Zain KSA’s profits grow by 235.2% during Q3 to SAR 285 mln

The net profit after zakat and tax of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) in the third quarter grew to 285 million riyals, compared to 85 million riyals in the same quarter of last year, by 235.2%. This came after today’s announcement of the preliminary financial results for the period ending on September 30, 2023. (nine months).

Operating profit reached 331 million riyals in the third quarter, compared to 246 million riyals in the same quarter of the previous year, an increase of 34.5%.

The company recorded revenues during the third quarter of 2.5 million riyals, compared to 2.2 million riyals in the same quarter of last year, an increase of 10.4%.

Net profit after zakat and tax in the 9-month period amounted to 971 million riyals, compared to 299 million riyals in the same period last year, a growth of 224.7%.

Earnings per share in the current period reached 1.08 riyals, compared to 0.33 riyals in the same period last year.

Zain KSA (the company) significantly enhanced its net profit for Q3 2023 to reach SAR 285 million, a 234% increase compared to the SAR 85 million of Q3 2022 net profit. The company’s gross profit increased by SAR 105 million compared to the same period in 2022, mainly due to the following:

– A record quarterly revenue of SAR 2.5 billion, with an increase by SAR 239 million, or 10% compared to the same quarter of 2022. This increase was due to the growth in B2B, 5G services, digital packages, wholesale in addition to the growth on Tamam.

– The increase in revenue lead to an increase in cost of revenue by 15%.

– Opex increased by SAR 90 million, mainly due to the restructuring cost of the company further to the Tower-Co sale and leaseback; At the same time, ECL expenses decreased by SAR 82 million as a result of better collectability.

– Finance costs increased by SAR 23 million due to the increase in SAIBOR and LIBOR.

– Net gain on sale and leaseback of 1,400 towers to GLI, which were transferred in this quarter, amounted to SAR 139 million, excluding any related increase in Zakat impact.

Zain KSA recorded of net Profit of SAR 285 million in Q3 2023 compared to SAR 124 million in Q2 2023, an increase by SAR 160 million due to the following:

– increase in revenue by SAR 133 million and the cost of revenue has increased by SAR 135 million resulting in a slight decrease in gross profit by SAR 2 million

– increase in Opex by SAR 29 million with a decrease in ECL by 78 million

– increase in Finance costs by SAR 30 million

– Net gain on sale and leaseback of 1,400 towers to GLI of SAR 139 million, excluding any related increase in Zakat impact recognized in Q3 2023 where there was no sites transfer in Q2 2023.

– Zain KSA net profit for the nine-month period ended 30 September 2023 was the highest in the company’s history, reaching SAR 971 million a 225% increase or SAR 672 million compared to SAR 299 million of net profit in the same period of 2022.

– Gross profit increased by SAR 517 million compared to the same period in 2022, mainly due to the following:

– An increase in revenue by SAR 669 million, or 10% compared to the same period of 2022. This increase was due to the growth in B2B, 5G services, digital packages, wholesale in addition to the growth on Tamam.

– Cost of revenue has increased by SAR 152 million

– Opex increased by SAR 470 million mainly due to the restructuring cost of the company further to the Tower-Co sale and leaseback, while ECL expense decreased by SAR 66 million

– Finance costs increased by SAR 114 million due to the increase in SAIBOR and LIBOR.

– Net Gain on sale and leaseback of 5,000 towers transferred to GLI for the amount of SAR 671 million, excluding any related increase in Zakat impact.

The total CAPEX investment for Q3 2023 was SAR 192 million to enhance customer service quality further.

In September 2023, the company paid the MFA installment for the amount of SAR 317 million and its relevant interest.