Abu Dhabi – Mubasher: Emirates Telecommunications Corporation “Etisalat” announced on Sunday that the decision by Saudi unit Etihad Etisalat Co. (Mobily) to reissue its financial statements for the fiscal year 2013-2014 will negatively affect the UAE-based telecom’s profits.

This reissue will negatively impact Etisalat’s statements by around AED 616 million before royalty, the telecom operator said in a bourse filing on Sunday, adding that it is currently in talks with its external auditor in this matter.

“Mobily also increased provisions related to account receivables due from another operator, namely, Zain Saudi Arabia by SAR 800 million, recognised in Q2-15,” Etisalat highlighted, adding that this revision will negative affects it consolidated net profit for the quarter by AED 204 million.

Earlier today, Mobily said it will change the accounting for some of its contracts in response to a review by a team appointed by the Capital Market Authority (CMA).

The 2014 loss will rise to SAR 1.745 billion ($465 million), while the first-quarter loss will decline by SAR 207 million, resulting in a profit of SAR 8 million. Mobily has lost more than $9 billion of its market value since accounting errors were first reported.

Etisalat’s stock fell 1.43% to AED 13.8 on Sunday, on the backdrop of Mobily’s probe and announcement.