Zain KSA H1 net profit slumps 86% to SAR 172M, Q2 at SAR 105M

25/07/2024 Argaam Exclusive

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Mobile Telecommunication Company Saudi Arabia (Zain KSA) reported a net profit of SAR 172 million in H1 2024, a plunge of 86% from SAR 1.25 billion in the year earlier period.



Financials (M)

Item 6m 2023 6m 2024 Change‬
Revenues 4,814.54 5,087.00 5.7 %
Gross Income 2,898.48 3,086.00 6.5 %
Operating Income 444.00 492.00 10.8 %
Net Income 1,251.00 172.00 (86.3 %)
Average Shares 898.73 898.73 -
EPS (Riyals) 1.39 0.19 (86.3 %)

The telco said its financing costs increased by SAR 26.5 million due to higher LIBOR and SAIBOR.

 

However, Zain KSA’s H1 2024 revenue rose 5.67% year-on-year (YoY) due to the growth in 5G services, B2B sales, wholesale, and Hajj season, in addition to the growth in “Tamam” business. 

  

Q2 2024 net profit declined 8% YoY to SAR 105 million as operating expenses rose 6% YoY and expected credit loss (ECL) costs increased by SAR 33 million. Cost of finance increased by SAR 20 million due to higher SAIBOR and LIBOR. 

 

Meanwhile, the company recorded a one-time government grant income at SAR 52 million related to the closure of a project. 



Current Quarter Comparison (M)

Compared With The
Item Q2 2023 Q2 2024 Change‬
Revenues 2,392.38 2,552.00 6.7 %
Gross Income 1,483.64 1,540.00 3.8 %
Operating Income 253.00 242.00 (4.3 %)
Net Income 114.00 105.00 (7.9 %)
Average Shares 898.73 898.73 -
EPS (Riyals) 0.13 0.12 (7.9 %)
On a quarterly basis, net earnings jumped 57.9% from SAR 66.51 million in Q1 2024. 
 
Total shareholders’ equity, no minority interest, reached SAR 10.31 billion by June 30, 2024, compared to SAR 10.61 billion in prior-year period.

View More Financial Results

 


Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
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 %
Q4 2017 1,715.65 (4.7 %) 1,132.61 (0.8 %) 166.58 89.6 %
Q1 2018 1,685.97 (12.1 %) 1,117.37 (13.4 %) 180.33 (33.9 %)
Q2 2018 1,846.43 (1.0 %) 1,161.96 (7.7 %) 211.14 (10.2 %)
Q3 2018 1,951.88 8.0 % 1,320.57 7.3 % 307.34 34.2 %
Q4 2018 2,046.24 19.3 % 1,824.66 61.1 % 674.60 305.0 %
Q1 2019 2,093.49 24.2 % 1,480.38 32.5 % 431.78 139.4 %
Q2 2019 2,056.76 11.4 % 1,523.73 31.1 % 446.05 111.3 %
Q3 2019 2,008.08 2.9 % 1,495.03 13.2 % 450.21 46.5 %
Q4 2019 2,227.90 8.9 % 1,469.37 (19.5 %) 430.27 (36.2 %)
Q1 2020 2,038.87 (2.6 %) 1,473.43 (0.5 %) 356.71 (17.4 %)
Q2 2020 1,889.22 (8.1 %) 1,354.69 (11.1 %) 296.67 (33.5 %)
Q3 2020 1,927.59 (4.0 %) 1,265.93 (15.3 %) 138.27 (69.3 %)
Q4 2020 2,060.88 (7.5 %) 1,350.59 (8.1 %) 210.32 (51.1 %)
Q1 2021 1,937.51 (5.0 %) 1,215.51 (17.5 %) 158.08 (55.7 %)
Q2 2021 1,895.86 0.4 % 1,258.86 (7.1 %) 159.35 (46.3 %)
Q3 2021 1,984.17 2.9 % 1,244.06 (1.7 %) 188.33 36.2 %
Q4 2021 2,083.10 1.1 % 1,166.17 (13.7 %) 192.98 (8.2 %)
Q1 2022 2,178.58 12.4 % 1,235.91 1.7 % 201.13 27.2 %
Q2 2022 2,206.10 16.4 % 1,250.81 (0.6 %) 238.65 49.8 %
Q3 2022 2,286.62 15.2 % 1,376.35 10.6 % 246.48 30.9 %
Q4 2022 2,403.87 15.4 % 1,452.31 24.5 % 379.43 96.6 %
Q1 2023 2,422.16 11.2 % 1,414.84 14.5 % 191.17 (5.0 %)
Q2 2023 2,392.38 8.4 % 1,483.64 18.6 % 253.00 6.0 %
Q3 2023 2,525.34 10.4 % 1,481.49 7.6 % 331.47 34.5 %
Q4 2023 2,542.77 5.8 % 1,477.29 1.7 % 108.00 (71.5 %)
Q1 2024 2,535.18 4.7 % 1,545.17 9.2 % 250.73 31.2 %
Q2 2024 2,552.00 6.7 % 1,540.00 3.8 % 242.00 (4.3 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
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
Q4 2017 (45.02) 66.4 % (0.08) - (45.02) (0.08)
Q1 2018 (77.33) (270.1 %) (0.13) - (77.33) (0.13)
Q2 2018 (37.57) (588.4 %) (0.07) - (37.57) (0.07)
Q3 2018 48.01 1309.8 % 0.08 - 48.01 0.08
Q4 2018 399.26 986.8 % 0.70 - 399.26 0.70
Q1 2019 129.31 267.2 % 0.23 - 129.31 0.23
Q2 2019 130.20 446.5 % 0.23 - 130.20 0.23
Q3 2019 120.71 151.5 % 0.21 - 120.71 0.21
Q4 2019 104.96 (73.7 %) 0.18 - 104.96 0.18
Q1 2020 105.22 (18.6 %) 0.18 - 105.22 0.18
Q2 2020 58.61 (55.0 %) 0.10 - 58.61 0.10
Q3 2020 60.17 (50.2 %) 0.10 - (76.09) (0.13)
Q4 2020 35.95 (65.8 %) 0.04 - 35.95 0.04
Q1 2021 40.87 (61.2 %) 0.05 - 40.87 0.05
Q2 2021 41.65 (28.9 %) 0.05 - 41.65 0.05
Q3 2021 60.39 0.4 % 0.07 - 60.39 0.07
Q4 2021 71.40 98.6 % 0.08 - 71.40 0.08
Q1 2022 80.52 97.0 % 0.09 - 80.52 0.09
Q2 2022 133.83 221.3 % 0.15 - 133.83 0.15
Q3 2022 85.15 41.0 % 0.09 - 85.15 0.09
Q4 2022 250.18 250.4 % 0.28 - 208.28 0.23
Q1 2023 1,137.22 1312.4 % 1.27 1,143.75 (6.53) (0.01)
Q2 2023 114.00 (14.8 %) 0.13 - 114.00 0.13
Q3 2023 284.57 234.2 % 0.32 139.00 145.57 0.16
Q4 2023 (54.00) (121.6 %) (0.06) - (54.00) (0.06)
Q1 2024 66.51 (94.2 %) 0.07 - 66.51 0.07
Q2 2024 105.00 (7.9 %) 0.12 52.00 53.00 0.06

