Mobile Telecommunication Company Saudi Arabia (Zain Saudi) reported a net profit of SAR 105 million for the first quarter of 2020, a decline of 19% year-on-year (YoY), compared to SAR 129 million in the same period last year.
The company attributed the decline to decrease in revenue by 2.65% to SAR 55 million on the back of lower demand for low-margin products and services.
The telecom operator also cited higher operating expenses by SAR 5 million, expected credit loss by SAR 4 million, depreciation and amortization by SAR 9.5 million, and Zakat by SAR 5 million.
The company also released certain provisions in Q1 2020 with a net impact of SAR 133 million compared to SAR 107 million in Q1 2019.
| Item | Q1 2019 | Q1 2020 | Change |
|---|---|---|---|
| Revenues | 2,093.49 | 2,038.87 | (2.6 %) |
| Gross Income | 1,480.38 | 1,473.43 | (0.5 %) |
| Operating Income | 431.78 | 356.71 | (17.4 %) |
| Net Income | 129.31 | 105.22 | (18.6 %) |
| Average Shares | 573.22 | 573.22 | - |
| EPS (Riyals) | 0.23 | 0.18 | (18.6 %) |
| Item | Q4 2019 | Q1 2020 | Change |
|---|---|---|---|
| Revenues | 2,227.90 | 2,038.87 | (8.5 %) |
| Gross Income | 1,469.37 | 1,473.43 | 0.3 % |
| Operating Income | 430.27 | 356.71 | (17.1 %) |
| Net Income | 104.96 | 105.22 | 0.3 % |
| Average Shares | 573.22 | 573.22 | - |
| EPS (Riyals) | 0.18 | 0.18 | 0.3 % |
When compared to the previous quarter, net profit remained unchanged despite the lower revenues amounting to SAR 189 million on the back of decreased demand for low-margin products and services
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