Zain Saudi swings to net profit in 9M 2017 on higher revenue

25/10/2017 Argaam Exclusive

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Mobile Telecommunications Company Saudi Arabia (Zain Saudi) reported a net profit of SAR 57 million in the first nine months of 2017, compared to a net loss of SAR 844 million in the same period last year, on higher revenue from stronger demand for products and services.

 

The higher earning was also attributed to a decrease in amortization, and lower distribution and marketing expenses. 



Financials (M)

Item 9m 2016 9m 2017 Change‬
Revenues 5,126.04 5,590.17 9.1 %
Gross Income 3,258.98 3,780.41 16.0 %
Operating Income (142.29) 736.66 617.7 %
Net Income (844.41) 56.56 106.7 %
Average Shares 573.22 573.22 -
EPS (Riyals) (1.47) 0.10 106.7 %

The company posted a net profit of SAR 3 million in the third quarter versus a net loss of SAR 266 million a year earlier. However, on a sequential quarter basis, net profit dropped by 63 percent. 



Current Quarter Comparison (M)

Compared With The
Item Q3 2016 Q3 2017 Change‬
Revenues 1,633.76 1,806.56 10.6 %
Gross Income 1,060.63 1,230.87 16.1 %
Operating Income (1.97) 228.95 11739.3 %
Net Income (266.11) 3.41 101.3 %
Average Shares 573.22 573.22 -
EPS (Riyals) (0.46) 0.01 101.3 %


Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2008 - - - - (118.88) -
Q2 2008 - - - - (198.25) -
Q3 2008 80.80 - (14.72) - (599.24) -
Q4 2008 424.40 - 31.18 - (783.35) -
Q1 2009 581.67 - 145.98 - (655.80) (451.6 %)
Q2 2009 701.52 - 132.59 - (706.46) (256.3 %)
Q3 2009 825.49 921.7 % 242.93 1750.0 % (668.17) (11.5 %)
Q4 2009 895.38 111.0 % 355.53 1040.2 % (436.49) 44.3 %
Q1 2010 1,094.23 88.1 % 384.34 163.3 % (435.29) 33.6 %
Q2 2010 1,450.41 106.8 % 608.03 358.6 % (314.45) 55.5 %
Q3 2010 1,661.95 101.3 % 712.13 193.1 % (235.17) 64.8 %
Q4 2010 1,727.78 93.0 % 825.94 132.3 % (178.67) 59.1 %
Q1 2011 1,484.22 35.6 % 716.02 86.3 % (233.11) 46.4 %
Q2 2011 1,704.65 17.5 % 923.22 51.8 % (143.80) 54.3 %
Q3 2011 1,794.81 8.0 % 870.12 22.2 % (221.60) 5.8 %
Q4 2011 1,715.39 (0.7 %) 690.82 (16.4 %) (212.97) (19.2 %)
Q1 2012 1,521.59 2.5 % 702.20 (1.9 %) (191.20) 18.0 %
Q2 2012 1,629.02 (4.4 %) 707.12 (23.4 %) (174.00) (21.0 %)
Q3 2012 1,529.90 (14.8 %) 711.62 (18.2 %) (304.79) (37.5 %)
Q4 2012 1,490.16 (13.1 %) 738.98 7.0 % (261.61) (22.8 %)
Q1 2013 1,719.40 13.0 % 776.23 10.5 % (232.94) (21.8 %)
Q2 2013 1,706.35 4.7 % 830.76 17.5 % (206.12) (18.5 %)
Q3 2013 1,573.32 2.8 % 760.98 6.9 % (239.00) 21.6 %
Q4 2013 1,523.52 2.2 % 766.88 3.8 % (271.26) (3.7 %)
Q1 2014 1,545.77 (10.1 %) 798.66 2.9 % (127.18) 45.4 %
Q2 2014 1,567.13 (8.2 %) 797.05 (4.1 %) (135.83) 34.1 %
Q3 2014 1,553.00 (1.3 %) 810.67 6.5 % (218.60) 8.5 %
Q4 2014 1,556.46 2.2 % 816.27 6.4 % (187.47) 30.9 %
Q1 2015 1,656.79 7.2 % 874.43 9.5 % (59.05) 53.6 %
Q2 2015 1,648.83 5.2 % 949.40 19.1 % 0.94 100.7 %
Q3 2015 1,763.73 13.6 % 1,062.18 31.0 % (0.89) 99.6 %
Q4 2015 1,672.03 7.4 % 1,065.09 30.5 % (82.42) 56.0 %
Q1 2016 1,764.88 6.5 % 1,085.55 24.1 % (32.03) 45.8 %
Q2 2016 1,727.40 4.8 % 1,112.80 17.2 % (108.29) (11620.3 %)
Q3 2016 1,633.76 (7.4 %) 1,060.63 (0.1 %) (1.97) (120.0 %)
Q4 2016 1,800.61 7.7 % 1,141.69 7.2 % 87.85 206.6 %
Q1 2017 1,919.05 8.7 % 1,290.99 18.9 % 272.70 951.5 %
Q2 2017 1,864.57 7.9 % 1,258.55 13.1 % 235.01 317.0 %
Q3 2017 1,806.56 10.6 % 1,230.87 16.1 % 228.95 11739.3 %


