Mobile Telecommunication Company Saudi Arabia (Zain KSA) reported a seven-fold increase in net profit at 563 million Saudi riyals ($150.11 million) in Q1 2023, compared to 80.5 million riyals a year earlier. 

The higher earnings were reported due to a year-on-year (YoY) increase of 11% in net revenue to 2.42 billion, driven by growth in B2B, 5G, and Tamam Financing Co, Zain KSA’s fintech subsidiary.  

In addition, the company recognised a net gain on sale and leaseback of 3,600 towers to Public Investment Fund-owned Golden Lattice Investment Company (GLI) in Q1 2023 at 532 million riyals, excluding any related increase in zakat.

The cost of revenue rose 6.9% YoY as operating expenses increased by 195 million riyals.  

The telco’s finance costs increased by 50 million riyals due to the increase in Saudi Arabian Interbank Offered Rate (SAIBOR) and London Interbank Offered Rate (LIBOR) rates.   

The total capital investment for Q1 2023 stood at 37 million riyals to enhance customer service quality.

In March, the company’s board of directors recommended a 5% cash dividend for 2022.

(Editing by Seban Scaria seban.scaria@lseg.com)