Zain KSA 2021 net profit drops 18% to SAR 214 mln

Mobile Telecommunication Company Saudi Arabia (Zain KSA) reported a net profit after Zakat and tax of SAR 214 million for 2021, down 18% from SAR 260 million a year earlier.

The company attributed the profit decline to revenue that was almost stable despite the cumulative impact of the pandemic, which led to a minimal number of visitors for Umrah, whereby it was compensated by the growth in B2B and 5G revenues.

The cost of revenue increased by 22%, which resulted in a decrease in gross profit by a cumulative impact of 10.28%. The increase in cost is the result of the release of certain provisions in 2020 amounting SAR 484 million, the telco said.

In Q4 2021, the company reported a net profit of SAR 71.1 million, a rise of 98% year-on-year (YoY), due to higher B2B and 5G revenues, despite the increase in cost of revenue by 12% to SAR 78 million.

Compared with the previous quarter, net profit rose 17.7% from SAR 60.39 million.

Shareholders' equity, excluding minority interest, amounted to SAR 9.04 billion in 2021, up 3.56% compared to SAR 8.72 billion a year earlier.

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