Mobily’s losses soar by $221m

Etisalat said that the impact of earnings restatement would hit its own 2014 results
Account, Capital, Capital market authority, CEO, Errors, ETISALAT, Financial, Market, Mobily, Operators, Results, Saudi Arabia, Statement, Team, Telecommunications, Telecoms

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Mobily has stated that its accounting changes would raise its 2014 loss by about 830 million riyals ($221 million) to 1.745 billion riyals.

Etisalat said that the impact of earnings restatement by Mobily would hit its own 2014 results by 616 million dirhams ($167.7 million) before royalty.

The Saudi operator will republish its 2014 and first quarter 2015 financial statements. The team appointed by the Capital Market Authority identified concerns over Mobily's contracts with customers, including those for fibre networks. The team also recommended Mobily to reassess its accounting approach for the contracts. The company made the statement after this announcement.

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In addition to increasing its 2014 loss, the changes were expected to reduce the company's first-quarter 2015 loss by about 207 million riyals, resulting a profit of 8 million riyals for the quarter.

The board has decided to increase provisions related to "Zain account receivables" by 800 million riyals in the second quarter of 2015.

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