| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
11
|
-
|
-
|
-
|
-
|
| Gross profit (loss) |
2,134
|
531
|
301.88
|
2,025
|
5.38
|
| Operational profit (loss) |
133
|
-
|
-
|
-
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) |
-
|
-
|
30.65 |
| Gross profit (loss) |
7,958
|
6,779
|
17.39 |
| Operational profit (loss) |
-
|
-
|
49.33 |
| Earning or loss per share, Riyals |
-
|
-
|
- |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | Q4 2015 net result amounted to SAR 11 million compared to a net loss of SAR 2,108 million for the same quarter in 2014. This is mainly due to the negative impact of the non-recurring adjustments(*) made in Q4 2014 resulting in a decrease in the gross profit by SAR 1,603 million and an increase in operating expenses by SAR 481 million, compared to the current quarter. Q4 2015 gross profit amounted to SAR 2,134 million compared to SAR 531 million for the same quarter in 2014, representing an increase of 3 times mainly due to the negative impact of the non-recurring adjustments(*) made in Q4 2014 resulting in a decrease in revenues by SAR 766 million and an increase in cost of services and sales by SAR 837 million, compared to the current quarter. Q4 2015 revenues amounted to SAR 3,488 million compared to SAR 2,722 million for the same quarter in 2014, representing an increase of 28% mainly due to the negative impact of the non-recurring adjustments(*) made in Q4 2014. Q4 2015 EBITDA amounted to SAR 1,113 million compared to SAR (968) million for the same quarter in 2014. EBITDA margin for the fourth quarter is 32% compared to (36) % for the same quarter of 2014. (*) Non recurring adjustments are detailed in the 2014 reissued financial statements, previously published. |
| Reasons of increase (decrease) for period compared with same period last year | 2015 net result amounted to a loss of SAR 1,093 million compared to a loss of SAR 1,576 million in 2014. This reduction of losses by 31% is mainly due to a significant improvement of the EBITDA that was slightly offset by an increase in Zakat expenses by SAR 128 million and an increase finance expenses by SAR 92 million. 2015 gross profit amounted to SAR 7,958 million compared to SAR 6,778 million in 2014, representing an increase of 17%, reflecting a decrease in the cost of services mainly due to lower interconnection costs. 2015 revenues amounted to SAR 14,424 million compared to SAR 14,004 million in 2014 representing an annual growth of 3%. 2015 EBITDA amounted to SAR 2,941 million compared to SAR 2,246 million in 2014. 2015 EBITDA margin is 20% compared to 16% in 2014. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The net profit of SAR 11 million in Q4 2015 compared to net loss of SAR 158 million in the previous quarter is mainly attributed to the decrease in operating expenses by SAR 206 million. |
| External auditor's report containing reservation | We draw attention to the following matters: a)Note 2.1 to the accompanying interim consolidated financial statements, which describes the basis on which these interim consolidated financial statements have been prepared. As at 31 December 2015, the Group net current liabilities amounted to SR 9.7 billion (31 December 2014: SR 17.3 billion) which indicate that the Group ability to meet its obligations as they become due depends on its ability to enhance its results of operations and its cash flows performance. As explained in note 6 to the interim consolidated financial statements, the Group in December 2015 during its discussions with the lenders reached to an agreement to reset the financial covenants for certain long-term loans. The Group management is at an advanced stage of negotiations with the other lenders to obtain a reset of the financial covenants. Further, the Group expects to continue to meet its obligations as they become due in the normal course of operation. Accordingly, the accompanying interim consolidated financial statements have been prepared under the going concern basis. b)Notes 12 and 13 to the accompanying interim consolidated financial statements which outline the impact of certain reclassifications and restatements in the interim consolidated financial statements for the three-month period and the year ended 31 December 2014 as a result of restatements regarding the revenue recognition of the multiple element arrangements contracts and the net property and equipment capitalization and depreciation. These notes contain details of the impact of these adjustments on the revenue and net income in the interim consolidated financial statements for the three-month period and the year ended 31 December 2014 and retained earnings and other related balances as at 31 December 2014. |
| Reclassifications in quarterly financial results | Certain figures for the comparative period have been reclassified to conform to the current period presentation |
| Other notes | The Company has breached a financial covenant under its long term financing facilities and, consequently, such long-term loans and notes payable have been reclassified under current liabilities as of December 31st, 2014. The management of the company has been engaged in negotiations with the lenders to obtain a reset of the relevant covenant. As a result of these negotiations, the company successfully managed to sign on December 29th, 2015 an agreement with the majority of its Saudi creditors to waive the breach of covenant under several facilities totaling SR 12.1 billion leading to the reclassification of the outstanding amount of these facilities from current liabilities to non-current liabilities. Mobily continues its discussions with the other creditors under the ECA facilities and certain other bilateral facilities toward concluding a similar waiver under their relevant facilities. The Company continues to service on time all its contractual payment obligations to its lenders in accordance with the existing financing agreements. |
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.