Saudi Telecom Co. — Earnings Release 2016

Feb 18, 2016

Saudi Telecom Co. announces the consolidated financial results for the period ending at 31-12-2015.

7010 · 18/02/2016 15:46:01 · Announcement #41245 · View on Saudi Exchange

Saudi Telecom Co. announces the consolidated financial results for the period ending at 31-12-2015.

Element	Current year	Previous year	% Change
Net profit (loss)	9,258	10,959	-15.52
Earning or loss per share, Riyals	4.63	5.48	-
Gross profit (loss)	30,345	28,156	7.77
Operational profit (loss)	11,859	11,632	1.95

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

Element	EXPLAINATION
Reasons of annual financial results	The net profit for 2015 decreased by SR 1,701m compared to the previous year, mainly due to the following: 1. The SR 2,636m increase in cost of services, and the SR 1,961m increase in operating expenses during 2015 compared to the previous year, as a result to the SR 4,825m increase in revenue during 2015 compared to last year. 2. The SR 1,905m decrease in (Other income and expenses, net) during 2015 compared to last year, mainly due to the following: a. The booking of SR 406m related to the early retirement program during 2015 , which did not exist last year. b. The SR 118m increase in (Losses from investments accounted for under equity method) during 2015 compared to last year, and this is attributed mainly to the significant depreciation of the Turkish Lira against the US Dollar during 2015 compared last year. c. The SR 57m increase in commissions compared to last year. d. The SR 1,435m decrease in (Other income and expenses; other, net) compared to last year, and the main reason is attributed to the following: - The SR 111m decrease in Miscellaneous revenue compared to last year. - The booking of SR 360m (losses on sale/disposal of property, plant and equipment) during 2015 compared to gains of SR 403m for last year. These gains booked during 2014 includes among other items an amount of SR 595m gains resulting from the compensation for the company's land and buildings erected thereon which is located in Al Faisaliah area in Riyadh (as announced previously). - The SR 560m increase in Miscellaneous expenses during 2015 compared to last year, which includes an amount of SR 395m two-months' salary expenses (one-off) booked during the 1st quarter of 2015, which was made as a gesture to follow the initiative of the Honorable Royal Decree (as previously announced). 3. The SR 78m decrease in the provision for Zakat & Tax during 2015 compared to the same period last year.
Reclassifications in annual financial results	Certain comparatives figures for the year ending at 31 December 2014 have been reclassified to conform with the presentation used for the year ending at 31 December 2015.

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.