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
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 %)
Q4 2017 67.25 % 34.45 % 0.16 %
Q1 2018 67.01 % 34.79 % (1.57 %)
Q2 2018 65.81 % 35.09 % (2.22 %)
Q3 2018 65.73 % 36.27 % (1.55 %)
Q4 2018 72.03 % 42.01 % 4.41 %
Q1 2019 72.91 % 44.85 % 6.79 %
Q2 2019 75.47 % 48.22 % 8.67 %
Q3 2019 77.08 % 51.02 % 9.50 %
Q4 2019 71.17 % 48.53 % 5.79 %
Q1 2020 71.55 % 48.06 % 5.53 %
Q2 2020 70.95 % 47.63 % 4.77 %
Q3 2020 68.82 % 44.93 % 2.38 %
Q4 2020 68.78 % 43.47 % 1.56 %
Q1 2021 66.37 % 41.43 % 0.76 %
Q2 2021 65.09 % 39.66 % 0.54 %
Q3 2021 64.34 % 39.87 % 2.27 %
Q4 2021 61.83 % 39.60 % 2.71 %
Q1 2022 60.25 % 38.27 % 3.12 %
Q2 2022 57.94 % 36.88 % 4.10 %
Q3 2022 57.45 % 34.97 % 4.24 %
Q4 2022 58.57 % 34.76 % 5.60 %
Q1 2023 58.96 % 33.60 % 4.51 %
Q2 2023 60.25 % 33.18 % 4.22 %
Q3 2023 59.86 % 33.36 % 4.73 %
Q4 2023 59.27 % 30.26 % 2.01 %
Q1 2024 59.90 % 30.65 % 2.72 %
Q2 2024 59.52 % - 2.08 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
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
Q4 2017 573.22 0.02 0.02 6.22
Q1 2018 573.22 (0.19) (0.19) 6.31
Q2 2018 573.22 (0.27) (0.27) 6.22
Q3 2018 573.22 (0.20) (0.20) 6.33
Q4 2018 573.22 0.58 0.58 7.00
Q1 2019 573.22 0.94 0.94 6.60
Q2 2019 573.22 1.23 1.23 6.75
Q3 2019 573.22 1.36 1.36 6.92
Q4 2019 573.22 0.85 0.85 7.16
Q1 2020 573.22 0.80 0.80 7.22
Q2 2020 573.22 0.68 0.68 7.31
Q3 2020 573.22 0.57 0.34 7.40
Q4 2020 898.73 0.29 0.14 9.71
Q1 2021 898.73 0.22 0.07 9.79
Q2 2021 898.73 0.20 0.05 9.83
Q3 2021 898.73 0.20 0.20 9.93
Q4 2021 898.73 0.24 0.24 10.06
Q1 2022 898.73 0.28 0.28 10.28
Q2 2022 898.73 0.39 0.39 10.48
Q3 2022 898.73 0.41 0.41 10.63
Q4 2022 898.73 0.61 0.56 10.91
Q1 2023 898.73 1.79 0.47 12.17
Q2 2023 898.73 1.77 0.45 11.81
Q3 2023 898.73 1.99 0.51 11.51
Q4 2023 898.73 1.65 0.22 11.78
Q1 2024 898.73 0.46 0.30 11.86
Q2 2024 898.73 0.45 0.23 11.48

