7010 · 19/02/2017 15:35:14 · Announcement #45639 · View on Saudi Exchange

SAUDI TELECOM COMPANY ANNOUNCES THE CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDING AT 31.12.2016

Element Current year Previous year % Change
Net profit (loss)
8,532
9,258
-7.84
Earning or loss per share, Riyals
4.27
4.63
-
Gross profit (loss)
28,772
30,345
-5.18
Operational profit (loss)
9,901
11,859
-16.51

*All figures are in (Millions) Saudi Arabia, Riyals

Element EXPLAINATION
Reasons of annual financial results The net profit for the 2016 decreased by SR 727m compared to the previous year, mainly due to the following:

1)The SR 2,754m increase in cost of services, and the SR 386m increase in operating expenses during the 2016 compared to the previous year, while consolidated revenue for the year increased by SR 1,182m compared to last year, operating profit for the year declined by SR 1,959m compared to the previous year.

2)The SR 981m decrease in (Other income and expenses, net) during the 2016 compared to the previous year, mainly due to the following:
a)The SR 179m decrease in Losses from investments accounted for under equity method during the year compared to last year.
b)The SR 35m decrease in cost of finance compared to last year.
c)The SR 318m increase in commissions compared to last year.
d)The SR 445m decrease in Other income and expenses- other, net compared to last year.

3)Increase in the provision for Zakat & Tax by SR 54m compared to the previous year.
Reclassifications in annual financial results Certain comparatives figures for the year ending at 31 December 2015 have been reclassified to conform with the presentation used for the year ending at 31 December 2016.
Other notes Total Revenue from services amounted to SR 51,833 m compared to SR 50,651 m compared to last year with increase by 2.33%.
Total shareholder equity (excluding non-controlling interest) as 31 December 2016, SR 59,740m compared to SR 60,541m as of 31 December 2015 decreased by 1.32%.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.