Zain KSA posts SAR 686.8 mln profit in H1 2023; Q2 at SAR 124.2 mln

Mobile Telecommunication Company Saudi Arabia (Zain KSA) posted a net profit of SAR 686.8 million in H1 2023, from SAR 214.4 million a year earlier.

The positive performance was driven by an increase of SAR 411 million in gross profit, mainly due to higher net revenue by SAR 430 million, or 9.81%, compared to the same period of 2022. This increase was due to the growth in business-to-business, 5G, digital products and Tamam.

The cost of revenue inched up by SAR 19 million, or 0.95%.

OPEX grew by SAR 380 million, mainly administrative costs by SAR 23 million and maintenance costs by SAR 220 million. On the other hand, expected credit loss expense increased by SAR 16 million.

Finance costs rose by SAR 86 million due to higher SAIBOR and LIBOR.

Finance income surged by SAR 36 million on the amounts placed as FDs with banks. Net gain on sale and leaseback of 3,600 towers to GLI in Q1 2023 of SAR 532 million, excluding any related increase in Zakat.

Net profit for Q2 2023 fell 7% to SAR 124.2 million from SAR 133.8 million a year earlier on higher gross profit driven by higher net revenue and lower cost of revenue. This is, in addition, to higher finance income. This came despite an increase in OPEX and finance costs. 

Sequentially, net profit retreated 77.9% from SAR 562.67 million in Q4 2022.

Shareholders’ equity, no minority interest, stood at SAR 10.05 billion as of June 30, 2023, compared to SAR 9.41 billion a year earlier. 

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