Zain KSA 2024 profit down 53% to SAR 596M; Q4 at SAR 274M

Mobile Telecommunication Company Saudi Arabia (Zain KSA) reported a net profit of SAR 596 million for 2024, a decline of 53% from SAR 1.26 billion in the prior year.

Gain from the sale and leaseback of all 8,069 towers was fully recognized during 2023 for a total amount of SAR 1.1 billion, the telecom operator noted, adding that the profit decline was also driven by a 2.5% or SAR 66 million increase in operating expenses and a SAR 203 million rise in expected credit loss expenses.

On the other hand, Zain KSA achieved lifetime high revenues of SAR 10.4 billion in 2024, a 5% growth compared to 2023 (SAR 9.9 billion). This increase in revenue was driven by the growth in 5G, wholesale, TAMAM and B2B segments.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by SAR 345 million (11.6%) to SAR 3.32 billion in 2024 as compared to SAR 2.97 billion in 2023.

Zakat decreased by SAR 131 million due to the new regulations. Zain KSA reassessed its Zakat provision and consequently reversed additional provision charged in prior periods during 2024 for an amount of SAR 76 million.

The telco posted net earnings of SAR 274 million in Q4 2024, against a loss of SAR 54 million in Q4 2023.

Compared with the previous quarter, net profit jumped 82.4% from SAR 150.27 million in Q3 2024.

Shareholders' equity, no minority interest, amounted to SAR 10.7 billion as of Dec. 31, 2024, compared to SAR 10.59 billion a year earlier.

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