Etihad Atheeb Telecommunication Co. (GO) announces the interim financial results for the period ending on 30-06-2017 (Three Months)
| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) | 55.42 | -58.11 | - | -22.02 | - |
| Gross profit (loss) | 25.08 | 8.84 | 183.71 | 31.1 | -19.36 |
| Operational profit (loss) | 61.02 | -54.85 | - | -46.85 | - |
| Earning or loss per share, Riyals | 0.88 | -0.92 | - | - | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The reasons for the Net Profit of SAR 55.42 million during Q1 June 2017 compared to a Net Loss of SAR (58.11) million in Q1 June 2016 mainly due to:- Increase in Internet, Data and voice revenue by SAR 46 million.- Increase in Other Income by SAR 98 million, mainly due to the sale of the 500 towers. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The reasons for the Net profit of SAR 55.42 million during Q1 June 2017 compared to a Net loss of SAR (22.02) million compared with the previous quarter Q4 March 2017 mainly due to:- Increase in Internet and wholesale revenue by SAR 6.9 million.- Increase in Other Income by SAR 98 million, mainly due to the sale of the 500 towers. |
| External auditor's report containing reservation | We have reviewed the accompanying 30 June 2017 condensed interim financial statements of Etihad Atheeb Telecommunication Company (the Company), which comprises:- the condensed interim statement of financial position as at 30 June 2017;- the condensed interim statement of comprehensive income for the three-month period ended 30 June 2017;- the condensed interim statement of changes in equity for the three-month period ended 30 June 2017;- the condensed interim statement of cash flows for the three-month period ended 30 June 2017; and- the notes to the condensed interim financial statements.Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with IAS 34, Interim Financial Reporting that is endorsed in the Kingdom of Saudi Arabia. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.Scope of reviewWe conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity that is endorsed in the Kingdom of Saudi Arabia. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia, and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.ConclusionBased on our review, nothing has come to our attention that causes us to believe that the accompanying 30 June 2017 condensed interim financial statements of Etihad Atheeb Telecommunication Company (the Company) are not prepared, in all material respects, in accordance with IAS 34, Interim Financial Reporting that is endorsed in the Kingdom of Saudi Arabia.Emphasis of matterWe draw attention to Note 2(b) to the accompanying interim financial statements; as at 30 June 2017, the Companys current liabilities exceeded its current assets and the accumulated losses approximate to 40.31% of the Companys share capital. We have considered the adequacy of the disclosure made in note 2(b) to the financial statements concerning the Companys ability to continue as a going concern. These conditions indicate the existence of a material uncertainty, which may cast significant doubt about the companys ability to continue as a going concern. |
| Reclassifications in quarterly financial results | The interim condensed financial statements have been prepared in accordance with International Accounting Standard 34 (the Interim Financial Report) adopted in Saudi Arabia and other standards and publications approved by the Saudi Organization for Certified Public Accountants. These interim condensed financial statements are the first issued in accordance with International Financial Reporting Standards (IFRS) and IFRS 1 (apply the International Financial Reporting Standards for the first time).The interim condensed financial statements have been represented, reclassified and categorized in accordance with the accounting policies applied in the presentation, and classification of the interim condensed financial statements for the current period, which have been prepared in accordance with the International Financial Reporting Standards adopted in Saudi Arabia.The net impact of conversion to IFRS as of March 2017 increases the accumulated losses in the Equity by SAR 20.5 million, that comprise the following: derecognized pre operating expenses increased losses by SAR 27 million, decommissioning of fixed assets decreased losses by SAR (0.9) million, discounting of long term liabilities decreased losses by SAR (7.5) million, and defined benefit obligation increased losses by SAR 1.9 million. |
| Other notes | Quarter compared with the same period last year The company confirmed that the total revenues for this quarter ended June 30, 2017 reached SAR 136.02 million, with an increase of 51.2 % (SAR 46.04 million) compared with the same period of last year where the total revenues was SAR 90.0 million, This increase is due to increase in the consumer services (B2C) revenue by 181.5% (SAR 33.6 million), as well as the increase of Business to Business revenues (B2B) by 28.9 % (SAR 9.5 million) and increase in the interconnection revenue by 7.5% (SAR 2.9 million). Quarter compared to the previous quarter current year The company confirmed that the total revenues for the first quarter ended June, 30, 2017 reached SAR 136.02 million, with an increase of 5.4% (SAR 6.9 million) compared with the previous quarter of the current year where the total revenues was SAR 129.1 million is due to increase in the consumer services (B2C) revenue by 5.1% (SAR 2.5 million) and increase in the interconnection revenue by 19.4% (SAR 6.7 million), in spite of the decrease in the Business to Business revenues (B2B) by 5.1 % (SAR 2.3 million). Other Income There is a gain on disposal of property and equipment of SAR 97.9 million as a result of the sale of 500 towers by SAR 230 million. The net book value of the towers is SAR 42.1 million and the net gain is SAR 187.9 million (SAR 97.9 million recognized in this quarter and SAR 90 million deferred over 7 years. Shareholders Equity The total Equity (No minority interest) decreased by 15.7% (SAR 69.9 million) that reached SAR 376 million compared to the opening balance as of 1 April 2016 of SAR 445.9 million. The total Equity in this quarter increased by 17.3% (SAR 55.4 million) compared with the previous fourth quarter of the last year as of 31 March 2017. The accumulated losses amounting to SAR 254 million as of 30 June 2017, which represents 40.31% of the company capital. Other comprehensive income There is no comprehensive income related to the Re-measurement gain on defined benefit obligation in this quarter and in the comparable quarter of last year. Earnings per share (EPS) Earnings (loss) per share is computed by dividing earnings (loss) attributable to the ordinary shareholders of the Company for the period ended 30 June 2017 and 30 June 2016, by the weighted average number of shares outstanding during the period ended 30 June 2017. The weighted average number of shares for the periods ended 30 June 2017 and 30 June 2016 have been arrived at by taking the effect of reduction in the share capital from the beginning of the earliest period presented (i.e. 1 April 2016), in order to comply with the requirements of IAS 33. Number of issued shares on 1 April 2016: 157,500,000 Number of shares cancelled: (94,500,000) Weighted average number of shares on 1 April 2016: 63,000,000 According to the Extraordinary General Assembly meeting approval of the capital reduction dated 10 April 2017. |
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