Zain KSA net profit slumps 49% to SAR 83 mln in H1 2021

11/07/2021 Argaam Exclusive

View other reports

Share Price

Mobile Telecommunication Company Saudi Arabia (ZAIN KSA)

Mobile Telecommunication Company Saudi Arabia (Zain KSA) reported a net profit after Zakat and tax of SAR 83 million in the first half of 2021, a fall of 49% from SAR 164 million a year earlier.



Financials (M)

Item 6m 2020 6m 2021 Change‬
Revenues 3,928.08 3,833.37 (2.4 %)
Gross Income 2,828.12 2,474.36 (12.5 %)
Operating Income 653.38 317.43 (51.4 %)
Net Income 163.83 82.52 (49.6 %)
Average Shares 573.22 898.73 56.8 %
EPS (Riyals) 0.29 0.09 (67.9 %)


Current Quarter Comparison (M)

Compared With The
Item Q2 2020 Q2 2021 Change‬
Revenues 1,889.22 1,895.86 0.4 %
Gross Income 1,354.69 1,258.86 (7.1 %)
Operating Income 296.67 159.35 (46.3 %)
Net Income 58.61 41.65 (28.9 %)
Average Shares 573.22 898.73 56.8 %
EPS (Riyals) 0.10 0.05 (54.7 %)

The decline in earnings was attributed to a 2% decrease in revenue year-on-year (YoY), and an increase of 24% YoY in the cost of revenue, due to the provision reversal released in the previous period. This was partially compensated by a decrease in finance cost by SAR 262 million as a result of the capital restructure.

The second-quarter net profit after Zakat and tax decreased by 29% YoY to SAR 42 million, hit by an increase of 19% YoY in the cost of revenue, as a result of the provision released in Q2 2020. Moreover, operating expenses rose by SAR 40 million.

 

This has been partially absorbed by a decrease in finance cost by SAR 124 million due to the reduction of the total debt of the company as a result of the capital restructuring.

 

When compared to the previous quarter, net profit grew by 2.4%.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2012 1,521.59 2.5 % 702.20 (1.9 %) (419.99) 21.0 % (1.91)
Q2 2012 1,629.02 (4.4 %) 707.12 (23.4 %) (393.64) 12.2 % (1.79)
Q3 2012 1,529.90 (14.8 %) 711.62 (18.2 %) (493.00) (1.9 %) (0.86)
Q4 2012 1,490.16 (13.1 %) 738.98 7.0 % (442.78) 4.0 % (0.77)
Q1 2013 1,719.40 13.0 % 776.23 10.5 % (397.95) 5.2 % (0.69)
Q2 2013 1,706.35 4.7 % 830.76 17.5 % (370.41) 5.9 % (0.65)
Q3 2013 1,573.32 2.8 % 760.98 6.9 % (420.81) 14.6 % (0.73)
Q4 2013 1,523.52 2.2 % 766.88 3.8 % (462.30) (4.4 %) (0.81)
Q1 2014 1,545.77 (10.1 %) 798.66 2.9 % (318.36) 20.0 % (0.56)
Q2 2014 1,567.13 (8.2 %) 797.05 (4.1 %) (328.94) 11.2 % (0.57)
Q3 2014 1,553.00 (1.3 %) 810.67 6.5 % (315.81) 25.0 % (0.55)
Q4 2014 1,556.46 2.2 % 816.27 6.4 % (306.46) 33.7 % (0.53)
Q1 2015 1,656.79 7.2 % 874.43 9.5 % (256.72) 19.4 % (0.45)
Q2 2015 1,648.83 5.2 % 949.40 19.1 % (201.16) 38.8 % (0.35)
Q3 2015 1,763.73 13.6 % 1,062.18 31.0 % (222.95) 29.4 % (0.39)
Q4 2015 1,672.03 7.4 % 1,065.09 30.5 % (291.11) 5.0 % (0.51)
Q1 2016 1,764.88 6.5 % 1,085.55 24.1 % (250.00) 2.6 % (0.44)
Q2 2016 1,727.40 4.8 % 1,112.80 17.2 % (328.30) (63.2 %) (0.57)
Q3 2016 1,633.76 (7.4 %) 1,060.63 (0.1 %) (266.11) (19.4 %) (0.46)
Q4 2016 1,800.61 7.7 % 1,141.69 7.2 % (134.13) 53.9 % (0.23)
Q1 2017 1,919.05 8.7 % 1,290.99 18.9 % 45.47 118.2 % 0.08
Q2 2017 1,864.57 7.9 % 1,258.55 13.1 % 7.69 102.3 % 0.01
Q3 2017 1,806.56 10.6 % 1,230.87 16.1 % 3.41 101.3 % 0.01
Q4 2017 1,715.65 (4.7 %) 1,132.61 (0.8 %) (45.02) 66.4 % (0.08)
Q1 2018 1,685.97 (12.1 %) 1,117.37 (13.4 %) (77.33) (270.1 %) (0.13)
Q2 2018 1,846.43 (1.0 %) 1,161.96 (7.7 %) (37.57) (588.4 %) (0.07)
Q3 2018 1,951.88 8.0 % 1,320.57 7.3 % 48.01 1309.8 % 0.08
Q4 2018 2,046.24 19.3 % 1,824.66 61.1 % 399.26 986.8 % 0.70
Q1 2019 2,093.49 24.2 % 1,480.38 32.5 % 129.31 267.2 % 0.23
Q2 2019 2,056.76 11.4 % 1,523.73 31.1 % 130.20 446.5 % 0.23
Q3 2019 2,008.08 2.9 % 1,495.03 13.2 % 120.71 151.5 % 0.21
Q4 2019 2,227.90 8.9 % 1,469.37 (19.5 %) 104.96 (73.7 %) 0.18
Q1 2020 2,038.87 (2.6 %) 1,473.43 (0.5 %) 105.22 (18.6 %) 0.18
Q2 2020 1,889.22 (8.1 %) 1,354.69 (11.1 %) 58.61 (55.0 %) 0.10
Q3 2020 1,927.59 (4.0 %) 1,265.93 (15.3 %) 60.17 (50.2 %) 0.10
Q4 2020 2,060.88 (7.5 %) 1,350.59 (8.1 %) 35.95 (65.8 %) 0.04
Q1 2021 1,937.51 (5.0 %) 1,215.51 (17.5 %) 40.87 (61.2 %) 0.05
Q2 2021 1,895.86 0.4 % 1,258.86 (7.1 %) 41.65 (28.9 %) 0.05

