Saudi Arabia’s bourse watchdog, the Capital Market Authority (CMA), has launched an investigation into domestic wireless operator Etihad Etisalat (Mobily) after the company restated its earnings for an 18 month period, Reuters reports. ‘The regulator has started investigations to determine any violations by the company towards the bourse rules,’ the CMA was cited as stating, adding that trading in Mobily’s shares would resume on 6 November 2014.
As previously noted by CommsUpdate, the cellco was expected to report its 3Q 2014 earnings last week, but requested for its shares to be suspended, as it sought more time to review unspecified ‘significant matters’ in its accounts. Mobily yesterday reported a 71.08% slump in net profit to SAR472 million (USD125.81 million), down from SAR1.632 billion in the corresponding period of 2013. Mobily also disclosed that following an ‘accounting error’ which involved a change in the timing of revenue recognition in respect to a promotional programme, net income for previous quarters has had to be restated; net income for the first quarter of 2014 (ended 31 March 2014) was restated from SAR1.400 billion to SAR1.612 billion, while net income for Q2 2014 dropped to SAR412 million, down from SAR1.312 billion previously.