Mobile Telecommunication Company Saudi Arabia (Zain KSA) reported a net profit after Zakat and tax of SAR 260 million in 2020, a fall of 46% from a net profit of SAR 485.2 million a year earlier.
The profit drop was attributed a decline in revenue by 5.6% year-on-year (YoY) due to the cumulative impact of the pandemic, which led to a minimal number of visitors for Umrah, limiting Hajj to local pilgrims, in addition to the reduction of mobile termination rate in the second half of 2020.
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Revenues | 8,386.23 | 7,916.55 | (5.6 %) |
| Gross Income | 5,968.51 | 5,444.64 | (8.8 %) |
| Operating Income | 1,758.30 | 1,001.96 | (43.0 %) |
| Net Income | 485.18 | 259.95 | (46.4 %) |
| Average Shares | 573.22 | 898.73 | 56.8 % |
| EPS (Riyals) | 0.85 | 0.29 | (65.8 %) |
Moreover, the cost of revenue increased by 2.2% YoY. The company managed to partially absorb negative impact on the net profit by decreasing operating expenses by SAR 136 million. Depreciation and amortization increased by SAR 128 million.
The fourth-quarter net profit plunged 66% YoY to SAR 36 million.
| Item | Q4 2019 | Q4 2020 | Change |
|---|---|---|---|
| Revenues | 2,227.90 | 2,060.88 | (7.5 %) |
| Gross Income | 1,469.37 | 1,350.59 | (8.1 %) |
| Operating Income | 430.27 | 210.32 | (51.1 %) |
| Net Income | 104.96 | 35.95 | (65.8 %) |
| Average Shares | 573.22 | 898.73 | 56.8 % |
| EPS (Riyals) | 0.18 | 0.04 | (78.2 %) |
| Item | Q3 2020 | Q4 2020 | Change |
|---|---|---|---|
| Revenues | 1,927.59 | 2,060.88 | 6.9 % |
| Gross Income | 1,265.93 | 1,350.59 | 6.7 % |
| Operating Income | 138.27 | 210.32 | 52.1 % |
| Net Income | 60.17 | 35.95 | (40.3 %) |
| Average Shares | 573.22 | 898.73 | 56.8 % |
| EPS (Riyals) | 0.10 | 0.04 | (61.9 %) |
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