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  • 27-03-23

    Zain KSA Reports Record High Profits of USD146.7 Million in 2022

    (MENAFN) Zain KSA, formerly known as Mobile Telecommunication Co. Saudi Arabia, has reported a record high profit of SR550 million (USD146.7 million) in 2022. This represents a 157 percent increase from the same period a year earlier, driven by higher revenue. The telecom operator's revenue rose from SR7.9 billion in 2021 to SR9 billion in 2022, primarily due to growth in business-to-business, 5G, and other revenue streams. Additionally, revenue increased due to the post-pandemic return of international visitors and the growth in Tamam revenue.

    The company's Chairman, Naif Al Kabeer, attributed the achievement to the enhancement of customer experience and expansion in future technologies. He also noted that investing in parallel markets while strengthening governance to ensure sustainable growth and earnings supported this achievement. Despite the cost of revenues increasing by 25 percent, the gross profit rose by SR431 million or 9 percent, according to the filing to the Saudi Exchange.

    Zain KSA invested a capital expenditure of SR915 million in 2022 to develop the quality of services provided to its clients. However, the company's financing cost increased by SR85 million, primarily due to the increase in the reference price of the financing cost in Saudi riyals known as SIBOR and the reference price of the financing cost in US dollars known as LIBOR.

    The filing noted that the company's operating expenses rose by SR404 million, while amortization and depreciation dropped by SR364 million. This was due to the reclassification of the tower's assets to assets held for sale concerning the announced disposal plan of the telecom towers.

    Overall, Zain KSA's 2022 financial results reflect a qualitative shift in its financial, operational, and developmental performance, as well as the ongoing impact of its strategy. The company's success in expanding revenue streams and investing in future technologies positions it for continued growth and success in the Saudi Arabian telecom market.

    MENAFN27032023000045014228ID1105865450

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