Mobile Telecommunication Company Saudi Arabia (Zain KSA) posted a net profit after Zakat and tax of SAR 143 million for the first nine months of 2021, a 36% decline from SAR 224 million in the same period last year.
| Item | 9m 2020 | 9m 2021 | Change |
|---|---|---|---|
| Revenues | 5,855.67 | 5,817.54 | (0.7 %) |
| Gross Income | 4,094.05 | 3,718.43 | (9.2 %) |
| Operating Income | 791.65 | 505.76 | (36.1 %) |
| Net Income | 224.00 | 142.90 | (36.2 %) |
| Average Shares | 573.22 | 898.73 | 56.8 % |
| EPS (Riyals) | 0.39 | 0.16 | (59.3 %) |
The company attributed the profit drop to a 1% year-on-year (YoY) decrease in revenue and a 19% rise YoY in the cost of revenue.
This decline was partially offset by a decrease in operating expenses (OPEX) and financial costs as a result of capital restructuring in Q4 2020.
| Item | Q3 2020 | Q3 2021 | Change |
|---|---|---|---|
| Revenues | 1,927.59 | 1,984.17 | 2.9 % |
| Gross Income | 1,265.93 | 1,244.06 | (1.7 %) |
| Operating Income | 138.27 | 188.33 | 36.2 % |
| Net Income | 60.17 | 60.39 | 0.4 % |
| Average Shares | 573.22 | 898.73 | 56.8 % |
| EPS (Riyals) | 0.10 | 0.07 | (36.0 %) |
| Item | Q2 2021 | Q3 2021 | Change |
|---|---|---|---|
| Revenues | 1,895.86 | 1,984.17 | 4.7 % |
| Gross Income | 1,258.86 | 1,244.06 | (1.2 %) |
| Operating Income | 159.35 | 188.33 | 18.2 % |
| Net Income | 41.65 | 60.39 | 45.0 % |
| Average Shares | 898.73 | 898.73 | - |
| EPS (Riyals) | 0.05 | 0.07 | 45.0 % |
The Q3 2021 net profit after Zakat and tax stood at SAR 60.4 million, rising marginally from SAR 60.2 million in the same period last year, as revenue rose by 3% YoY, driven by the B2B and 5G services.
The telco also noted lower OPEX and finance costs due to the reduction of the total debt as a result of capital restructuring in Q4 2020.
On a sequential basis, Zain KSA’s net profit grew 45% in Q3 2021.
Shareholders' equity, excluding minority rights, at the end of 9M 2021 amounted to SAR 8.92 billion, compared to SAR 4.243 billion at the end of the same period last year.
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