Zain KSA posts 46% growth in annual profit for 2019

This increase in net profits is due to an increase in revenue by 11%

  
A trader monitors stocks at a Saudi Bank in Dammam October 26, 2008.

A trader monitors stocks at a Saudi Bank in Dammam October 26, 2008.

REUTERS/Stringer

Riyadh – Mubasher: Mobile Telecommunication Company Saudi Arabia (Zain KSA) reported a 46% increase in net profit for 2019, as shown by its consolidated annual financial results released on Wednesday.

The net profit after Zakat and tax amounted to SAR 485 million last year, up from SAR 332 million a year earlier, according to the company’s statement to the Saudi Stock Exchange (Tadawul).

Zain KSA noted that the growth in net profit is considered the best result for the company since its inception.

This increase in net profits is due to an increase in revenue by 11% to SAR 855 million, as a result of increased demand. Higher revenues led to an increase in gross profit by SAR 544 million.

Meanwhile, a decrease in operating expenses by SAR 269 million, came as a result of the adoption of IFRS 16, to SAR 491 million.

Nonetheless, an increase in operational profit by SAR 292 million, was offset by an increase in depreciation and amortization and finance cost by SAR 636 million, due to the adoption of IFRS16 and the acquisition of new spectrum and equipment.

Zain KSA further disclosed that thanks to the recorded net profit, it was able to reduce its accumulated deficit to SAR 1.608 billion for 2019 representing 27.5% of its share capital of SAR 5.837 billion compared to SAR 1.8 billion for 2018 representing 30.8% of its share capital.

Source: Mubasher

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