On Monday, Mobily shocked investors by announcing a cut in its 2013 and first-half 2014 earnings totaling 1.43 billion riyals ($381.2 million). On Monday, Mobily shocked investors by announcing it had cut its 2013 and first-half 2014 profits by a total of 1.43 billion riyals ($381.2 million) due to accounting errors.
On Monday, Mobily shocked investors by announcing it had cut its 2013 and first-half 2014 profits by a total of 1.43 billion riyals ($381.2 million) due to accounting errors. Shares of Mobily - which also reported a 71 percent drop in third-quarter profit - have fallen 18.5 percent since they resumed trading on Tuesday as the market regulator began investigating the matter.
Mobily's shares, which own 27 percent of Etisalat's shares, have fallen 18.5 percent since they resumed trading on Tuesday. <Etisalat owns 27.5 percent of Mobily's shares. Etisalat said in a statement that it has “full confidence” that Mobily will overcome this temporary issue and return to growth quickly. The statement added that the company understands that Mobily's Board of Directors and Audit Committee have launched a thorough review process into the matter and that discussions are ongoing with them regarding any actions that may be taken.
The statement added. <The statement added that Etisalat supports the steps taken by Mobily's Board of Directors. <Ahmed Julfar is Etisalat's CEO and a member of Mobily's board of directors, according to the UAE company's 2013 annual report. Etisalat CFO Serkan Okandan was appointed as Mobily's deputy CEO in mid-October while retaining his position at Etisalat. Etisalat said on Wednesday it would cut its profit by $44 million following Mobily's decision to adjust the results. <Etisalat will coordinate and communicate with the relevant government authorities in the Kingdom of Saudi Arabia and will keep them fully informed of all actions being taken. Etisalat attaches great importance to its customers in all markets, and the Saudi telecommunications market is extremely important to Etisalat Group, as it offers great potential and opportunities for the growth of Mobily's business, which is currently undergoing a transformation that will enable it to become a leading player in the Kingdom's integrated ICT systems sector.
Mobily is currently undergoing a transformation that will qualify it to become one of the leading players in the Kingdom's integrated ICT systems sector. Established more than 30 years ago, Etisalat Group today operates in 19 markets across the Middle East, Africa and Asia, and adheres to the laws and regulations in all the countries in which it operates and adheres to the highest standards of transparency and corporate governance, as does the executive management team, who adopt the highest standards of fiduciary and ethical business practices.
