Mobile Telecommunication Company Saudi Arabia (Zain) announces its interim Financial results for the period ending on 2018-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 1,952 | 1,807 | 8.024 | 1,846 | 5.742 |
| Total Profit (Loss) | 1,336 | 1,231 | 8.529 | 1,193 | 11.986 |
| Profit (Loss) Operational | 268 | 229 | 17.03 | 179 | 49.72 |
| Net Profit (Loss) after Zakat and Tax | 48 | 3 | 1,500 | -38 | - |
| Total Comprehensive Income | 61 | 6 | 916.666 | -54 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 5,484 | 5,590 | -1.896 |
| Total Profit (Loss) | 3,686 | 3,780 | -2.486 |
| Profit (Loss) Operational | 591 | 737 | -19.81 |
| Net Profit (Loss) after Zakat and Tax | -67 | 57 | - |
| Total Comprehensive Income | -68 | 52 | - |
| Total Share Holders Equity (after deducting minority equity) | 3,626 | 3,611 | 0.415 |
| Profit (Loss) per Share | -0.12 | 0.1 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 2,199 | 5,837 | 37.6 |
| Element List | Explanation |
|---|---|
| Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year | Zain managed to substantially increase its net profit from SAR 3 million in Q3 2017 to SAR 48 million in Q3 2018 mainly due to the following reasons: - Increase in revenues by 8% amounting SAR 145 million generated from increasing demand for the company’s products and services which has reflected in an increase of SAR 106 million in the gross profit resulted, as well, from a one off release of certain provisions with a net impact of SAR 126 million. Without the decrease of the interconnection rates, the revenues would have grown by 10% for the current quarter. - Increase in other income by SAR 21 million following the finalization of the Universal Service Fund granted from the government. EBITDA has significantly improved to reach SAR 728 million; representing 37% of revenue; compared with SAR 631 million; representing 35% of revenue; for the same quarter of the previous year. EBIT has improved as well to reach SAR 268 million compared to SAR 229 million for the same quarter of the previous year. |
| Reason for increase (decrease) in net profit for current quarter compared to the previous quarter | The company recorded a net profit of SAR 48 million in Q3 2018 where the loss for the previous quarter was SAR 38 million. The reason for this improvement is mainly due to the following: - Increase in revenues by 6% amounting SAR 105 million mainly from Hajj season and increasing demand for the company’s products and services which has reflected in an increase of SAR 144 million in the gross profit, as well, from a one off release of certain provisions with a net impact of SAR 126 million resulted in an increase of SAR 89 million in EBIT - Increase in other income by SAR 13 million following the finalization of the Universal Service Fund granted from the government. |
| Reason for increase (decrease) in net profit for current period compared to the similar period of the previous year | A net loss of SAR 67 million for the first nine months of 2018 comparing to a net profit of SAR 57 million for the first nine months of 2017 mainly due to: - Decrease in revenues by 2% amounting SAR 106 million which reflected in a decrease in gross profit by 94 million, as well, from a one off release of certain provisions with a net impact of SAR 126 million. - Increase in depreciation and amortization by SAR 132 million as a result of acquiring spectrum and additional property equipment. Worth mentioning that the first quarter of 2018 generated SAR 77 million in losses which heavily impacted this year bottom line. |
| Type of the external auditor's opinion | Unmodified opinion |
| Reclassifications in quarter financial result | Certain comparatives figures have been reclassified to conform with the presentation in the current period. |
| Additional Information | The accumulated deficit reached SAR 2,199 million during current period representing 37.6% of its Share Capital of SAR 5,837 million compared to SAR 2,218 million same period of last year representing 38% of its Share Capital. Total assets acquisition for the nine-months ended 30 September 2018 is SAR 1,405 million. During the third quarter of 2018, the Company made an early voluntary payment for the Murabaha financing agreement amounting SAR 600 million which portrays the company’s solid cashflow generation. During the third quarter of 2018, the Company repaid SAR 134 million (1% License Fees) representing the outstanding amount till December 2017. |
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