Riyadh, Saudi Arabia — Mobile Telecommunication Company Saudi Arabia (Zain KSA) reported a net profit of SAR 1.26 billion ($335m) in 2023, marking a sharp rise from a profit of SAR 550 million in the previous year.
The telecom services provider said its revenue rose 8.9 percent year-on-year (YoY) to an all-time high of SAR 9.9 billion in 2023, backed by a growth in B2B, 5G, digital products, wholesale and Tamam services, according to Argaam.
Gross profit increased 10 percent YoY. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached SAR 2.97 billion, down SAR 177 million YoY, due to higher operating expenses (OpEx).
Net gain from the sale and leaseback transaction of all 8,069 towers was fully recognised during 2023 for a total of SAR 1.21 billion (including SAR 121 million in net gain from the sale of Zain KSA equity in GLIC).
Meanwhile, the company saw in increased of SAR 708 million in distribution, marketing, general and administrative expenses, mainly due to the cost related to lease back of Tower Co. Expected credit loss expense increased by SAR 11 million.
Finance costs increased by SAR 153 million due to higher SAIBOR and LIBOR. Cost of revenue rose 7 percent YoY.
The telco posted net earnings of SAR 295.6 million in Q4 2023, up 18.2 percent from SAR 250.17 million in Q4 2022.
Compared with the previous quarter, net profit edged up from SAR 284.57 million.
Shareholders’ equity, no minority interest, amounted to SAR 10.59 billion as of Dec. 31, 2023, compared to SAR 9.8 billion a year earlier.
