RIYADH: 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.