Saudi cellco Etihad Etisalat, which trades as Mobily (TASI:7020), today resumed trading on the local Tadawul stock exchange, the Capital Market Authority (CMA) announced.
Shares in the Etisalat subsidiary were suspended on 29 June, until the company…
Saudi cellco Etihad Etisalat, which trades as Mobily (TASI:7020), today resumed trading on the local Tadawul stock exchange, the Capital Market Authority (CMA) announced.
Shares in the Etisalat subsidiary were suspended on 29 June, until the company reissued restated consolidated financial statements for the 2014 financial year and restated consolidated financial statements for Q1 2015, and published the restated financial statements on Tadawul website.
Mobily completed these objectives on 30 July, restating a FY 2014 loss of SR1.58bn (US$421.33m), having originally reported this loss as SR913m (US$243.4m). According to its Q2 2015 results, the company posted a SR900.9m (US$240.2m) loss, having posted a SR92.5m (US$24.7m) profit for Q1. It also reduced its FY 2013 net profit from SR5.94bn (US$1.58bn) to SR4.69bn (US$1.25bn).
The company attributed the loss to the “booking of an additional doubtful debt provision for Zain KSA of SR800m (US$213m)”. See full accounting explanation here.
The CMA said it would announce the developments and results of its examination in due course. The share price has fallen 64% in the last year.
Last month, the company announced that it had appointed a new CEO and CFO in the wake of accounting regularities exposed last year.
New CEO Ahmad Farrouk becomes CEO, having stepped down as CEO of MTN South Africa. He replaces Khalid al Kaf.
Kais Ben Hamida, the new CFO, joins from Egyptian cellco Mobinil, where he had been CFO since 2011.
Etisalat Group has said that these reissued statements would negatively impact group statements by some AED616m (US$167.7m), while Mobily’s increased provisions related to account receivables due from another operator would reduce the group’s consolidated net profit in 2015 by AED204m (US$55.5m).
