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SAR 0.40 Per Share: Mobily Approves 2026 Interim Dividend
Mobily shareholders approved SAR 0.40 per share H1 2026 dividend, total SAR 1.2 billion. The two-year plan signals free cash flow confidence amid capex. Board confirmation of H2 payout is the next catalyst.
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Shareholders of Etihad Etisalat (Mobily) approved an interim dividend distribution plan for fiscal year 2026 at a general assembly meeting. The approval covers a dividend of SAR 0.40 per share for the first half of the year, payable after the company's board reviews the semi-annual financial statements. A second interim dividend of the same amount is planned for the second half, subject to board confirmation. The total payout under the plan is SAR 1,217 million.
The decision is a signal on capital allocation from one of Saudi Arabia's three mobile network operators. Mobily, whose largest shareholder is the UAE's Etisalat (now e&), competes with stc and Zain KSA in a market where subscriber growth is moderating. The focus has shifted to 5G enterprise services, fixed broadband, and fintech adjacencies. A declared dividend plan two years in advance is relatively uncommon in the region. It gives income-focused investors a visible floor for cash returns, provided earnings and the competitive landscape hold.
The 2026 Payout Structure and What It Signals
The two-year forward plan removes uncertainty around capital returns for a period that covers at least two full capital-expenditure cycles. Mobily has been investing in fiber-to-the-home expansion and B2B 5G slicing, both of which require upfront cash that could otherwise compete with shareholder distributions. By locking in a 2026 plan now, management is signaling that it expects free cash flow generation to remain sufficient to cover both the capex pipeline and the dividend.
Mobily's business has shifted away from purely price competition on consumer voice and data plans. The operator's focus on enterprise solutions, such as private 5G networks for industrial clients, and digital payments through its subsidiary, provides a higher-margin revenue base that is less correlated with subscriber net-adds. The dividend approval suggests this strategy is producing predictable cash flows.
A key risk to watch is the competitive intensity in Saudi telecoms. Stc has launched aggressive fiber promotions, and Zain KSA is accelerating its own 5G rollout. If pricing pressure intensifies, Mobily's EBITDA margin could compress, making the dividend coverage tighter than the plan assumes.