Mobily shares resume trading in Saudi Arabia

Mobily shares resume trading in Saudi Arabia

03 AUG 2015

Mobily shares resumed trading on Riyadh’s bourse today after the company reissued its financial results for 2014 and Q1 2015, Saudi Arabia’s Capital Market Authority (CMA) said in a statement.

Saudi Arabia’s watchdog suspended Mobily shares in June following an investigation over accountancy discrepancies affecting its 2013 and 2014 financial results, which eventually led to the departure of long-term CEO Khalid al Kaf.

As it now attempts to clean up its books, Mobily restated results last week for the 27 month period to 31 March 2015, which further highlighted struggles facing the operator.

Its restated 2014 loss grew to SAR 1.58 billion ($421.3 million) from SAR 913 million, and the company saw its profits slashed over the entire period by a total of almost SAR 1.76 billion, according to Reuters.

Q2 losses
Yesterday, the company also posted its Q2 2015 results, showing a loss of SAR 900.9 million ($240.2 million), a significant swing from the sequential quarter where it posted a SAR 92.5 million profit.

In a statement, Mobily said “the net loss is mainly attributed to the booking of an additional doubtful debt provision for Zain KSA of SAR 800 million”.

The company has reportedly seen more than $9 billion wiped from its market value since the CMA started its investigation last November.

Last month, the company made changes to its management team as it attempts to overcome financial difficulties. Former MTN South Africa CEO Ahmad Farroukh joined the company as CEO and former Mobinil executive Kais Ben Hamida was named as CFO.

Author

Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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