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

30/01/2022 Argaam Exclusive

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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.

Financials (M)

Item	2020	2021	Change‬
Revenues	7,916.55	7,900.65	(0.2 %)
Gross Income	5,444.64	4,884.60	(10.3 %)
Operating Income	1,001.96	698.74	(30.3 %)
Net Income	259.95	214.30	(17.6 %)
Average Shares	898.73	898.73	-
EPS (Riyals)	0.29	0.24	(17.6 %)

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.

Current Quarter Comparison (M)

Compared With The

Item	Q4 2020	Q4 2021	Change‬
Revenues	2,060.88	2,083.10	1.1 %
Gross Income	1,350.59	1,166.17	(13.7 %)
Operating Income	210.32	192.98	(8.2 %)
Net Income	35.95	71.40	98.6 %
Average Shares	898.73	898.73	-
EPS (Riyals)	0.04	0.08	98.6 %

Item	Q3 2021	Q4 2021	Change‬
Revenues	1,984.17	2,083.10	5.0 %
Gross Income	1,244.06	1,166.17	(6.3 %)
Operating Income	188.33	192.98	2.5 %
Net Income	60.39	71.40	18.2 %
Average Shares	898.73	898.73	-
EPS (Riyals)	0.07	0.08	18.2 %

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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