Zain Saudi swings to SAR 67 mln loss in 9M on lower revenue

29/10/2018 Argaam Exclusive

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Mobile Telecommunication Company Saudi Arabia (ZAIN KSA)

Mobile Telecommunications Company Saudi Arabia (Zain Saudi) reported a net loss after zakat and tax of SAR 67 million in the first nine months of 2018, compared to a net profit of SAR 57 million a year earlier, on lower revenue and an increase in depreciation and amortization costs. 



Financials (M)

Item 9m 2017 9m 2018 Change‬
Revenues 5,590.17 5,484.28 (1.9 %)
Gross Income 3,780.41 3,599.90 (4.8 %)
Operating Income 736.66 698.82 (5.1 %)
Net Income 56.56 (66.90) (218.3 %)
Average Shares 573.22 573.22 -
EPS (Riyals) 0.10 (0.12) (218.3 %)

Zain Saudi’s third-quarter net profit soared to SAR 48 million, from SAR 3 million in Q3 2017, thanks to a rise in revenue amid growing demand for the company’s products, and a rise in other income.

 

The telecom operator turned profitable, compared to a net loss of SAR 38 million in Q2 2018, backed by high revenue and other income.



Current Quarter Comparison (M)

Compared With The
Item Q3 2017 Q3 2018 Change‬
Revenues 1,806.56 1,951.88 8.0 %
Gross Income 1,230.87 1,320.57 7.3 %
Operating Income 228.95 307.34 34.2 %
Net Income 3.41 48.01 1309.8 %
Average Shares 573.22 573.22 -
EPS (Riyals) 0.01 0.08 1309.8 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2009 581.67 - 145.98 - (765.37) (40.8 %) (3.47)
Q2 2009 701.52 - 132.59 - (856.66) (457.5 %) (3.89)
Q3 2009 825.49 921.7 % 242.93 1750.0 % (819.73) (26.3 %) (3.72)
Q4 2009 895.38 111.0 % 355.53 1040.2 % (657.59) 29.4 % (2.99)
Q1 2010 1,094.23 88.1 % 384.34 163.3 % (662.45) 13.4 % (3.01)
Q2 2010 1,450.41 106.8 % 608.03 358.6 % (631.59) 26.3 % (2.87)
Q3 2010 1,661.95 101.3 % 712.13 193.1 % (543.79) 33.7 % (2.47)
Q4 2010 1,727.78 93.0 % 825.94 132.3 % (520.61) 20.8 % (2.36)
Q1 2011 1,484.22 35.6 % 716.02 86.3 % (531.75) 19.7 % (2.41)
Q2 2011 1,704.65 17.5 % 923.22 51.8 % (448.18) 29.0 % (2.03)
Q3 2011 1,794.81 8.0 % 870.12 22.2 % (483.81) 11.0 % (2.20)
Q4 2011 1,715.39 (0.7 %) 690.82 (16.4 %) (461.46) 11.4 % (2.09)
Q1 2012 1,521.59 2.5 % 702.20 (1.9 %) (419.99) 21.0 % (1.91)
Q2 2012 1,629.02 (4.4 %) 707.12 (23.4 %) (393.64) 12.2 % (1.79)
Q3 2012 1,529.90 (14.8 %) 711.62 (18.2 %) (493.00) (1.9 %) (0.86)
Q4 2012 1,490.16 (13.1 %) 738.98 7.0 % (442.78) 4.0 % (0.77)
Q1 2013 1,719.40 13.0 % 776.23 10.5 % (397.95) 5.2 % (0.69)
Q2 2013 1,706.35 4.7 % 830.76 17.5 % (370.41) 5.9 % (0.65)
Q3 2013 1,573.32 2.8 % 760.98 6.9 % (420.81) 14.6 % (0.73)
Q4 2013 1,523.52 2.2 % 766.88 3.8 % (462.30) (4.4 %) (0.81)
Q1 2014 1,545.77 (10.1 %) 798.66 2.9 % (318.36) 20.0 % (0.56)
Q2 2014 1,567.13 (8.2 %) 797.05 (4.1 %) (328.94) 11.2 % (0.57)
Q3 2014 1,553.00 (1.3 %) 810.67 6.5 % (315.81) 25.0 % (0.55)
Q4 2014 1,556.46 2.2 % 816.27 6.4 % (306.46) 33.7 % (0.53)
Q1 2015 1,656.79 7.2 % 874.43 9.5 % (256.72) 19.4 % (0.45)
Q2 2015 1,648.83 5.2 % 949.40 19.1 % (201.16) 38.8 % (0.35)
Q3 2015 1,763.73 13.6 % 1,062.18 31.0 % (222.95) 29.4 % (0.39)
Q4 2015 1,672.03 7.4 % 1,065.09 30.5 % (291.11) 5.0 % (0.51)
Q1 2016 1,764.88 6.5 % 1,085.55 24.1 % (250.00) 2.6 % (0.44)
Q2 2016 1,727.40 4.8 % 1,112.80 17.2 % (328.30) (63.2 %) (0.57)
Q3 2016 1,633.76 (7.4 %) 1,060.63 (0.1 %) (266.11) (19.4 %) (0.46)
Q4 2016 1,800.61 7.7 % 1,141.69 7.2 % (134.13) 53.9 % (0.23)
Q1 2017 1,919.05 8.7 % 1,290.99 18.9 % 45.47 118.2 % 0.08
Q2 2017 1,864.57 7.9 % 1,258.55 13.1 % 7.69 102.3 % 0.01
Q3 2017 1,806.56 10.6 % 1,230.87 16.1 % 3.41 101.3 % 0.01
Q4 2017 1,715.65 (4.7 %) 1,132.61 (0.8 %) (45.02) 66.4 % (0.08)
Q1 2018 1,685.97 (12.1 %) 1,117.37 (13.4 %) (77.33) (270.1 %) (0.13)
Q2 2018 1,846.43 (1.0 %) 1,161.96 (7.7 %) (37.57) (588.4 %) (0.07)
Q3 2018 1,951.88 8.0 % 1,320.57 7.3 % 48.01 1309.8 % 0.08

