Mobile Telecommunication Company Saudi Arabia (Zain KSA) reported a net profit after Zakat and tax of SAR 214 million for 2021, down 18% from SAR 260 million a year earlier.
| Item | 2020 | 2021 | Change |
|---|---|---|---|
| Revenues | 7,916.55 | 7,900.65 | (0.2 %) |
| Gross Income | 5,444.64 | 4,884.60 | (10.3 %) |
| Operating Income | 1,001.96 | 698.74 | (30.3 %) |
| Net Income | 259.95 | 214.30 | (17.6 %) |
| Average Shares | 898.73 | 898.73 | - |
| EPS (Riyals) | 0.29 | 0.24 | (17.6 %) |
The company attributed the profit decline to revenue that was almost stable despite the cumulative impact of the pandemic, which led to a minimal number of visitors for Umrah, whereby it was compensated by the growth in B2B and 5G revenues.
The cost of revenue increased by 22%, which resulted in a decrease in gross profit by a cumulative impact of 10.28%. The increase in cost is the result of the release of certain provisions in 2020 amounting SAR 484 million, the telco said.
| Item | Q4 2020 | Q4 2021 | Change |
|---|---|---|---|
| Revenues | 2,060.88 | 2,083.10 | 1.1 % |
| Gross Income | 1,350.59 | 1,166.17 | (13.7 %) |
| Operating Income | 210.32 | 192.98 | (8.2 %) |
| Net Income | 35.95 | 71.40 | 98.6 % |
| Average Shares | 898.73 | 898.73 | - |
| EPS (Riyals) | 0.04 | 0.08 | 98.6 % |
| Item | Q3 2021 | Q4 2021 | Change |
|---|---|---|---|
| Revenues | 1,984.17 | 2,083.10 | 5.0 % |
| Gross Income | 1,244.06 | 1,166.17 | (6.3 %) |
| Operating Income | 188.33 | 192.98 | 2.5 % |
| Net Income | 60.39 | 71.40 | 18.2 % |
| Average Shares | 898.73 | 898.73 | - |
| EPS (Riyals) | 0.07 | 0.08 | 18.2 % |
In Q4 2021, the company reported a net profit of SAR 71.1 million, a rise of 98% year-on-year (YoY), due to higher B2B and 5G revenues, despite the increase in cost of revenue by 12% to SAR 78 million.
Compared with the previous quarter, net profit rose 17.7% from SAR 60.39 million.
Shareholders' equity, excluding minority interest, amounted to SAR 9.04 billion in 2021, up 3.56% compared to SAR 8.72 billion a year earlier.
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