UAE’s Etisalat says Mobily restatement, provisioning to hurt results

Saudi Arabia’s Mobily, 28 per cent owned by Etisalat, said earlier that it would reissue its 2014 and first quarter 2015 financial statements



Abu Dhabi-listed Etisalat said on Sunday the impact of further earnings restatement by unit Etihad Etisalat (Mobily) would hit its own 2014 results by Dhs 616m ($167.7 m) before royalty.

Saudi Arabia’s Mobily, 28 per cent owned by Etisalat, said earlier on Sunday that it would reissue its 2014 and first quarter 2015 financial statements. It follows an investigation by a team appointed by the Capital Market Authority, which found concerns over some of Mobily’s contracts with customers.

Etisalat said the impact of a separate provision by Mobily, against receivables from another operator, would be reflected in Etisalat’s second-quarter earnings.

The move would hit its 2015 net profit by Dhs 204m, it said.