Mobile Telecommunication Company Saudi Arabia (Zain KSA) announces its Interim Financial results for the Period Ending on 2024-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 2,583 | 2,525 | 2.297 | 2,552 | 1.214 |
| Gross Profit (Loss) | 1,714 | 1,481 | 15.732 | 1,540 | 11.298 |
| Operational Profit (Loss) | 318 | 319 | -0.313 | 242 | 31.404 |
| Net profit (Loss) | 150 | 70 | 114.285 | 105 | 42.857 |
| Total Comprehensive Income | 133 | 78 | 70.512 | 104 | 27.884 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 7,671 | 7,340 | 4.509 |
| Gross Profit (Loss) | 4,800 | 4,380 | 9.589 |
| Operational Profit (Loss) | 810 | 763 | 6.159 |
| Net profit (Loss) | 322 | 1,321 | -75.624 |
| Total Comprehensive Income | 305 | 1,341 | -77.255 |
| Total Shareholders Equity (after Deducting Minority Equity) | 10,447 | 10,344 | 0.995 |
| Profit (Loss) per Share | 0.17 | 0.08 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | Zain KSA witnessed an increase in revenue by SAR 58 million (2.3%) in Q3 2024 vs Q3 2023. This increase is due to the growth in B2B sales, 5G services, wholesale revenue, in addition to the growth in “Tamam” business. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Net profit for Q3 2024 was higher than the same quarter in 2023 by SAR 81 million.
The company’s gross profit increased by SAR 232 million (15.7%) due to the release of withholding tax on international traffic provision for the amount of SR 157 million while operating expenses increased by SAR 33 million (5%) and ECL expenses increased by SAR 180 million as a result of booking additional bad debt provision mainly to cater for old ageing consumer receivables and B2B.
The company recorded a onetime gain related to the sale and lease back of 199 sites for the amount of SAR 21 million. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | Zain KSA Q3 2024 revenue is higher than Q2 2024 by SAR 31 million mainly due to equipment sales growth and “Tamam” business. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | Net profit of Q3 2024 is SAR 150 million compared to a net profit of SAR 105 million in Q2 2024, reflecting an increase of 43%.
The company’s gross profit increased by SAR 173 million (11.3%) due to the release of withholding tax on international traffic provision for the amount of SR 157 million while operating expenses increased by SAR 29 million only (4%) and ECL provision expenses increased by SAR 68 million. The company recorded a onetime gain related to the sale and lease back of 199 sites for the amount of SAR 21 million. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | Zain KSA revenue for the current period of 2024 is higher than last year period of 2023 by SR 331 million (4.5%). This is due to growth in 5G services, B2B sales, wholesale, and Hajj season, in addition to the growth in “Tamam” business. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | Net profit for the current period is SR 322 million. The net profit, excluding towerco transaction, will result in a gain of SR 300 million in the period of 2024 compared to SR 226 million in the same period of 2023 (33%)
The company’s gross profit increased by SR 420 million, operating expenses increased by SR 123 million and bad debt provision by SR 217 million. Operating profit increased to SR 810 million, compared to SR 763 million in the nine months of 2023. Zakat decrease from SR 65 million in the nine months of 2023 to SR 32 million in the nine months of 2024 |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | N/A |
| Reclassification of Comparison Items | There has been restatement of some components in the profit and loss statement as the accounting of the tower transaction was revisited in Q4 2023 due to the significant judgements and estimations involved in assessing the transfer of control to the tower transaction.
There is no impact of the above-mentioned restatement and reclassifications on the consolidated financial statement reported and issued as of 31 December 2023 as all necessary adjustments required have already been accounted for in consolidated financial statements for the year ended 31 December 2023, during Q4 2023. |
| Additional Information | In Sept 2024, the company paid the MFA installment for the amount of SAR 633 million in addition to its relevant interest charges.
Total CAPEX investment for Q3 2024 amounted to SAR 293 million to further enhance the customer’s experience and the quality of the services. |
Comments