Zain KSA reports 55% plunge in Q2 earnings

Zain KSA recorded net profits for the eighth consecutive quarter

  
A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.

A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.

REUTERS/Faisal Al Nasser

Riyadh - Mubasher: Mobile Telecommunication Company Saudi Arabia (Zain KSA) registered SAR 59 million in net profits after Zakat and tax during the second quarter (Q2) of 2020, down by 54.6% from SAR 130 million in the corresponding period in 2019.

Year-on-year (YoY), the company’s revenues decreased by 8.1% to stand at SAR 1.89 billion by the end of June 2020 from SAR 2.06 billion, according to a bourse filing on Tuesday.

Zain KSA was able to record net profits for the eighth consecutive quarter despite the COVID-19 impact. However, the lower Q2-20 earnings are due to the plunge in revenues by SAR 168 million.

The estimated impact of COVID-19 on Q2 potential revenues is SAR 186 million, resulting primarily from the drop in prepaid, postpaid, devices, and visitor packages and the halt of the umrah season. This drop has been partially absorbed by a SAR 125 million decrease in operating expenses.

Moreover, depreciation and amortisation increased by SAR 34 million, whereas financing cost slipped by SAR 14 million.

Source: Mubasher

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