Etihad Atheeb Telecommunication Co. (GO) announces the interim financial results for the period ending on 30-09-2017 (Six Months)
| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) | -29.81 | 15.36 | - | 55.42 | - |
| Gross profit (loss) | 22.71 | 12.19 | 86.3 | 25.08 | -9.45 |
| Operational profit (loss) | -24.55 | 18.94 | - | 61.02 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) | 25.61 | -42.75 | - |
| Gross profit (loss) | 47.79 | 21.03 | 127.25 |
| Operational profit (loss) | 36.47 | -35.91 | - |
| Earning or loss per share, Riyals | 0.41 | -0.68 | - |
| 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 Loss of SAR (29.81) million during Q2 ended 30 September 2017 compared to a Net Profit of SAR 15.36 million in Q2 September 2016 mainly due to: Decrease in Other Income by SAR (62) million, due to the settlement recorded with the vendor in the similar quarter of previous year, Increase in cost of sales by SAR 29 million,. Increase in operating expenses by SAR 8.4 million. |
| Reasons of increase (decrease) for period compared with same period last year | The reason for the increase of net profit of SAR 25.61 million during the current period compared to a Net loss of SAR (42.75) million for the similar period of the previous year, mainly due to increase in operating revenue and increase in other income due to sales of towers. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The reasons for the Net Loss of SAR (29.81) million during Q2 ended 30 September 2017 compared to a Net profit of SAR 55.42 million compared with the previous quarter Q1 June 2017 mainly due to the decrease in Other Income by SAR (95) million, due to income against the sale of towers recorded in the previous quarter of current year. |
| External auditor's report containing reservation | We have reviewed the accompanying 30 September 2017 condensed interim financial statements of Etihad Atheeb Telecommunication Company (the Company), which comprises: the condensed interim statement of financial position as at 30 September 2017; the condensed interim statement of comprehensive income for the three and six month periods ended 30 September 2017; the condensed interim statement of changes in equity for the six months period ended 30 September 2017; the condensed interim statement of cash flows for the six months period ended 30 September 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 review We 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. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying 30 September 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 matter We draw attention to Note 2(b) to the accompanying condensed interim financial statements; as at 30 September 2017, the Companys current liabilities exceeded its current assets and the accumulated losses approximate to 45% of the Companys share capital. We have considered the adequacy of the disclosure made in note 2(b) to the condensed interim 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 condensed financial statements of the current period 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 interim condensed financial statements for the comparative period have been represented, reclassified and categorized in accordance with the accounting policies applied in the presentation, classification and classification of the interim condensed financial statements for the current period. |
| Other notes | Quarter compared with the same Quarter last year The company confirmed that the total revenues for this quarter ended Sep, 30, 2017 reached SAR 126.4 million, with an increase of 46.5 % (SAR 40.1 million) compared with the same period of last year where the total revenues ware SAR 86.3 million, This increase is due to increase in the consumer services (B2C) revenue by 98.8% (SAR 22.3 million), as well as the increase of Business to Business revenues (B2B) by 31.1 % (SAR 10.5 million) and increase in the interconnection revenue by 24.4% (SAR 7.3 million). The decrease in Other Income by SAR (61.6) million, due to income against settlement with a major vendor in same period last year. 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. Quarter compared to the previous quarter current year The company confirmed that the total revenues for the second quarter ended Sep, 30, 2017 reached SAR 126.4 million, with decrease of 7.1% (SAR 9.6 million) compared with the previous quarter of the current year where the total revenues ware SAR 136.02 million is due to decrease in the consumer services (B2C) revenue by 14.1% (SAR 7.4 million) and decrease in the interconnection revenue by 10.1% (SAR 4.2 million), in spite of the increase in the Business to Business revenues (B2B) by 4.5 % (SAR 1.9 million). The decrease in Other Income by SAR (95) million, due to income against the sale of towers recorded in previous quarter of same year. Period compared with the same period last year The company confirmed that the total revenues for the period of six months ended September 30, 2017 reached SAR 262.4 million, with an increase of 48.9% (SAR 86.1 million) compared with the same period of last year where the total revenues ware SAR 176.3 million, This increase is due to increase in the consumer services by 136.1% (SAR 55.9 million) as a result of growth of the new services with high speeds up to 200 Mbps using fiber optic (FTTH) and 4G technologies (LTE 4G) at competitive prices. As well as the increase of business to business revenues by 30% (SAR 20.1 million) as a result of increasing the number of corporate customers due to the new services and solutions that EATC is providing to their customers, and the increase in the interconnection revenue by 14.9% (SAR 10.2 million) as a result of increase in the local and international carriers traffic. The other income increased by SAR 43.4 million as a result of sale of towers and the increase in the marketing support fund. Other comprehensive income There is no comprehensive income related to the Re-measurement gain on defined benefit obligation in this period and in the comparable period of last year. Shareholders Equity The total Equity (No minority interest) in this quarter increased by 8% (SAR 25.6 million) compared with the last year as of 31 March 2017 as a result of sale of towers. The total Equity decreased by 22.4% (SAR 99.7 million) to reach SAR 346.2 million compared to the opening balance as of 1 April 2016 of SAR 445.9 million. The accumulated losses amounting to SAR 283.8 million as of 30 September 2017, which represents 45.05% of the Companys 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 September 2017 and 30 September 2016, by the weighted average number of shares outstanding during the period ended 30 September 2017. The weighted average number of shares for the periods ended 30 September 2017 and 30 September 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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