Mobile Telecommunication Company Saudi Arabia (Zain KSA) announces its Interim Financial Results for the Period Ending on 2020-09-30 ( Nine Months )

Tuesday 3 November 2020
ELEMENT LIST CURRENT QUARTER SIMILAR QUARTER FOR PREVIOUS YEAR %CHANGE PREVIOUS QUARTER % CHANGE
Sales/Revenue 1,928 2,008 -3.984 1,889 2.064
Gross Profit (Loss) 1,266 1,495 -15.317 1,355 -6.568
Operational Profit (Loss) 138 376 -63.297 297 -53.535
Net Profit (Loss) after Zakat and Tax 60 121 -50.413 59 1.694
Total Comprehensive Income 54 102 -47.058 48 12.5
All figures are in (Millions) Saudi Arabia, Riyals  

 

ELEMENT LIST CURRENT PERIOD SIMILAR PERIOD FOR PREVIOUS YEAR %CHANGE
Sales/Revenue 5,856 6,158 -4.904
Gross Profit (Loss) 4,094 4,499 -9.002
Operational Profit (Loss) 792 1,132 -30.035
Net Profit (Loss) after Zakat and Tax 224 380 -41.052
Total Comprehensive Income 140 250 -44
Total Share Holders Equity (after Deducting Minority Equity) 4,243 3,969 6.903
Profit (Loss) per Share 0.384 0.65  
All figures are in (Millions) Saudi Arabia, Riyals

 

ACCUMULATED LOSSES CAPITAL PERCENTAGE %
1,384 5,837 23.7
All figures are in (Millions) Saudi Arabia, Riyals

 

ELEMENT LIST EXPLANATION
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 nine quarters in a row despite the outbreak of Covid-19.
The company reported net profit of SAR 60 million in Q3 2020 compared to a net profit of SAR 121 million in Q3 2019 due to the decrease in revenue by 4 % amounting SAR 80 million due to the cumulative impact of the pandemic which led to a minimal numbers of visitors for business and Umrah, limiting Hajj to local pilgrims in addition to the reduction of mobile termination rate.
Cost of revenue has increased by SAR 149 million in this quarter compared to Q3 2019. This has been partial absorbed by a decrease in Opex by SAR 41 million as a result of better cost management to limit the impact of the pandemic.
Depreciation and amortization increased by SAR 55 million as a result of the capex investment.
Finance cost decreased by SAR 45 million due to the decrease in Sibor and Libor. The refinancing of the Murabaha agreement has led to a gain on modification under IFRS9 accounting treatment for the amount of SAR 136 million
The company released certain provision in this quarter with a net impact of SAR 39 million vs SAR 129 million in Q3 2019.
Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to The net profit increased slightly in this quarter compared to last quarter to reach SAR 60 million vs SAR 59 million due to the increase of revenue by 2% amounting SAR 38 million; decrease of finance cost by SAR 26 million and to the gain of MFA modification by SAR 136 million due to the refinancing of the Murabaha agreement; despite the increase of cost of revenue by SAR 127 million, Opex by SAR 48 million and depreciation and amortization by SAR 24 million.
Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to

The revenue decreased by 5% amounting SAR 303 million in this period compared to the same period of last year and cost of revenue increased by 102 million.
This decrease in revenue was partially compensated by a decrease in Opex by SAR 161 million, financial cost by SR 64 million and gain from modification by SR 136 million
Depreciation and amortization increased by SAR 99 million
All the above have led to a net profit of SAR 224 million in the 9 months of 2020 compared to a net profit of SAR 380 million in the 9 months of 2019

 
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 1,384 million as at 30-09-2020, representing 23.7 % of the company’s share capital of SAR 5,837 million. This is an improvement when compared to the accumulated deficit of SAR 1,444 million as at 30-06-2020, which represented 24.7 % of the company’s share capital. This decrease is due to the net profit recorded in this quarter.
Total capex investment for the first nine-month of 2020 is SAR 2,187 million

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