Saudi Telecom Company Zain achieved a net profit of about 285 million Saudi riyals during the third quarter of the year 2023, achieving an increase of 235% compared to a net profit of 85 million Saudi riyals for the third quarter of the year 2022. The company also achieved an increase in total profit of 105 million riyals. Compared to the third quarter of 2022.
Quarterly revenues amounted to 2.5 billion Saudi riyals, with an increase in revenues amounting to 239 million Saudi riyals, an increase of 10% over the revenues of the third quarter of the year 2022. This increase is due to the growth in revenues from fifth generation services, digital services, the business sector, and wholesale sales, in addition to the growth. In the revenues of Tamam Finance Company.
Zain Company witnessed an increase in the cost of revenues by 15%, as a result of the increase in revenues, and an increase in operating expenses by 90 million Saudi riyals, resulting mainly from the restructuring of the company’s expenses as a result of the deal to sell and lease back communications towers, while expected credit loss expenses decreased by 82 million. One million Saudi riyals as a result of improved collection capacity.
In addition to the increase in the financing cost by 23 million Saudi riyals, this is due to the increase in the reference rate for the financing cost in Saudi riyals (SIBOR) and the reference price for the financing cost in US dollars (LIBOR).
The net profit resulting from the sale and leaseback of 1,400 towers to (Letis Gold) Company, which were transferred during the third quarter of the year 2023, amounted to 139 million Saudi riyals, excluding any increase related to the impact of Zakat.
