Mobily explains restated financial results; CMA to allow trading of its shares from 5 March

4 Mar 2015

Sulaiman Al-Gwaiz, chairman of Saudi Arabian operator Etihad Etisalat (Mobily), has said that the additional reported losses of SAR1.133 billion (USD302.14 million) for 2014 are primarily attributed to ‘precautionary measures’, which have been approved recently by the board of directors to mitigate medium- and long-term risks, the GulfBase reports. The executive revealed that the breakdown of the additional charge was as follows: SAR677 million recorded as an extra general and administrative expense in regards to provisions for existent short-term and long-term receivables, for running lawsuits and others; SAR194 million reduction in other income after the re-evaluation of an agreement with one of its network providers; SAR186 million recorded as cost of services and sales which are related to the amortisation of deferred costs of devices for customers based on additional information and revised estimates; and SAR76 million recorded reduction in revenue.

Further, the operator insisted that it could meet all of its debts, adding that ‘the company does not anticipate difficulties with respect to future financing repayments and costs’. Saudi Arabia’s Capital Market Authority (CMA) subsequently said it would permit trading in Mobily shares to resume on 5 March 2015. As previously announced by CommsUpdate, Mobily’s shares have been suspended for a week in response to the company’s financial troubles.

Saudi Arabia, Mobily (Etihad Etisalat)