Etihad Etisalat Co. — Earnings Release 2015

Feb 21, 2016

Etihad Etisalat Co. announces the annual financial results for the period ending on 31-12-2015

7020 · 21/02/2016 08:20:31 · Announcement #41251 · View on Saudi Exchange

Etihad Etisalat Co. announces the annual financial results for the period ending on 31-12-2015

Element	Current year	Previous year	% Change
Net profit (loss)	-1,093	-1,576	30.65
Earning or loss per share, Riyals	-1.42	-2.05	-
Gross profit (loss)	7,958	6,779	17.39
Operational profit (loss)	-684	-1,350	49.33

*All figures are in (Millions) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	2015 net result amounted to a loss of SAR 1,093 million compared to a loss of SAR 1,576 million in 2014. This reduction of losses by 31% is mainly due to a significant improvement of the EBITDA that was slightly offset by an increase in Zakat expenses by SAR 128 million and an increase finance expenses by SAR 92 million. 2015 gross profit amounted to SAR 7,958 million compared to SAR 6,779 million in 2014, representing an increase of 17%, reflecting a decrease in the cost of services mainly due to lower interconnection costs. 2015 revenues amounted to SAR 14,424 million compared to SAR 14,004 million in 2014 representing an annual growth of 3%. 2015 EBITDA amounted to SAR 2,941 million compared to SAR 2,246 million in 2014. 2015 EBITDA margin is 20% compared to 16% in 2014.
External auditor's report containing reservation	We draw attention to note 2.1 to the accompanying consolidated financial statements, which describes the basis on which these consolidated financial statements have been prepared. During the year ended 31 December 2015, the Group has incurred operating losses of SR 0.7 billion (2014: SR 1.3 billion), and as at 31 December 2015, the Group net current liabilities amounted to SR 9.7 billion (31 December 2014: SR 17.3 billion) which indicate that the Group ability to meet its obligations as they become due depends on its ability to enhance its results of operations and its cash flows performance. As explained in note 12 to the consolidated financial statements, the Group in December 2015 during its discussion with the lenders reached to an agreement with its lenders to reset the financial covenants for certain long-term loans. The Group management is at an advanced stage of negotiations with the other lenders to obtain a reset of the financial covenant. Further as explained in note 2.1 to the consolidated financial statements, the Group based on its cash flows forecasts expects to continue to meet its obligations as they become due in the normal course of operation. Accordingly, the accompanying consolidated financial statements have been prepared under the going concern basis.
Reclassifications in annual financial results	Certain figures for the comparative period have been reclassified to conform to the current period presentation

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