Sales/Revenue

2,039

2,093

-2.58

2,228

-8.482

Gross Profit (Loss)

1,473

1,480

-0.472

1,469

0.272

Operational Profit (Loss)

357

382

-6.544

379

-5.804

Net Profit (Loss) after Zakat and Tax

105

129

-18.604

105

-

Total Comprehensive Income

38

62

-38.709

134

-71.641

All figures are in (Millions) Saudi Arabia, Riyals

Total Share Holders Equity (after Deducting Minority Equity)

4,141

3,781

9.521

Profit (Loss) per Share

0.18

0.222

All figures are in (Millions) Saudi Arabia, Riyals

1,503

5,837

25.7

All figures are in (Millions) Saudi Arabia, Riyals

Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to

Zain KSA continues to record net profit for seventh quarters in a row.

The company reported net profit of SAR 105 million in Q1 2020 compared to a net profit of SAR 129 million in Q1 2019 due to the decrease in revenue by 2.6% amounting SAR 55 million due to the decrease demand for low margin company’s products and services such as devices and visitor packages.

Add to that, Opex increased by SAR 5 million, expected credit loss increased by SAR 4 million, deprecation and amortization increased as well by SAR 9.5 million as a result of the capex investment. Finally, zakat increased by SAR 5 million.

EBITDA reached SAR 939 million; representing 46% of revenue; compared to SAR 955 million; representing 46% of revenue; for the same quarter of the previous year.

The company released certain provision in this quarter with a net impact of SAR 133 million vs SAR 107 million in Q1 2019.

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to

The net profit was stable and stood at SAR 105 million despite the decrease of revenue by 8.5% amounting to SAR 189 million due to the decrease in demand for low margin company’s products and services such as devices and visitor packages. This decrease in revenue has been compensated by a decrease in cost of revenue by SAR 193 million; therefore, the gross profit increased by SAR 4 million and presented 72% of revenue in this quarter vs 66% in Q4 2019. Moreover, Opex increased by 8.5% amounting SAR 38 million; however, depreciation and amortization decreased by SAR 14 million, other income increased by SAR 10 million and Zakat decreased by SAR 14 million.

Basis of the External Auditor's Opinion

Unmodified opinion

Reclassification of Comparison Items

Certain comparatives figures have been reclassified to conform with the presentation in the current period.

Additional Information

The accumulated deficit decreased to reach SAR 1,503 million as at 31 March 2020, representing 25.7% of the company’s share capital of SAR 5,837 million. This is an improvement when compared to the accumulated deficit of SAR 1,608 million as at 31 December 2019, which represented 27.5% of the company’s share capital. This decrease is due to the net profit recorded in this quarter.

Total capex investment for the first three-month of 2020 is SAR 1,096 million.