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2012 47.30 % 14.66 % (26.92 %)
Q2 2012 44.59 % 14.89 % (26.41 %)
Q3 2012 43.96 % 14.62 % (27.64 %)
Q4 2012 46.35 % 14.24 % (28.35 %)
Q1 2013 46.07 % 13.24 % (27.12 %)
Q2 2013 47.44 % 12.73 % (26.44 %)
Q3 2013 47.88 % 13.68 % (25.15 %)
Q4 2013 48.06 % 13.65 % (25.32 %)
Q1 2014 49.73 % 15.48 % (24.76 %)
Q2 2014 50.30 % 15.95 % (24.65 %)
Q3 2014 51.27 % 15.29 % (24.40 %)
Q4 2014 51.79 % 15.50 % (22.58 %)
Q1 2015 52.08 % 15.99 % (21.21 %)
Q2 2015 53.79 % 18.43 % (18.95 %)
Q3 2015 55.88 % 21.85 % (15.66 %)
Q4 2015 58.61 % 24.16 % (14.42 %)
Q1 2016 60.77 % 25.19 % (14.09 %)
Q2 2016 62.44 % 24.01 % (15.77 %)
Q3 2016 63.61 % 25.15 % (16.70 %)
Q4 2016 63.53 % 25.92 % (14.13 %)
Q1 2017 65.05 % 28.46 % (9.65 %)
Q2 2017 65.83 % 31.52 % (4.81 %)
Q3 2017 66.60 % 32.71 % (1.05 %)
Q4 2017 67.25 % 34.45 % 0.16 %
Q1 2018 67.01 % 34.79 % (1.57 %)
Q2 2018 65.81 % 35.09 % (2.22 %)
Q3 2018 65.73 % 36.27 % (1.55 %)
Q4 2018 72.03 % 42.01 % 4.41 %
Q1 2019 72.91 % 44.85 % 6.79 %
Q2 2019 75.47 % 48.22 % 8.67 %
Q3 2019 77.08 % 51.02 % 9.50 %
Q4 2019 71.17 % 48.53 % 5.79 %
Q1 2020 71.55 % 48.06 % 5.53 %
Q2 2020 70.95 % 47.63 % 4.77 %
Q3 2020 68.82 % 44.93 % 2.38 %
Q4 2020 68.78 % 43.47 % 1.56 %
Q1 2021 66.37 % 41.43 % 0.76 %
Q2 2021 65.09 % 39.66 % 0.54 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2012 220.28 (8.23) (8.23) 17.79
Q2 2012 220.28 (7.98) (7.98) 16.00
Q3 2012 573.22 (3.08) (3.08) 15.53
Q4 2012 573.22 (3.05) (3.05) 14.74
Q1 2013 573.22 (3.01) (3.01) 14.05
Q2 2013 573.22 (2.97) (2.97) 13.40
Q3 2013 573.22 (2.85) (2.85) 12.67
Q4 2013 573.22 (2.88) (2.88) 11.79
Q1 2014 573.22 (2.74) (2.74) 11.22
Q2 2014 573.22 (2.67) (2.67) 10.60
Q3 2014 573.22 (2.49) (2.63) 10.10
Q4 2014 573.22 (2.21) (2.45) 9.53
Q1 2015 573.22 (2.11) (2.34) 9.04
Q2 2015 573.22 (1.88) (2.12) 8.71
Q3 2015 573.22 (1.72) (1.81) 8.31
Q4 2015 573.22 (1.70) (1.70) 7.94
Q1 2016 573.22 (1.68) (1.68) 7.45
Q2 2016 573.22 (1.91) (1.91) 6.88
Q3 2016 573.22 (1.98) (1.98) 6.42
Q4 2016 573.22 (1.71) (1.71) 6.21
Q1 2017 573.22 (1.19) (1.19) 6.28
Q2 2017 573.22 (0.61) (0.61) 6.29
Q3 2017 573.22 (0.14) (0.14) 6.30
Q4 2017 573.22 0.02 0.02 6.22
Q1 2018 573.22 (0.19) (0.19) 6.31
Q2 2018 573.22 (0.27) (0.27) 6.22
Q3 2018 573.22 (0.20) (0.20) 6.33
Q4 2018 573.22 0.58 0.58 7.00
Q1 2019 573.22 0.94 0.94 6.60
Q2 2019 573.22 1.23 1.23 6.75
Q3 2019 573.22 1.36 1.36 6.92
Q4 2019 573.22 0.85 0.85 7.16
Q1 2020 573.22 0.80 0.80 7.22
Q2 2020 573.22 0.68 0.68 7.31
Q3 2020 573.22 0.57 0.34 7.40
Q4 2020 898.73 0.29 0.14 9.71
Q1 2021 898.73 0.22 0.07 9.79
Q2 2021 898.73 0.20 0.05 9.83

