Mobile Telecommunication Company Saudi Arabia “Zain KSA” announces its Annual Consolidated Financial Results for the Year Ending on 2021-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 7,901 | 7,917 | -0.202 | ||
| Gross Profit (Loss) | 4,885 | 5,445 | -10.284 | ||
| Operational Profit (Loss) | 699 | 1,002 | -30.239 | ||
| Net Profit (Loss) after Zakat and Tax | 214 | 260 | -17.692 | ||
| Total Comprehensive Income | 310 | 182 | 70.329 | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 9,040 | 8,729 | 3.562 | ||
| Profit (Loss) per Share | 0.238 | 0.379 | |||
| 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 continues to record net profit for 5 years in a row despite the outbreak of Covid-19.
Zain KSA recorded a net profit of SAR 214 million for the year ended 2021 as compared to a net profit of SAR 260 million in 2020, resulting a net decrease in the net profit by 17.56%.
The reason for the decrease in the net profit is mainly due to:
- The revenue was almost stable despite the cumulative impact of the pandemic which led to a minimal number of visitors for Umrah; whereby it was compensated by the growth in B2B and 5G revenues.
- The cost of revenue has increased by 22%, which results in decrease of the gross profit by a cumulative impact of 10.28%. This increase in cost is the result of the release of certain provisions in 2020 amounting SAR 484 million.
- Despite the above; The company managed to partially absorb the negative impact on the net profit by decreasing Opex by SAR 247 million.
-Finance cost decreased by SR 409 million due to the decrease in Sibor and Libor as well as from the restructure of debts in Q4 2020 and Q1 2021 despite the gain of MFA modification booked in Q3 2020 amounting SAR 136 million |
| Statement of the type of external auditor's report | Unmodified opinion |
| Reclassification of Comparison Items | NA |
| Additional Information | For the first time, Zain KSA recorded retained earnings of SAR 139 million.
During the prior years, Zain fulfilled all its obligations towards the Settlement of the disputed amounts between the company and CITC regarding the payment of disputed annual royalty fee for the period from 2009 to 2017; whereby the agreement had positive financial implications on the company. In early 2022, Zain received the final clearance regarding this settlement.
Total capex investment for the full year 2021 was SAR 1 billion, to further expand the 5G network, enhance the quality of services provided to customers. |
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