Saudi's Etihad Atheeb reports $27mln revenue impact from settlement deal with supplier

Agreement covers settlement of $98.6mln in balances

  
A Saudi trader monitors stocks at the Saudi stock market in Riyadh, Saudi Arabia, January 8, 2020.

A Saudi trader monitors stocks at the Saudi stock market in Riyadh, Saudi Arabia, January 8, 2020.

REUTERS/Ahmed Yosri

Saudi Arabia’s Etihad Atheeb Telecommunication Co. said on Monday that a settlement deal with a major supplier  has given the company a financial boost. 

The agreement, signed last year to settle all balances and debts, initially resulted in a positive financial impact of 101.3 million riyals ($27 million) in revenue, the firm said in a bourse filing. 

”The outstanding balance agreed upon on December 31, 2020 amounted to 370 million riyals,” the statement said.   

 “The financial impact of the settlement would be reflected in the next financial results,” it added. 

Last week, the company said the two parties had also agreed to cancel their optical fiber (FTTH IRU) agreement .  

The company didn’t name the supplier. 

(Writing by Brinda Darasha; editing by Cleofe Maceda) 

Brinda.Darasha@refinitiv.com 

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