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2009 - - -
Q2 2009 16.50 % (92.47 %) (179.10 %)
Q3 2009 21.82 % (58.30 %) (133.18 %)
Q4 2009 29.19 % (35.71 %) (103.17 %)
Q1 2010 31.72 % (23.12 %) (85.21 %)
Q2 2010 37.30 % (8.97 %) (64.97 %)
Q3 2010 40.38 % 1.01 % (48.91 %)
Q4 2010 42.64 % 5.57 % (39.74 %)
Q1 2011 45.26 % 8.77 % (35.22 %)
Q2 2011 48.30 % 11.75 % (31.08 %)
Q3 2011 49.70 % 12.64 % (29.57 %)
Q4 2011 47.77 % 13.42 % (28.74 %)
Q1 2012 47.30 % 14.66 % (26.92 %)
Q2 2012 44.59 % 14.89 % (26.41 %)
Q3 2012 43.96 % 14.62 % (27.64 %)
Q4 2012 46.35 % 14.24 % (28.35 %)
Q1 2013 46.07 % 13.24 % (27.12 %)
Q2 2013 47.44 % 12.73 % (26.44 %)
Q3 2013 47.88 % 13.68 % (25.15 %)
Q4 2013 48.06 % 13.65 % (25.32 %)
Q1 2014 49.73 % 15.48 % (24.76 %)
Q2 2014 50.30 % 15.95 % (24.65 %)
Q3 2014 51.27 % 15.29 % (24.40 %)
Q4 2014 51.79 % 15.50 % (22.58 %)
Q1 2015 52.08 % 15.99 % (21.21 %)
Q2 2015 53.79 % 18.43 % (18.95 %)
Q3 2015 55.88 % 21.85 % (15.66 %)
Q4 2015 58.61 % 24.16 % (14.42 %)
Q1 2016 60.77 % 25.19 % (14.09 %)
Q2 2016 62.44 % 24.01 % (15.77 %)
Q3 2016 63.61 % 25.15 % (16.70 %)
Q4 2016 63.53 % 25.92 % (14.13 %)
Q1 2017 65.05 % 28.46 % (9.65 %)
Q2 2017 65.83 % 31.52 % (4.81 %)
Q3 2017 66.60 % 32.71 % (1.05 %)
Q4 2017 67.25 % 34.45 % 0.16 %
Q1 2018 67.01 % 34.79 % (1.57 %)
Q2 2018 65.81 % 35.09 % (2.22 %)
Q3 2018 65.73 % 36.27 % (1.55 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2009 220.28 (11.35) (11.35) 49.74
Q2 2009 220.28 (14.54) (14.54) 45.85
Q3 2009 220.28 (15.32) (15.32) 42.13
Q4 2009 220.28 (14.07) (14.07) 39.14
Q1 2010 220.28 (13.60) (13.60) 36.14
Q2 2010 220.28 (12.58) (12.58) 33.27
Q3 2010 220.28 (11.33) (11.33) 29.90
Q4 2010 220.28 (10.71) (10.71) 27.83
Q1 2011 220.28 (10.11) (10.11) 25.58
Q2 2011 220.28 (9.28) (9.28) 23.62
Q3 2011 220.28 (9.01) (9.01) 21.58
Q4 2011 220.28 (8.74) (8.74) 19.49
Q1 2012 220.28 (8.23) (8.23) 17.79
Q2 2012 220.28 (7.98) (7.98) 16.00
Q3 2012 573.22 (3.08) (3.08) 15.53
Q4 2012 573.22 (3.05) (3.05) 14.74
Q1 2013 573.22 (3.01) (3.01) 14.05
Q2 2013 573.22 (2.97) (2.97) 13.40
Q3 2013 573.22 (2.85) (2.85) 12.67
Q4 2013 573.22 (2.88) (2.88) 11.79
Q1 2014 573.22 (2.74) (2.74) 11.22
Q2 2014 573.22 (2.67) (2.67) 10.60
Q3 2014 573.22 (2.49) (2.63) 10.10
Q4 2014 573.22 (2.21) (2.45) 9.53
Q1 2015 573.22 (2.11) (2.34) 9.04
Q2 2015 573.22 (1.88) (2.12) 8.71
Q3 2015 573.22 (1.72) (1.81) 8.31
Q4 2015 573.22 (1.70) (1.70) 7.94
Q1 2016 573.22 (1.68) (1.68) 7.45
Q2 2016 573.22 (1.91) (1.91) 6.88
Q3 2016 573.22 (1.98) (1.98) 6.42
Q4 2016 573.22 (1.71) (1.71) 6.21
Q1 2017 573.22 (1.19) (1.19) 6.28
Q2 2017 573.22 (0.61) (0.61) 6.29
Q3 2017 573.22 (0.14) (0.14) 6.30
Q4 2017 573.22 0.02 0.02 6.22
Q1 2018 573.22 (0.19) (0.19) 6.31
Q2 2018 573.22 (0.27) (0.27) 6.22
Q3 2018 573.22 (0.20) (0.20) 6.33

