Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 03.06.2015
Length: 11 pages
Data source: Published sources
Abstract
In November 2014 Saudi telecom company Etihad Etisalat (Mobily) cut its profits and revenues for 2013 and for the first half of 2014 due to excessive booking of revenues. An unprecedented scandal hit the business community in Saudi and USD9.1 billion of Mobily's market value was wiped out. The scandal sparked an investigation by the Capital Market Authority (CMA) in order to send a strong signal to incoming foreign investors. Mobily CEO and Managing Director Khalid Al Kaf was removed from his position. Board members and senior executives might be prosecuted for insider trading violations. The Mobily shock would have a long-lasting impact on market.
Location:
Industry:
Size:
Revenue USD4.2 Billion (SAR15.7 Billion) in 2014
Other setting(s):
2015
About
Abstract
In November 2014 Saudi telecom company Etihad Etisalat (Mobily) cut its profits and revenues for 2013 and for the first half of 2014 due to excessive booking of revenues. An unprecedented scandal hit the business community in Saudi and USD9.1 billion of Mobily's market value was wiped out. The scandal sparked an investigation by the Capital Market Authority (CMA) in order to send a strong signal to incoming foreign investors. Mobily CEO and Managing Director Khalid Al Kaf was removed from his position. Board members and senior executives might be prosecuted for insider trading violations. The Mobily shock would have a long-lasting impact on market.
Settings
Location:
Industry:
Size:
Revenue USD4.2 Billion (SAR15.7 Billion) in 2014
Other setting(s):
2015