Etihad Etisalat Co. (Mobily), Saudi Arabia’s second largest mobile operator, said it expects 2014 losses to widen by SAR 830 million to SAR 1.745 billion after it revised its accounting policies following a probe by the Capital Market Authority (CMA).
Mobily said the implementation of new accounting policies, in response to a review by a CMA-appointed team, will also reduce shareholder equity as of December 31, 2014 by SAR 2.4 billion to SAR 17.02 billion.
After the changes, loss for Q1 will also narrow by SAR 207 million resulting in a SAR 8 million net profit. Revised financial statements for 2014 and Q1-2015 will be issued before Q2 results are announced, the operator added.
In a move unrelated to the CMA report, Mobily said it has increased provisions related to receivables from Zain Saudi Arabia by SAR 800 million. The provisions will take effect in the second quarter, it said in the same statement.
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