Etihad GO Telecom Co. — Earnings Release 2020

Jun 28, 2020

Etihad Atheeb Telecommunication Co. (GO) announces its Annual Financial Results for the Period Ending on 31-03-2020

7040 · 28/06/2020 15:53:16 · Announcement #59518 · View on Saudi Exchange

Etihad Atheeb Telecommunication Co. (GO) announces its Annual Financial Results for the Period Ending on 31-03-2020

Element List	Current Year	Previous Year	%Change
Sales/Revenue	339.6	421.09	-19.352
Gross Profit (Loss)	187.62	135.39	38.577
Operational Profit (Loss)	-50.61	-38.43	31.693
Net Profit (Loss) after Zakat and Tax	-71.61	-53.29	34.377
Total Comprehensive Income	-71.5	-52.22	36.92
Total Share Holders Equity (after Deducting Minority Equity)	150.74	222.24	-32.172
Profit (Loss) per Share	-3.13	-2.33
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
Increase (Decrease) in Net Profit for Current Year Compared to Last Year is Attributed to	The increase in net loss is due to decrease in revenue and other income, and increase in the depreciation expense, and financial charges. In spite of decrease in the cost of services, general & administration expenses, and selling & marketing expenses.
Basis of the External Auditor's Opinion	Disclaimer of opinion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion	Attched
Reclassification of Comparison Items	The financial statements of the current year have been prepared in accordance with the International Financial Reporting Standards adopted in Kingdom of Saudi Arabia and Other accredited by the Saudi Organization for Certified Public Accountants. The financial statements for the comparative year have been represented, reclassified and categorized in accordance with the accounting policies applied in the presentation, classification and classification of the financial statements for the current year.
Additional Information	Shareholders’ Equity

The accumulated losses of SAR 77.79 million as of 31 March 2020 represents 34.04%of the Company’s share capital.

The Board of Directors of the Company recommended to reduce the Company’s share capital by SAR 121.97 million, in their meeting held on 27 March 2019, in order to comply with Article 150 and 224 of the new Companies’ Regulation. The aforesaid reduction has been approved in the extra ordinary general meeting of shareholders held on 24 April 2019. Accordingly, the Company’s share capital has been reduced to SAR 350.53 million and the accumulated losses reduced below 50% of the share capital.

Subsequent to 31 December 2019, the Board of Directors decided on January 22, 2020 to recommend to the Extra-ordinary General Assembly to reduce the Company’s capital from SAR 350,529,000 to SAR 228,529,000, thereby reducing the number of Company’s shares from 35,052,900 shares to 22,852,900 shares by cancelling 12,200,000 shares. This represents a reduction of SAR 122 million to absorb the accumulated losses, which exceeded 50% of the capital. The aforesaid reduction has been approved by shareholders in the extra ordinary general assembly meeting held on 27 February 2020.

In this regard the company will apply the Procedures and Instructions related to listed Companies with accumulated losses reaching 20% or more of their share capital. Issued by the Board of the Capital Market Authority Resolution number 4-48-2013 Dated 15/1/1435H Corresponding to 18/11/2013G and amended by CMA Board Resolution number 1-77-2018 Dated 5/11/1439H Corresponding to 18/7/2018G.

The Company applies, for the first time, IFRS 16 “Leases”. As required by IAS 34, the nature and effect of these changes as follows:

Depreciation expense increased by SAR 50.5 million relating to the depreciation of right of use assets recognized.

Rent expense decreased by SAR 30.4 million relating to previous operating leases.

Finance costs increased by SAR 13.4 million relating to the interest expense on additional lease liabilities recognized.

Amortisation of deferred gain (Other income) decreased by SAR 9.6 million Attached Documents  

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.