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
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
Q4 2017 More than 100 More than 100 1.88
Q1 2018 NEG NEG 1.81
Q2 2018 NEG NEG 1.71
Q3 2018 NEG NEG 1.57
Q4 2018 22.77 22.77 1.89
Q1 2019 18.68 18.68 2.66
Q2 2019 16.19 16.19 2.96
Q3 2019 14.07 14.07 2.76
Q4 2019 22.14 22.14 2.62
Q1 2020 18.84 18.84 2.10
Q2 2020 26.64 26.64 2.48
Q3 2020 37.72 64.40 2.92
Q4 2020 47.02 98.82 1.40
Q1 2021 68.93 More than 100 1.53
Q2 2021 73.15 More than 100 1.48
Q3 2021 70.35 70.35 1.41
Q4 2021 50.49 50.49 1.20
Q1 2022 47.14 47.14 1.30
Q2 2022 29.18 29.18 1.07
Q3 2022 27.77 27.77 1.08
Q4 2022 16.45 17.81 0.92
Q1 2023 7.27 27.77 1.07
Q2 2023 8.02 31.74 1.20
Q3 2023 6.62 25.64 1.14
Q4 2023 8.54 63.57 1.19
Q1 2024 27.59 41.69 1.06
Q2 2024 26.38 50.24 1.03

Business Segments (Million)

Compared With The
Period Mobile Telecommunications Company Zain Sales Zain Payments Zain Drones Eliminations
Q1 2018 1,685.97 - - - -
Q2 2018 1,846.43 - - - -
Q3 2018 1,951.89 - - - -
Q4 2018 2,046.24 - - - -
Q1 2019 2,016.32 679.91 - - (602.74)
Q2 2019 1,978.29 670.22 - - (591.75)
Q3 2019 1,923.51 682.16 - - (597.59)
Q4 2019 2,166.58 842.50 0.02 - (781.19)
Q1 2020 1,949.70 599.58 0.02 - (510.44)
Q2 2020 1,848.49 520.83 0.08 - (480.18)
Q3 2020 1,857.34 627.02 0.12 - (556.90)
Q4 2020 1,985.05 612.51 0.51 - (537.19)
Q1 2021 1,898.99 483.70 1.99 - (447.17)
Q2 2021 1,861.58 409.30 2.15 - (377.17)
Q3 2021 1,946.62 510.56 4.34 - (477.34)
Q4 2021 2,050.20 452.99 7.13 1.25 (428.47)
Q1 2022 2,134.13 394.10 10.43 - (360.07)
Q2 2022 2,140.45 494.49 23.33 - (452.17)
Q3 2022 2,211.37 351.65 39.93 - (316.33)
Q4 2022 2,311.89 385.36 53.21 1.12 (347.71)
Q1 2023 2,318.24 349.84 67.42 0.03 (313.37)
Q2 2023 2,289.60 323.79 72.33 (0.28) (293.06)
Q3 2023 2,423.20 285.66 74.95 0.11 (258.58)
Q4 2023 2,456.96 311.92 68.88 0.02 (295.02)
Q1 2024 2,430.90 228.32 82.48 - (206.52)

Analysts Estimates (Million)

Item Q2 2024 (e) Q2 2024 (a) Change‬
Average 77.99 105.00 34.63 %

Estimates vs Actual (Million)

Item Q2 2024 (e) Q2 2024 (a) Change
Goldman Sachs 107.85 105.00 (2.6) %
Arqaam Capital 84.00 105.00 25.0 %
UBS Saudi Arabia 82.86 105.00 26.7 %
Riyad Capital 81.00 105.00 29.6 %
Al Rajhi Capital 77.00 105.00 36.4 %
AlJazira Capital 72.00 105.00 45.8 %
Hermes 70.00 105.00 50.0 %
United Securities Company 65.00 105.00 61.5 %
SNB Capital 62.20 105.00 68.8 %


Financial Ratios
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
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Share Price

Mobile Telecommunication Company Saudi Arabia
11.00
(0.34) (3.00 %)

Mobile Telecommunication Company Saudi Arabia (ZAIN KSA)

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Quarterly Actuals vs Estimates 25/07/2024

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