| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
-
|
10.6
|
-
|
-
|
57.84
|
| Gross profit (loss) |
1,671
|
2,134
|
-
|
1,741
|
-
|
| Operational profit (loss) |
86.9
|
133
|
-
|
-
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) |
-
|
-
|
81.44 |
| Gross profit (loss) |
7,425
|
7,958
|
- |
| Operational profit (loss) |
234.7
|
-
|
- |
| 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 2016 net result amounted to a loss of SAR 70.7 million compared to a net profit of SAR 10.6 million for the same quarter in 2015. This is due to the decrease in gross profit by SAR 463 million, which was partially offset by the decrease in operating expenses by 20.8%, reflecting continuous cost optimization efforts, certain savings and reversal of certain accruals. Q4 2016 gross profit amounted to SAR 1,671 million compared to SAR 2,134 million for the same quarter in 2015, representing a decrease of 21.7% mainly due to the decrease in revenues. Q4 2016 EBITDA amounted to SAR 953.8 million (or 32.8% EBITDA margin) compared to SAR 1,113 million (or 31.9% EBITDA margin) for the same quarter in 2015. The decrease in EBITDA by SAR 159.2 million is mainly attributed to the decrease in gross profit, while the improvement in the EBITDA margin is mainly attributed to the decrease in G&A expenses by SAR 251 million, reflecting continuous cost optimization efforts, certain savings and reversal of certain accruals. Q4 2016 revenues amounted to SAR 2,908 million compared to SAR 3,488 million for the same quarter in 2015, representing a decrease of 16.6% mainly due to: (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 12 months of 2016 amounted to SAR 202.9 million compared to a net loss of SAR 1,093 million for the same period in 2015. This improvement is mainly due to: (i) The decrease in G&A expenses by SAR 1,432 million (mainly due to booking a SAR 800 million doubtful debt provision towards Zain KSA in the previous period, among other significant cost reductions, certain savings and reversal of certain accruals). (ii) The decrease in Selling and Marketing expenses by SAR 169 million The improvement in the G&A and Selling & Marketing expenses was offset by: (i) Decrease in gross profit by SAR 533 million. (ii) Increase in depreciation by SAR 149 million. The gross profit for 12 months of 2016 amounted to SAR 7,425 million compared to SAR 7,958 million for the same period in 2015 with a decrease of 6.7% mainly due to the decrease in revenues. EBITDA for 12 months of 2016 amounted to SAR 4,009 million (or 31.9% EBITDA margin) compared to SAR 2,941 million (or 20.4% EBITDA margin) for the same period in 2015. The increase in EBITDA by SAR 1,068 million is attributed to the decrease in G&A expenses by SAR 1,432 million (mainly due to booking a SAR 800 million doubtful debt provision towards Zain KSA in the previous period), in addition to other significant cost reductions, reflecting continuous cost optimization efforts, certain savings and reversal of certain accruals. The revenues for 12 months of 2016 amounted to SAR 12,569 million compared to SAR 14,424 million for the same period in 2015, representing a decrease of 12.9% 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 | Q4 2016 net loss amounted to SAR 70.7 million compared to a net loss of SAR 167.7 million for Q3 2016. This improvement is attributed to the decrease in operating expenses by 293 million resulting from certain savings and reversal of certain accruals, which was mainly offset by: (i) Decrease in gross profit by SAR 70 million. (ii) Increase in Zakat provision by SAR 113 million (The decrease in Q3 provision was a result of a 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 | Despite the pressure from the decreased revenues, the company maintained a healthy level of EBITDA for Q4 2016 at 32.8%, reflecting continuous efforts towards maintaining and improving profitability. CAPEX for the 12 months of 1016 amounted to SAR 3,209 million compared to SAR 3,485 million for the same period in 2015 with a decrease of 7.9%, while maintaining a high level of efficiency and customer experience, which reflects the company continuous efforts to rationalize CAPEX. Shareholders equity (no minority interest) during the current period amounted to SAR 15,356 million compared to SAR 15,559 million for the same period last year with a decrease of 1.3%. |
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