Arab News, Monday, Mar 27, 2023 | Ramadan 5, 1444
Telecom operator Zain KSA posts record profit of $147m in 2022
Saudi Arabia: Profits of Zain KSA,
formally known as Mobile Telecommunication Co. Saudi Arabia, reached a record
high of SR550 million ($146.7 million) in 2022.
The telecom operator’s profit surged 157 percent
from SR214 million in the same period a year earlier on the back of higher
revenue, according to a filing to the Saudi Exchange.
Its revenue rose from SR7.9 billion in 2021 to SR9
billion in 2022, driven by growth in business-to-business, 5G and other revenue
streams.
In addition, 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.
The filing added that despite a 25 percent
increase in the cost of revenues during that year, the gross profit rose by
SR431 million or 9 percent.
Furthermore, the company’s operating expenses rose
by SR404 million, while amortization and depreciation dropped by SR364
million.
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 SR915 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.