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2008 (543.59) - (2.47) - (125.33) (0.57)
Q2 2008 (153.65) - (0.70) - (153.65) (0.70)
Q3 2008 (649.04) - (2.95) - (649.04) (2.95)
Q4 2008 (931.90) - (4.23) - (931.90) (4.23)
Q1 2009 (765.37) (40.8 %) (3.47) - (765.37) (3.47)
Q2 2009 (856.66) (457.5 %) (3.89) - (856.66) (3.89)
Q3 2009 (819.73) (26.3 %) (3.72) - (819.73) (3.72)
Q4 2009 (657.59) 29.4 % (2.99) - (657.59) (2.99)
Q1 2010 (662.45) 13.4 % (3.01) - (662.45) (3.01)
Q2 2010 (631.59) 26.3 % (2.87) - (631.59) (2.87)
Q3 2010 (543.79) 33.7 % (2.47) - (543.79) (2.47)
Q4 2010 (520.61) 20.8 % (2.36) - (520.61) (2.36)
Q1 2011 (531.75) 19.7 % (2.41) - (531.75) (2.41)
Q2 2011 (448.18) 29.0 % (2.03) - (448.18) (2.03)
Q3 2011 (483.81) 11.0 % (2.20) - (483.81) (2.20)
Q4 2011 (461.46) 11.4 % (2.09) - (461.46) (2.09)
Q1 2012 (419.99) 21.0 % (1.91) - (419.99) (1.91)
Q2 2012 (393.64) 12.2 % (1.79) - (393.64) (1.79)
Q3 2012 (493.00) (1.9 %) (0.86) - (493.00) (0.86)
Q4 2012 (442.78) 4.0 % (0.77) - (442.78) (0.77)
Q1 2013 (397.95) 5.2 % (0.69) - (397.95) (0.69)
Q2 2013 (370.41) 5.9 % (0.65) - (370.41) (0.65)
Q3 2013 (420.81) 14.6 % (0.73) - (420.81) (0.73)
Q4 2013 (462.30) (4.4 %) (0.81) - (462.30) (0.81)
Q1 2014 (318.36) 20.0 % (0.56) - (318.36) (0.56)
Q2 2014 (328.94) 11.2 % (0.57) - (328.94) (0.57)
Q3 2014 (315.81) 25.0 % (0.55) - (400.81) (0.70)
Q4 2014 (306.46) 33.7 % (0.53) - (356.92) (0.62)
Q1 2015 (256.72) 19.4 % (0.45) - (256.72) (0.45)
Q2 2015 (201.16) 38.8 % (0.35) - (201.16) (0.35)
Q3 2015 (222.95) 29.4 % (0.39) - (222.95) (0.39)
Q4 2015 (291.11) 5.0 % (0.51) - (291.11) (0.51)
Q1 2016 (250.00) 2.6 % (0.44) - (250.00) (0.44)
Q2 2016 (328.30) (63.2 %) (0.57) - (328.30) (0.57)
Q3 2016 (266.11) (19.4 %) (0.46) - (266.11) (0.46)
Q4 2016 (134.13) 53.9 % (0.23) - (134.13) (0.23)
Q1 2017 45.47 118.2 % 0.08 - 45.47 0.08
Q2 2017 7.69 102.3 % 0.01 - 7.69 0.01
Q3 2017 3.41 101.3 % 0.01 - 3.41 0.01

