Saudi’s Mobily to reissue 2014, Q1 2015 results after regulator probe
Mobily said it would reissue its financial statements for the year 2014 and the first quarter of 2015 before releasing its second-quarter results
Saudi Arabia’s Etihad Etisalat (Mobily) said on Sunday that accounting changes would increase its 2014 loss by about 830 million riyals ($221 million) to 1.745 billion riyals.
The company made the statement after a team appointed by the Capital Market Authority identified concerns over Mobily’s contracts with customers, including those for fibre networks. The team recommended that the company reconsider its accounting approach for the contracts.
Mobily said it would reissue its financial statements for the year 2014 and the first quarter of 2015 before releasing its second-quarter results.
It said that 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, leading to 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, the company added without elaborating.
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