Riyadh – Mubasher: Mobile Telecommunication Company Saudi Arabia (Zain) reported turning a profit during the second quarter of 2019.

Zain’s net profits stood at SAR 130 million in Q2-19, against a loss of SAR 38 million in Q2-18, according to the company’s filing to the Saudi Stock Exchange (Tadawul) on Sunday.

The Saudi telecom provider generated revenues worth SAR 2.05 billion during the three-month period between April and June.

The company attributed the positive turn in its second-quarter financials to the increasing demand for the company’s products and services, in addition to the decrease in CITC royalty fees from 15% to 10% and from the release of a certain provision from the settlement signed with MOF, MCIT and CITC.

By the end of June, Zain’s gross profit increased by SAR 362 million to 1.5 billion, compared to SAR 1.16 billion in Q2-18.

“This increase in gross profit was partially offset by an increase in operating and administrative expenses (excluding the reclassification of IFRS 16 amounting SAR 122 million) mainly due to the additional spend in technology and marketing,” Zain said.

On the other hand, the company posted turning a profit during the first half of 2019, recording SAR 260 million.