Etihad Etisalat Co announces the interim financial results for the period ending on 31-12-2014

January 22, 2015 3:43 pm


Etihad Etisalat Co (Mobily) Deputy CEO Serkan Okandan stated that during the fourth quarter of 2014, Mobily continued to be very active in consumer and business segments through the launch of various new products, services and tariffs enhancing customer experience.

As the Mobily team, our strategic focus is on providing superior experience with more value and world class service through technology, operational excellence and innovation.

In 2015, and in line with our long term growth strategy, we will continue to invest in our mobile and fiber infrastructure, and focus on consumer and business segments.

We thank all of our customers, employees, partners and our shareholders for their contribution to Mobily success.

Revenues for the fiscal year 2014 amounted to SAR 15,824 million in comparison to SAR 19,180 million for the fiscal year 2013, representing a decrease of 17.5%. Excluding equipment sales revenues from both years, revenues for the fiscal year 2014 would be 14.1% lower than last year.

Gross profit for the fiscal year 2014 amounted to SAR 8,903 million in comparison to SAR 12,193 million for the fiscal year 2013, representing a decrease of 27.0%.

EBITDA for the fiscal year 2014 amounted to SAR 3,915 million in comparison to SAR 8,450 million for the fiscal year 2013, representing a decrease of 53.7%. EBITDA margin for the fiscal year 2014 was 24.7% compared to 44.1% for the fiscal year 2013.

Net income for the fiscal year 2014 amounted to SAR 220 million in comparison to SAR 5,937 million for the fiscal year 2013, representing a decrease of 96.3%. Earnings per share for the fiscal year 2014 was SAR 0.29 in comparison to SAR 7.71 for the fiscal year 2013.

Capex for the fiscal year 2014 amounted to SAR 5,974 million in comparison to SAR 5,424 million for the fiscal year 2013.

Net debt (gross debt minus cash) as of December 31st 2014 amounted to SAR 15,096 million in comparison to SAR 12,023 million as of the end of 2013.

Net working capital (current assets minus current liabilities) of the Company decreased by SAR 2,593 million mainly due to increase in accounts payable and current portion of long term loans despite decrease in accounts receivable during the fiscal year of 2014. Cash balance as of December 31st 2014 amounted to SAR 1,976 million in comparison to SAR 1,570 million as of the end of 2013.

Q4 2014 vs. Q4 2013:
Revenues for Q4 2014 amounted to SAR 2,792 million in comparison to SAR 5,164 million for the same quarter in 2013, representing a decrease of 45.9%. During Q4 2014, the Company made a deduction of SAR 829 million; for deferred promotion costs and other items; from the recurring telecom revenues in Q4 2014. Excluding equipment sales revenues from both quarters and the adjustment amount of SAR 829 million, revenues for Q4 2014 are 28.7% lower than the same quarter of last year mainly due to decrease in non- recurring revenues from FTTH (fibre to home) capital leases and data center capacity sale agreements.
Gross profit for Q4 2014 amounted to SAR 915 million in comparison to SAR 3,573 million for the same quarter in 2013, representing a decrease of 74.4%.

EBITDA for Q4 2014 amounted to SAR 1,038 million (negative) in comparison to SAR 2,190 million for the same quarter in 2013. During Q4 2014 quarter, the Company made additional provisions for various assets and claims, amounting to SAR 741 million, resulting in a negative impact on the quarter EBITDA. Adjusting for SAR 829 million deducted from revenues and SAR 741 million of additional provisions provided during the quarter, EBITDA for Q4 2014 would be SAR 532 million. Adjusted EBITDA margin for Q4 2014 was 14.7% compared to 42.4% for the same quarter in 2013.

Net loss for Q4 2014 amounted to SAR 2,277 million in comparison to net income of SAR 1,692 million for the same quarter in 2013. During Q4 2014, the Company provided for additional catch-up depreciation of SAR 203 million and goodwill impairment charges of SAR 63 million negatively impacting its earnings. Adjusting for SAR 829 million deducted from revenues, SAR 741 million of additional provisions, additional catch-up depreciation expenses of SAR 203 million and goodwill impairment charges of SAR 63 million recorded during the quarter, adjusted net loss for Q4 2014 would be SAR 441 million.
Capex for Q4 2014 amounted to SAR 1,823 million in comparison to SAR 1,456 million for the same quarter last year.

Net debt (gross debt minus cash) during Q4 2014 decreased by SAR 1,037 million to SAR 15,096 as of December 31st 2014.

Net working capital (current assets minus current liabilities) of the Company decreased by SAR 2,252 million during Q4 2014 mainly due to a decrease in both accounts payable and accounts receivable. The cash balance of the Company increased by SAR 685 million during Q4 2014 to SAR 1,976 million as of December 31st 2014.

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