Mobile Telecommunication Company Saudi Arabia (Zain KSA) announces its Interim Financial Results for the Period Ending on 2022-06-30 ( Six Months )

17 July 2022 08:11 AM

ZAIN KSA 7030 -12.30% 12.12 -1.70

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	2,206	1,896	16.35	2,179	1.24
Gross Profit (Loss)	1,251	1,259	-0.64	1,236	1.21
Operational Profit (Loss)	262	159	64.78	201	30.35
Net Profit (Loss) after Zakat and Tax	134	42	219.05	81	65.43
Total Comprehensive Income	177	55	221.82	198	-10.61
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	4,385	3,833	14.4
Gross Profit (Loss)	2,486	2,474	0.48
Operational Profit (Loss)	463	317	46.06
Net Profit (Loss) after Zakat and Tax	214	83	157.83
Total Comprehensive Income	376	102	268.63
Total Share Holders Equity (after Deducting Minority Equity)	9,415	8,831	6.61
Profit (Loss) per Share	0.24	0.09
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	Zain KSA reported a 219% increase in net profit in Q2 2022 compared to Q2 2021, by recording a net profit of SR 134 million in Q2 2022, compared to SR 42 million in Q2 2021. This is due to the increase in revenue by 16%, driven by the growth in B2B, 5G, and the return of international visitors (for Umrah and business) after relaxing the COVID pandemic restrictions; despite the increase in cost of revenue by 50%, amounting SR 318 million, out of which SR 41 million were related to the reversal of provision released in Q2 2021. Opex decreased by SR 10 million while the amortization and depreciation decreased by SR 101 million further to the announced disposal plan of the telecom towers. Financial cost increased by SR 7 million due to Sibor/Libor increase.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is	Zain KSA recorded an increase in net profit by 65% in Q2 2022 compared to Q1 2022 due to the increase in revenue by 1% driven by the growth in B2B, 5G and the return of international visitors (for Umrah and business), despite the increase in cost of sales by 1%, amounting SR 12 million. Opex decreased by SR 29 million and depreciation and amortization expenses decreased by SR 17 million, related mainly to the disposal plan of the telecom towers announced in February 2022.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	Zain KSA’s net profit increased by 158% in H1 2022 compared to H1 2021 due to the increase of revenue by 14%, driven by the growth in B2B, 5G and the return of International visitors (for Umrah and business) despite the increase of Cost of Sales by 40% amounting to SR 538 million. Opex also increased by 2%, amounting to SR 23 million. This has been offset by a decrease in depreciation and amortization by SR 157 million further to the announced disposal plan of the telecom towers.
Statement of the type of external auditor's report	Unmodified conclusion
Reclassification of Comparison Items	NA
Additional Information	Total capex investment for the first half of 2022 was SR 296 Million, to further enhance the quality of services provided to customers.

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