| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
-
|
-
|
-
|
18.8
|
-
|
| Gross profit (loss) |
1,741
|
2,025
|
-
|
2,087
|
-
|
| Operational profit (loss) |
-
|
-
|
-
|
145.6
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) |
-
|
-
|
88.01 |
| Gross profit (loss) |
5,754
|
5,824
|
- |
| Operational profit (loss) |
147.8
|
-
|
- |
| 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 | Q3 2016 net result amounted to a loss of SAR 167.7 million compared to a net loss of SAR 158.3 million for the same quarter in 2015. This is due to the decrease in gross profit by SAR 284 million, which was offset by: (i) The decrease in operating expenses reflecting continuous cost optimization efforts. (ii) The decrease in Zakat provision resulting from a non-recurring transaction. Q3 2016 gross profit amounted to SAR 1,741 million compared to SAR 2,025 million for the same quarter in 2015, representing a decrease of 14% mainly due to the decrease in revenues. Q3 2016 EBITDA amounted to SAR 809.9 million (or 27.6% EBITDA margin) compared to SAR 820.8 million (or 22.2% EBITDA margin) for the same quarter in 2015. The decrease in EBITDA by SAR 11 million is mainly attributed to the decrease in gross profit, while the improvement in the EBITDA margin is mainly attributed to the decrease in GENERAL AND ADMINISTRATIVE expenses, reflecting continuous cost optimization efforts. Q3 2016 revenues amounted to SAR 2,932 million compared to SAR 3,700 million for the same quarter in 2015, representing a decrease of 20.8% mainly due to lower subscriber base as a result of: (i) The pressure on sales with the full impact of the finger print process implementation. (ii) The suspension of unregistered customers lines. (iii) The reduction of the interconnection rates. |
| Reasons of increase (decrease) for period compared with same period last year | The net loss for the first 9 months of 2016 amounted to SAR 132.3 million compared to a net loss of SAR 1,103.7 million for the same period in 2015. This improvement is mainly due to: (i) The decrease in GENERAL AND ADMINISTRATIVE expenses by SAR 1,181 million (mainly due to booking an additional SAR 800 million doubtful debt provision towards Zain KSA in the previous period, among other cost reductions). (ii) The decrease in Selling and Marketing expenses by SAR 116 million The improvement in the GENERAL AND ADMINISTRATIVE and Selling & Marketing expenses was offset by: (i) Decrease in gross profit by SAR 70 million. (ii) Increase in depreciation by SAR 262 million. The gross profit for the first 9 months of 2016 amounted to SAR 5,754 million virtually at the same level (SAR 5,824 million) for the same period in 2015 with a minor decrease of 1.2%. EBITDA for the first 9 months amounted to SAR 3,056 million (or 31.6% EBITDA margin) compared to SAR 1,829 million (or 16.7% EBITDA margin) for the same period in 2015. The increase in EBITDA by SAR 1,227 million is attributed to the decrease in GENERAL AND ADMINISTRATIVE expenses by SAR 1,181 million (mainly due to booking a SAR 800 million doubtful debt provision towards Zain KSA in the previous period, in addition to other cost reductions, reflecting continuous cost optimization efforts. The revenues for the first 9 months amounted to SAR 9,661 million compared to SAR 10,936 million for the same period in 2015, representing a decrease of 11.7% mainly due to: (i) Decrease in revenues as a result of the pressure on sales with the full impact of the finger print process implementation. (ii) Lower interconnection revenues as a result of the further reduction in mobile termination rates that took place in April 2016. (iii) Decrease in handsets sales. |
| Reasons of increase (decrease) for quarter compared with previous quarter | Q3 2016 net loss amounted to SAR 167.7 million compared to a net profit of SAR 18.8 million for Q2 2016. This decrease is attributed to a decrease in revenues by SAR 357 million mainly due to: (i) The decrease in subscriber base as a result of the pressure on sales with the full impact of the finger print process implementation, and (ii) the suspension of unregistered customers lines. The decrease in revenues was mainly offset by: (i) Decrease in depreciation expenses by SAR 38 million. (ii) Decrease in Zakat provision by SAR 116 million (non-recurring transaction). |
| Reclassifications in quarterly financial results | Certain figures for the comparative period have been reclassified to conform to the current period presentation |
| Other notes | FTTH revenues increased by 32% in the first 9 months of 2016, compared to the same period in 2015 (42% on Q2 and 21% on Q3 2015). Despite the pressure from the decreased revenues, the company maintained a healthy level of EBITDA for Q3 2016 at 27.6%, reflecting continuous efforts towards maintaining and improving profitability. Q3 2016 CAPEX amounted to SAR 344 million compared to SAR 685 million for the same quarter in 2015 with a decrease of 49.8%, while maintaining a high level of efficiency and customer experience, which reflects the company continuous efforts to rationalize CAPEX. Data revenue % from revenue increased to 32% in Q3 2016, compared to 31% in Q3 2015. Shareholders equity (no minority interest) during the current period amounted to SAR 15,427 million compared to SAR 15,549 million for the same period last year with a decrease of 0.78%. |
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.