Etihad Etisalat (Mobily), Saudi Arabia’s second largest mobile operator by subscribers, has announced its financial results for the twelve months ended 31 December 2015, reporting a net loss of SAR1.093 billion (USD2.93 million), a 30.6% improvement on the net loss of SAR1.576 billion reported in 2014. According to a press release on the Saudi Stock Exchange’s (Tadawul’s) website, the improvement was mainly attributed to ‘significant improvement in EBITDA which was slightly offset by an increase in Zakat expenses by SAR128 million and an increase in finance expenses by SAR92 million.’ In the period under review group revenues also increased, by 3% year-on-year to SAR14.424 billion, up from SAR14.004 billion reported in 2014. EBITDA for 2015 amounted to SAR2.941 billion, a 30.9% rise on an annualised basis, when compared to the SAR2.246 billion in 2014.
The group’s net current liabilities amounted to SAR9.7 billion at end-December 2015 (SAR17.3 billion in December 2014), with Mobily claiming that this indicated its ability to meet its obligations. On 29 December 2015 the management of the company reached an agreement with lenders to waive the breach of covenant under several facilities totalling SAR12.1 billion, which led to the reclassification of the outstanding amount of these facilities from current liabilities to non-current liabilities.