Mobile Telecommunications Company Saudi Arabia (Zain) announces reduction of its accumulated loss to 30.84% of its capital.
| Element List | Explanation |
|---|---|
| Introduction | Reference to the company's announcement of its annual financial results published on the website of the Saudi Stock Exchange (Tadawul) on 27-01-2019. Mobile Telecommunications Company Saudi Arabia (Zain) announces that it was able to reduce its accumulated losses from 38.77% to 30.84% of the capital of SAR 5,837,291,750. |
| Date of reaching the capital loss | 2018-12-31 Corresponding to 1440-04-24 |
| Amount of accumulated losses | SAR 1,800 million |
| % of accumulated losses from the capital | 30.84 % |
| Reasons that led to these losses | Actions taken by the Company to reduce its accumulated losses: The company's fruitful efforts during 2018 to maximize shareholders’ equity where: 1. The company revenue reached SAR 7,531 million, an increase of SAR 225 million as a result of the increasing demand for the company products and services. 2. Decrease in cost of revenue by SAR 404 million mainly from decrease in annual royalty fees; that was addressed in the fourth quarter as previously announced on Tadawul; which has led, along with the increase in revenue, to an increase in gross profit by SAR 629 million. 3. Increase in other income by SAR 15 million mainly from the finalization of the Universal Service Fund granted from the government. 4. Increase in finance income by SAR 10 million generated from short-term cash deposit. 5. In addition to the impact of International Financial Accounting Standards (IFRS) 15 and 9. 6. All the above has led to improve the company bottom-line and recording a net profit of SAR 332 million in 2018. |
| Applied procedures and instructions | The procedures and instructions of listed companies will be applied to the Saudi Stock Exchange, which has accumulated losses of 20% or more of its capital |
| Additional Information | Attached is the accumulated losses report of the External Auditor, which clarifies the financial position. |
| Attached Documents |  |
Comments