2020). Profit margin: 6.5% (up from 5.2% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 117% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Announcement • May 21
Etihad Etisalat Company Proposes Dividend for the Fiscal Year Ending 31 December 2020 Etihad Etisalat Company at its Ordinary General Assembly Meeting to be held on May 23, 2021 the company announced to distribute cash dividends to the shareholders for the fiscal year ending 31 December 2020 amounting to (SAR 385,000,000) at (SAR 0.5) per share representing (5%) of the nominal value per share. The eligibility of Cash dividend will be to shareholders who own the company shares by the end of the trading day of the General Assembly of the company and enrolled in the Company's registry at Securities Depository Center Company (Edaa) by the end of the second trading day following the eligibility date. Distribution date will be announced later. Reported Earnings • Apr 21
First quarter 2021 earnings released: EPS ر.س0.29 (vs ر.س0.17 in 1Q 2020) The company reported a solid first quarter result with improved earnings and profit margins, although revenues were flat. First quarter 2021 results: Revenue: ر.س3.61b (flat on 1Q 2020). Net income: ر.س225.9m (up 73% from 1Q 2020). Profit margin: 6.3% (up from 3.6% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 125% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Feb 23
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.7%. Earnings per share (EPS) exceeded analyst estimates by 11%. Over the next year, revenue is forecast to grow 7.0% while theWireless Telecom industry in Saudi Arabia is not expected to grow. Reported Earnings • Feb 23
Full year 2020 earnings released: EPS ر.س1.02 (vs ر.س0.04 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ر.س14.0b (up 4.4% from FY 2019). Net income: ر.س783.3m (up ر.س752.1m from FY 2019). Profit margin: 5.6% (up from 0.2% in FY 2019). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 126% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 04
New 90-day low: ر.س27.90 The company is down 1.0% from its price of ر.س28.25 on 05 November 2020. The Saudi market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Wireless Telecom industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ر.س39.21 per share. Announcement • Jan 22
Nokia and Mobily Pilot World’s First 4G and 5G Fixed Wireless Access Network Slicing Nokia announced that it has successfully piloted 4G and 5G fixed wireless access (FWA) network slicing with Mobily on their live commercial network – the first sliced FWA deployment in the world. The ongoing pilot, which took place in the capital city of Riyadh, occurred in a multi-vendor environment and included sliced access, transport and core networks with management and assurance capabilities. The solution will allow Mobily to offer new FWA services to priority consumer and enterprise customers. It also enables slicing per application including voice, data, online gaming or home office applications.
Nokia’s 4G/5G network slicing solution works in LTE, 5G non-standalone (NSA) and 5G standalone (SA) networks. It provides mobile broadband connectivity from 4G/5G devices and Customer Premises Equipment (CPE) to cloud applications through sliced access, transport and core. With the Nokia slicing solution Mobily can divide its network into multiple virtual networks and offer FWA service tiers and premium services to its customers utilizing advanced network resource allocation mechanisms. During the pilot, Mobily utilized Nokia’s AirScale 4G/5G base stations with its NetAct solution with management, control and assurance, as well as Nokia’s routers, Network Services Platform (NSP) and Digital Operations software. Mobily also used existing third-party core as well as Nokia’s FastMile 4G/5G FWA gateway and third-party CPE products. The slicing capabilities are implemented with software upgrades and configurations into Mobily’s existing network.
Nokia’s slicing solution supports existing LTE, 5G NSA and 5G SA devices. The slice continuity between LTE and 5G allows operators to maximally utilize their network coverage and assets such as available spectrum for new mobile services. Nokia’s customers are already working on a variety of slicing use cases including enterprise applications, transportation, manufacturing, utilities, public safety and smart city applications. Mobily is the brand name of the Saudi Mobily Company, a Saudi Arabian telecommunications services company that offers fixed-line, mobile telephony and Internet services. Nokia was the first vendor to launch 4G and 5G network slicing and has developed the solution further with slice management automation, orchestration and assurance capabilities. With the same solution, architecture operators can now turn on slicing services for Fixed Wireless Access users. Price Target Changed • Dec 24
Price target raised to ر.س28.49 Up from ر.س26.15, the current price target is an average from 9 analysts. The new target price is close to the current share price of ر.س29.20. As of last close, the stock is up 17% over the past year. Major Estimate Revision • Dec 01
Analysts update estimates The 2020 consensus earning per share (EPS) estimate was lowered from ر.س0.95 to ر.س0.83. Revenue estimate was approximately flat at ر.س14.3b. Net income is expected to grow by 94% next year compared to 3.3% growth forecast for the Wireless Telecom industry in Saudi Arabia. The consensus price target was lowered from ر.س26.93 to ر.س26.15. Share price is up 1.0% to ر.س29.90 over the past week.