Riyadh, (Business News Report)|| Etihad Atheeb Telecom Company has incurred losses in the fourth quarter of last year 2021.
Atheeb said that it incurred quarterly losses of 7.37 million riyals in the fourth quarter of 2021. This is compared to profits of 126.8 million riyals, in the corresponding period of 2020.
On a quarterly basis, the company’s losses increased by 23.8%. It had incurred losses in the third quarter, amounting to 9.6 million riyals.
During the first nine months of the company’s financial year, it incurred losses of 29 million riyals. This is compared to profits in the corresponding period of last year amounting to 102.6 million riyals.
Atheeb said that the reason for the losses in the fourth quarter and the first nine-month period is due to the decline in other revenues.
A settlement was signed with a major supplier during the same quarter of the previous year, which resulted in other non-recurring revenues amounting to 101 million riyals in addition to an amount of 35.86 million riyals as financing income.
The company was also affected by the increase in the cost of services, general and administrative expenses, selling and marketing expenses, impairment losses in trade receivables and financing expenses, despite the increase in revenues and a decrease in depreciation and amortization expenses and zakat provision.
In a related context, the Atheeb’s shareholders, during the extraordinary general assembly meeting, approved the recommendation of the company’s board of directors to reduce its capital by 60.62% to reach about 89.99 million riyals, compared to 228.53 million riyals before the reduction.
Atheeb said in a statement on Saudi Tadawul that the number of shares after the reduction became about 8.99 million shares, compared to 22.85 million shares before the reduction.
The company added that the reason for the capital reduction is to restructure the company’s capital to extinguish the accumulated losses.
Atheeb is the second telecom company to obtain a license from the Communications and Information Technology Commission to establish a fixed-line telephone services network in Saudi Arabia, which includes the provision of broadband Internet service.