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2009 NEG NEG 3.20
Q2 2009 NEG NEG 3.95
Q3 2009 NEG NEG 3.99
Q4 2009 NEG NEG 4.00
Q1 2010 NEG NEG 4.16
Q2 2010 NEG NEG 3.92
Q3 2010 NEG NEG 4.08
Q4 2010 NEG NEG 4.30
Q1 2011 NEG NEG 4.16
Q2 2011 NEG NEG 4.51
Q3 2011 NEG NEG 4.47
Q4 2011 NEG NEG 4.39
Q1 2012 NEG NEG 9.41
Q2 2012 NEG NEG 7.52
Q3 2012 NEG NEG 1.95
Q4 2012 NEG NEG 1.58
Q1 2013 NEG NEG 1.71
Q2 2013 NEG NEG 2.18
Q3 2013 NEG NEG 2.22
Q4 2013 NEG NEG 2.33
Q1 2014 NEG NEG 2.73
Q2 2014 NEG NEG 2.76
Q3 2014 NEG NEG 3.12
Q4 2014 NEG NEG 2.00
Q1 2015 NEG NEG 1.90
Q2 2015 NEG NEG 2.09
Q3 2015 NEG NEG 1.75
Q4 2015 NEG NEG 1.68
Q1 2016 NEG NEG 1.87
Q2 2016 NEG NEG 1.82
Q3 2016 NEG NEG 1.67
Q4 2016 NEG NEG 2.13
Q1 2017 NEG NEG 2.25
Q2 2017 NEG NEG 2.34
Q3 2017 NEG NEG 2.22
Q4 2017 More than 50 More than 50 1.88
Q1 2018 NEG NEG 1.81
Q2 2018 NEG NEG 1.71
Q3 2018 NEG NEG 1.57

Business Segments (Million)

Compared With The
Period Mobile Telecommunications Company
Q1 2018 1,685.97
Q2 2018 1,846.43
Q3 2018 1,951.89

Analysts Estimates (Million)

Item Q3 2018 (e) Q3 2018 (a) Change‬
Average (47.33) 48.01 201.44 %

Estimates vs Actual (Million)

Item Q3 2018 (e) Q3 2018 (a) Change
Al Rajhi Capital (57.00) 48.01 184.2 %
Riyad Capital (52.00) 48.01 192.3 %
AlJazira Capital (45.30) 48.01 206.0 %
SNB Capital (35.00) 48.01 237.2 %

Current
Market Cap (M Riyal) 10,874.63
Enterprise Value (EV) (M) 17,648.26
Shares Outstanding ((M)) 898.73
EPS ( Riyal) (TTM) 1.41
Book Value (BV) ( Riyal) 11.78
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) More than 50
P/E (TTM) 8.58
Price/book 1.03
Return on Average Assets (%) (TTM) 4.5
Return on Average Equity (%) (TTM) 12.4

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