Mobile Telecommunication Company Saudi Arabia (Zain KSA) announces its Interim Financial Results for the Period Ending on 2023-06-30 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 2,392 | 2,206 | 8.43 | 2,422 | -1.24 |
| Gross Profit (Loss) | 1,484 | 1,251 | 18.62 | 1,415 | 4.88 |
| Operational Profit (Loss) | 260 | 262 | -0.76 | 201 | 29.35 |
| Net Profit (Loss) after Zakat and Tax | 124 | 134 | -7.46 | 563 | -77.97 |
| Total Comprehensive Income | 141 | 177 | -20.34 | 557 | -74.69 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 4,815 | 4,385 | 9.81 |
| Gross Profit (Loss) | 2,898 | 2,487 | 16.52 |
| Operational Profit (Loss) | 461 | 463 | -0.43 |
| Net Profit (Loss) after Zakat and Tax | 687 | 214 | 221.03 |
| Total Comprehensive Income | 698 | 376 | 85.64 |
| Total Share Holders Equity (after Deducting Minority Equity) | 10,048 | 9,415 | 6.72 |
| Profit (Loss) per Share | 0.76 | 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 quarter compared to the same quarter of the last year is | Zain KSA (the company) achieved a net profit of SAR 124 million for the three month period ended 30 June 2023 compared to SAR 134 million in the same period of 2022, a 7.46% decrease.
The company gross profit increased by SAR 233 million compared to the same period in 2022, mainly due to the following: - An increase in Net Revenue by SAR 186 million, or 8.43% compared to the same period of 2022. This increase was due to the growth in B2B, 5G, digital products and Tamam.
- The cost of revenue has decreased by 4.81%.
- The OPEX increased by SAR 190 million, mainly admin cost by SAR 25 million and maintenance cost by SAR 124 million, due to restructuring cost of the company further to the Tower-Co sale and leaseback. The ECL expense increased by SAR 10 million
- Finance costs increased by SAR 36 million due to the increase in SAIBOR and LIBOR.
- Finance income increased by SAR 13 million on the amounts placed as FDs with banks. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is | Zain KSA recorded of Net Profit of SAR124 million in Q2 2023 compared to SAR563 million in Q1 2023, a decrease by SAR 439 million due to the following:
- Net gain on sale and leaseback of 3,600 towers to GLI of SAR 532 million recognized in Q1 2023, excluding any related increase in Zakat, while there was no sites transfer in Q2 2023. - Decrease in revenue by SAR 30 million while the cost of revenue has decreased by SAR 102 million resulting in an increase in gross profit by SAR 69 million.
- Decrease in OPEX by SAR 22 million - Decrease in Finance costs by SAR 5 million |
| 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 achieved a net profit of SAR 687 million for the six-month period ended 30 June 2023 compared to SAR 214 million in the same period of 2022, a 221% increase.
The company gross profit increased by SAR 411 million compared to the same period in 2022, mainly due to the following: - An increase in Net Revenue by SAR 430 million, or 9.81% compared to the same period of 2022. This increase was due to the growth in B2B, 5G, digital products and Tamam. - The cost of revenue has increased by SAR 19 million, or 0.95%. - OPEX increased by SAR 380 million, mainly admin cost by SAR 23 million and maintenance cost by SAR 220 million and the ECL expense increased by SAR 16 million -Finance costs increased by SAR 86 million due to the increase in SAIBOR and LIBOR. - Finance income increased by SAR 36 million on the amounts placed as FDs with banks. - Net Gain on sale and leaseback of 3,600 towers to GLI in Q1 2023 of SAR 532 million, excluding any related increase in Zakat. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Reclassification of Comparison Items | Certain comparatives figures have been reclassified and adjusted to conform with the presentation in the current period. There is no impact on interim condensed consolidated statement of profit or loss. |
| Additional Information | The total CAPEX investment for Q2 2023 was SAR 62 million to enhance customer service quality further.
In June 2023, the company paid to MOF SAR 572 Million and its relevant interest.
During the period, the company conducted a comprehensive assessment of IFRS 16 compliance and reassessed the right of use assets, right of use assets classified under held for sale, lease liabilities and lease liabilities directly associated with assets under held for sale. The company has accordingly restated prior period statements and the auditor’s qualification has been removed. |
| Attached Documents |  |
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