Riyadh, Saudi Arabia–Zain KSA has posted a 157 percent jump in profit to $146.7 million in 2022 on the back of higher revenue, according to a filing to the Saudi Exchange.
The operator’s revenue rose from $2.10 billion in 2021 to $2.40 billion in 2022, driven by growth in business-to-business, 5G and other revenue streams.
The revenue increased due to the post-pandemic return of international visitors and the growth in Tamam revenue.
“Zain KSA’s 2022 financial results reflect the qualitative shift in its financial, operational, and developmental performance, as well as the ongoing impact of its strategy,” said Chairman Naif Al Kabeer.
He added that this achievement was led by enhancing customer experience and expanding in future technologies.
It was also backed by investing in parallel markets while continuing to strengthen governance to ensure sustainable growth and earnings, noted the chairman.
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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,” noted the bourse statement.
To develop the quality of services provided to its clients, the company invested a capital expenditure of $244 million in 2022.
Zain KSA’s financing cost increased by SR85 million last year, 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.
For the fiscal year 2022, the company’s board of directors recommended the distribution of a 5 percent cash dividend, or SR0.5 per share.
The Saudi telecom company also suggested SR449.4 million of cash dividends distributed to shareholders, for 898.7 million shares.
Zain KSA succeeded in achieving the targets it set five years ago, making 2022 a year of qualitative transformation in the telco’s operations and profits, noted its CEO Sultan Al-Deghaither.
