The preliminary financial results of the Saudi Mobile Telecommunications Company, Zain Saudi Arabia, revealed that it recorded a jump in its net profits during the year 2023 by about 130.36% compared to the year 2022.
The company explained, according to a statement issued today, Sunday, on the Saudi Stock Exchange, that the net profit after zakat and tax amounted to about 1.27 billion riyals, compared to 550 million riyals in the previous year.
The reason for the increase in profits was attributed to achieving the highest revenues in the company's history, amounting to 9.9 billion Saudi riyals, an increase of 8.9% over the 2022 revenues of 9.1 billion Saudi riyals.
This increase in revenues is due to the growth in revenues from the business sector, 5G services, digital services, Tamam Finance Company revenues, and wholesale sales.
The company noted that the 2023 results witnessed the recording of gains from the tower sale and leaseback deal worth 1.21 billion riyals (including 121 million riyals net profit from the sale of Zain Saudi Arabia’s stake in GLIC).
It also pointed out that, in contrast, operating expenses increased by 708 million Saudi riyals, due to costs related to re-leasing towers, and expected credit loss expenses increased by 11 million Saudi riyals.
The cost of financing increased by SAR 153 million due to the increase in the reference rate for the cost of financing in Saudi riyals (SIBOR) and the reference rate for the cost of financing in US dollars (LIBOR).
Regarding the results of the fourth quarter of 2023, Zain Saudi Arabia recorded an increase in its net profits by about 18%, with a net profit of 296 million riyals, compared to 251 million riyals in the comparative period of last year.
