PRESS RELEASE: ATHEEB TELECOM ON 31/10/2023
| Element List | Current Quarter | Similar Quarter For Previous Year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 237.89 | 148.02 | 60.71 | 206.33 | 15.29 |
| Gross Profit (Loss) | 77.5 | 43.12 | 79.73 | 70.66 | 9.68 |
| Operational Profit (Loss) | 52.77 | 10.98 | 380.6 | 35.81 | 47.36 |
| Net Profit (Loss) after Zakat and Tax | 47.89 | 6.63 | 622.32 | 52.6 | -8.95 |
| Total Comprehensive Income | 47.89 | 6.63 | 622.32 | 52.6 | -8.95 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar Period For Previous Year | %Change |
|---|---|---|---|
| Sales/Revenue | 444.22 | 288.5 | 53.98 |
| Gross Profit (Loss) | 148.17 | 80.66 | 83.7 |
| Operational Profit (Loss) | 88.58 | 14.18 | 524.68 |
| Net Profit (Loss) after Zakat and Tax | 100.5 | 4.97 | 1,922.13 |
| Total Comprehensive Income | 100.5 | 4.97 | 1,922.13 |
| Total Share Holders Equity (after Deducting Minority Equity) | 216.57 | 78.96 | 174.28 |
| Profit (Loss) per Share | 11.17 | 0.55 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
Summary of Financial Impact and Agreement Details:
Reasons for Increase in Net Income:
- Revenue Increase: Higher revenue contributed to the increase in net income for the period.
- Other Income Increase: Additional sources of income contributed positively to the net income.
- Decrease in Selling and Marketing Expenses: Reduction in expenses related to selling and marketing activities helped improve net income.
- Allowance for Impairment in Trade Receivables: Decrease in allowance for impairment in trade receivables positively impacted net income.
- Increase in Costs: Despite an increase in costs of services and general & administrative expenses, the net income still increased.
- Financial Charges Decrease: Decrease in financial charges contributed to the increase in net income.
Reasons for Decrease in Net Income (Second Quarter vs. Previous Quarter):
- Recognition of Financial Income: Net income decreased due to the absence of financial income recognized in the previous quarter.
Agreement Details with Tawal Company:
- Etihad Atheeb Telecommunication Company (GO) signed an agreement with Tawal Company to settle all balances and dues between the two parties.
- Settlement amount until October 31, 2023, is 48 million Saudi riyals.
- Components of Settlement:
- Transfer of ownership of telecommunications towers to Etihad Atheeb Telecommunications Company for 30 million Saudi riyals.
- Payment of 18 million Saudi riyals for all obligations related to the sites sharing agreement.
- Settlement amount to be paid in two installments: 20 million Saudi riyals before October 31, 2023, and 28 million Saudi riyals before March 31, 2024.
- Transfer of ownership of sites to Etihad Atheeb Communications Company.
- Cancellation of previous site-sharing agreement.
- If settlement amount is not paid during the grace period, Etihad Atheeb Telecommunications Company is required to pay the total amount due for the site-sharing agreement, amounting to 54 million Saudi riyals, to Tawal Company.
- Positive financial impact of the settlement will be reflected in the company’s accounts in the third quarter ending on December 31, 2023.