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2008 - - -
Q2 2008 - - -
Q3 2008 - - -
Q4 2008 - - -
Q1 2009 - - -
Q2 2009 16.50 % (92.47 %) (179.10 %)
Q3 2009 21.82 % (58.30 %) (133.18 %)
Q4 2009 29.19 % (35.71 %) (103.17 %)
Q1 2010 31.72 % (23.12 %) (85.21 %)
Q2 2010 37.30 % (8.97 %) (64.97 %)
Q3 2010 40.38 % 1.01 % (48.91 %)
Q4 2010 42.64 % 5.57 % (39.74 %)
Q1 2011 45.26 % 8.77 % (35.22 %)
Q2 2011 48.30 % 11.75 % (31.08 %)
Q3 2011 49.70 % 12.64 % (29.57 %)
Q4 2011 47.77 % 13.42 % (28.74 %)
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 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2008 220.28 - - 61.09
Q2 2008 220.28 - - 60.39
Q3 2008 220.28 - - 57.44
Q4 2008 220.28 (10.34) (8.44) 53.21
Q1 2009 220.28 (11.35) (11.35) 49.74
Q2 2009 220.28 (14.54) (14.54) 45.85
Q3 2009 220.28 (15.32) (15.32) 42.13
Q4 2009 220.28 (14.07) (14.07) 39.14
Q1 2010 220.28 (13.60) (13.60) 36.14
Q2 2010 220.28 (12.58) (12.58) 33.27
Q3 2010 220.28 (11.33) (11.33) 29.90
Q4 2010 220.28 (10.71) (10.71) 27.83
Q1 2011 220.28 (10.11) (10.11) 25.58
Q2 2011 220.28 (9.28) (9.28) 23.62
Q3 2011 220.28 (9.01) (9.01) 21.58
Q4 2011 220.28 (8.74) (8.74) 19.49
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

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2008 - - 4.80
Q2 2008 - - 6.26
Q3 2008 - - 5.04
Q4 2008 NEG NEG 3.09
Q1 2009 NEG NEG 3.20
Q2 2009 NEG NEG 3.95
Q3 2009 NEG NEG 3.99
Q4 2009 NEG NEG 4.00
Q1 2010 NEG NEG 4.16
Q2 2010 NEG NEG 3.92
Q3 2010 NEG NEG 4.08
Q4 2010 NEG NEG 4.30
Q1 2011 NEG NEG 4.16
Q2 2011 NEG NEG 4.51
Q3 2011 NEG NEG 4.47
Q4 2011 NEG NEG 4.39
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

Analysts Estimates (Million)

Item Q3 2017 (e) Q3 2017 (a) Change‬
Average 9.52 3.41 (64.2 %)

Estimates vs Actual (Million)

Item Q3 2017 (e) Q3 2017 (a) Change
SNB Capital 11.30 3.41 (69.9) %
Albilad Capital 15.00 3.41 (77.3) %
AlJazira Capital 32.30 3.41 (89.5) %
Riyad Capital (7.00) 3.41 148.6 %
Al Rajhi Capital (4.00) 3.41 185.1 %

Current
Market Cap (M Riyal) 9,886.03
Enterprise Value (EV) (M) 17,051.04
Shares Outstanding ((M)) 898.73
EPS ( Riyal) (TTM) 0.45
Book Value (BV) ( Riyal) 11.48
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 46.84
P/E (TTM) 24.59
Price/book 0.96
Return on Average Assets (%) (TTM) 1.5
Return on Average Equity (%) (TTM) 3.8

Share Price

Mobile Telecommunication Company Saudi Arabia (ZAIN KSA)


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