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FINANCIAL NEWS
Etisalat to cut profit by USD44m on Mobily’s accounting error
06 Nov 2014
(MENAFN) Etisalat, the Abu Dhabi-based firm, announced it will cut its profits by USD44 million due to the decision made by Mobily, its Saudi Arabian affiliate to restate 18 months of earnings, Emirates 24/7 reported.
The UAE’s biggest telecommunications operator owns 27.5 percent of Mobily, which had to slash its profits for 2013 and the January-June period of 2014 by a combined USD381.2 million due to accounting errors.
Etisalat said that the impact of this reduction will reduce its profit by USD35.38 million for 2013 as well as by USD8.71 million for the January-September period of this year, with Etisalat accounting for these reductions in its earnings statement for the fourth quarter of this year.
Etisalat previously announced a net profit of USD1.92 billion in 2013, of which Mobily provided USD 321.20 million, accounting to 17 percent before Mobily slashed its profits.
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