Mobile Telecommunication Company Saudi Arabia “Zain KSA” announces its Annual Consolidated Financial Results for the Year Ending on 2022-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 9,075 | 7,901 | 14.86 | ||
| Gross Profit (Loss) | 5,315 | 4,885 | 8.8 | ||
| Operational Profit (Loss) | 1,089 | 699 | 55.79 | ||
| Net Profit (Loss) after Zakat and Tax | 550 | 214 | 157.01 | ||
| Total Comprehensive Income | 760 | 310 | 145.16 | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 9,800 | 9,040 | 8.41 | ||
| Profit (Loss) per Share | 0.61 | 0.24 | |||
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | Zain KSA achieved the highest net profit in its history, reaching a record SAR 550 million for the year ended 2022 compared to SAR 214 million in 2021, a 157% increase.
The reason for the increase in the net profit is mainly due to the following: - Achieving the highest revenues in the “Zain KSA” history, amounting to SAR 9.1 billion for 2022, a 15% increase compared to 2021 revenues (SAR 7.9 billion). This increase was due to the growth in B2B, 5G revenues, and the return of international visitors (for Umrah and business) after relaxing the COVID pandemic restrictions, in addition the growth in Tamam revenue. - The cost of revenue has increased by 25%. Nonetheless, the gross profit increased by SAR431 Million or 9%. - OPEX increased by SAR404 million while the amortization and depreciation decreased by SAR 364 million due to the reclassification of the tower's assets to assets held for sale concerning the announced disposal plan of the telecom towers. -Finance costs increased by SAR 85 million due to the increase in SAIBOR and LIBOR. |
| Statement of the type of external auditor's report | Qualified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | As at 31 December 2022, the consolidated financial statements included ‘Right of use assets’ amounting to SR 790 million (2021: SR 1,331 million), ‘Lease liabilities’ of SR 680 million (2021: SR 1,472 million), ‘Amortization of right of use assets’ of SR 195 million (2021: SR 416 million), ‘Finance cost’ of SR 76 million (2021: SR 73 million), and ‘Right of use assets - held for sale’ and ‘Lease liabilities - held for sale’ of SR 1,000 million and SR 802 million respectively. We were unable to obtain sufficient appropriate audit evidence about the carrying amount of ‘Right of use assets’, ‘Lease liabilities’, and ‘Right of use assets - held for sale’ and ‘Lease liabilities - held for sale’ as at 31 December 2022 and 31 December 2021 and related ‘Amortization of right of use assets’ and ‘Finance cost’ for the year ended 31 December 2022 and prior years, because of the unavailability of auditable information as of the date of our report. Consequently, we are not able to conclude whether any adjustments to the consolidated financial statements and related disclosures may have been necessary for the years ended 31 December 2022 and 31 December 2021 and prior years. |
| Reclassification of Comparison Items | NA |
| Additional Information | The total CAPEX investment for 2022 was SAR 915 million to enhance customer service quality further. |
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