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2012 NEG NEG 9.41
Q2 2012 NEG NEG 7.52
Q3 2012 NEG NEG 1.95
Q4 2012 NEG NEG 1.58
Q1 2013 NEG NEG 1.71
Q2 2013 NEG NEG 2.18
Q3 2013 NEG NEG 2.22
Q4 2013 NEG NEG 2.33
Q1 2014 NEG NEG 2.73
Q2 2014 NEG NEG 2.76
Q3 2014 NEG NEG 3.12
Q4 2014 NEG NEG 2.00
Q1 2015 NEG NEG 1.90
Q2 2015 NEG NEG 2.09
Q3 2015 NEG NEG 1.75
Q4 2015 NEG NEG 1.68
Q1 2016 NEG NEG 1.87
Q2 2016 NEG NEG 1.82
Q3 2016 NEG NEG 1.67
Q4 2016 NEG NEG 2.13
Q1 2017 NEG NEG 2.25
Q2 2017 NEG NEG 2.34
Q3 2017 NEG NEG 2.22
Q4 2017 More than 50 More than 50 1.88
Q1 2018 NEG NEG 1.81
Q2 2018 NEG NEG 1.71
Q3 2018 NEG NEG 1.57
Q4 2018 22.77 22.77 1.89
Q1 2019 18.68 18.68 2.66
Q2 2019 16.19 16.19 2.96
Q3 2019 14.07 14.07 2.76
Q4 2019 22.14 22.14 2.62
Q1 2020 18.84 18.84 2.10
Q2 2020 26.64 26.64 2.48
Q3 2020 37.72 More than 50 2.92
Q4 2020 47.02 More than 50 1.40
Q1 2021 More than 50 More than 50 1.53
Q2 2021 More than 50 More than 50 1.48

Business Segments (Million)

Compared With The
Period Mobile Telecommunications Company Zain Sales Zain Payments Zain Drones Eliminations
Q1 2018 1,685.97 - - - -
Q2 2018 1,846.43 - - - -
Q3 2018 1,951.89 - - - -
Q4 2018 2,046.24 - - - -
Q1 2019 2,016.32 679.91 - - (602.74)
Q2 2019 1,978.29 670.22 - - (591.75)
Q3 2019 1,923.51 682.16 - - (597.59)
Q4 2019 2,166.58 842.50 0.02 - (781.19)
Q1 2020 1,949.70 599.58 0.02 - (510.44)
Q2 2020 1,848.49 520.83 0.08 - (480.18)
Q3 2020 1,857.34 627.02 0.12 - (556.90)
Q4 2020 1,985.05 612.51 0.51 - (537.19)
Q1 2021 1,898.99 483.70 1.99 - (447.17)
Q2 2021 1,861.58 409.30 2.15 - (377.17)

Analysts Estimates (Million)

Item Q2 2021 (e) Q2 2021 (a) Change‬
Average 43.55 41.65 (4.4 %)

Estimates vs Actual (Million)

Item Q2 2021 (e) Q2 2021 (a) Change
SNB Capital 41.00 41.65 1.6 %
Al Rajhi Capital 43.00 41.65 (3.1) %
Riyad Capital 43.00 41.65 (3.1) %
AlJazira Capital 47.20 41.65 (11.8) %

Current
Market Cap (M Riyal) 10,389.32
Enterprise Value (EV) (M) 17,554.33
Shares Outstanding ((M)) 898.73
EPS ( Riyal) (TTM) 0.47
Book Value (BV) ( Riyal) 11.86
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) Neg
P/E (TTM) 24.66
Price/book 0.97
Return on Average Assets (%) (TTM) 1.5
Return on Average Equity (%) (TTM) 3.9

Comments {{getCommentCount()}}

Be the first to comment

{{Comments.indexOf(comment)+1}}
{{comment.FollowersCount}}
{{comment.CommenterComments}}
loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.