Etihad Atheeb profits grow 622.3% during the Q3 to SAR 47.8 mln

The net profit after zakat and tax for Etihad Atheeb Telecommunications Company (GO) grew during the third quarter to SAR 47.8 million, compared to SAR 6.6 million in the same quarter of last year, by 622.3%.

This came after today’s announcement of the preliminary financial results for the period ending on September 30, 2022. (nine months).

The operating profit reached SAR 52.7 million in the third quarter, compared to SAR 10.9 million in the same quarter of the previous year, an increase of 380.6%.

The company also achieved a net profit during the 9-month period of SAR 100.5 million, compared to SAR 4.9 million in the same period last year, a growth rate of 1922.1%.

Earnings per share in the current period reached SAR 11.17, compared to SAR 0.55 in the same period last year.

The reason behind the increase in net income for the period compared to the comparative period is an increase in revenue, an increase in other income and decrease in selling and marketing expenses, and the allowance for impairment in trade receivables. In spite of the increase in costs of services, general & administrative expenses, and financial charges.

The reason behind the decrease in net income for the second quarter compared to the previous quarter was due to the recognition of the financial income in the previous quarter.

The reason behind the increase in net income for the period compared to the comparative period is due to an increase in revenue, decreases in selling and marketing expenses, allowance for impairment in trade receivables, and financial charges. In spite of the increase in costs of services, the general & administrative expenses, and the decrease in other income.

Subsequent events:

Etihad Atheeb Telecommunication Company (GO) announces signing an agreement with Tawal Company to settle all balances and dues between the two parties for the period extending from the beginning of the dealings between the two parties until the date of October 31, 2023 AD. This agreement will entail the following:

It was agreed that the settlement amount until October 31, 2023, would be SAR 48 million in favor of the Tawal Company, not including taxes, divided into the following:

– Transferring the ownership of the telecommunications towers, starting from the effective date of this settlement to the benefit of Etihad Atheeb Telecommunications Company for an amount of 30 million Saudi riyals.

– Paying an amount of 18 million Saudi riyals in exchange for all obligations related to the sites sharing agreement.

– The settlement amount of 48 million Saudi riyals will be paid in two instalments: 20 million Saudi riyals before October 31, 2023, and 28 million Saudi riyals before March 31, 2024.

– Transferring the entire ownership of the sites, starting from the effective date of this settlement to the benefit of Etihad Atheeb Communications Company.

– Cancellation of the previous site-sharing agreement starting from the effective date of the settlement.

– If the settlement as mentioned above amount is not paid during the grace period, this agreement will be considered void, and Etihad Atheeb Telecommunications Company is required to pay the total amount due for the site sharing agreement, amounting to 54 million Saudi riyals, in favor of Tawal Company.

In addition to what was mentioned above, the positive financial impact of this settlement will be reflected and recorded in the company’s accounts in the third quarter ending on December 31, 2023.