Zain KSA 9M 2023 net profit surges to SAR 971 mln, Q3 up at SAR 285 mln

Zain KSA 9M 2023 net profit surges to SAR 971 mln, Q3 up at SAR 285 mln

08/11/2023 Argaam Exclusive

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Mobile Telecommunication Company Saudi Arabia (Zain KSA) reported a net profit of SAR 971 million for the first nine months of 2023, compared to SAR 299 million a year earlier.



Financials (M)

Item 9m 2022 9m 2023 Change‬
Revenues 6,671.31 7,339.88 10.0 %
Gross Income 3,863.06 4,379.96 13.4 %
Operating Income 686.26 762.94 11.2 %
Net Income 299.49 1,321.07 341.1 %
Average Shares 898.73 898.73 -
EPS (Riyals) 0.33 1.47 341.1 %

Gross profit increased by SAR 517 million compared to the same period in 2022, mainly due to a 10% (SAR 669 million) rise year-on-year (YoY) in revenues, driven by the growth in revenues from B2B, 5G services, digital packages, wholesale in addition to the growth on Tamam.  

 

On the other hand, cost of revenue increased by SAR 152 million while operating expenses (OpEx) rose by SAR 470 million. Finance costs increased by SAR 114 million due to the SAIBOR and LIBOR hikes. 

 

Q3 2023 net earnings more than tripled YoY to SAR 285 million compared to SAR 85 million. 



Current Quarter Comparison (M)

Compared With The
Item Q3 2022 Q3 2023 Change‬
Revenues 2,286.62 2,525.34 10.4 %
Gross Income 1,376.35 1,481.49 7.6 %
Operating Income 246.48 319.20 29.5 %
Net Income 85.15 69.66 (18.2 %)
Average Shares 898.73 898.73 -
EPS (Riyals) 0.09 0.08 (18.2 %)

The telecom operator reported record quarterly revenues of SAR 2.5 billion, up by SAR 239 million, or 10% YoY. This increase was driven by the growth in revenues from B2B, 5G services, digital packages, wholesale in addition to the growth of Tamam. 

 

Sequentially, Q3 net profit surged by more than two-fold from SAR 124.18 million.  

Total shareholders’ equity, no minority interest, stood at SAR 10.34 billion by Sept. 30, 2023, compared to SAR 9.55 billion in a prior-year period.

 



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2014 1,545.77 (10.1 %) 798.66 2.9 % (127.18) 45.4 %
Q2 2014 1,567.13 (8.2 %) 797.05 (4.1 %) (135.83) 34.1 %
Q3 2014 1,553.00 (1.3 %) 810.67 6.5 % (218.60) 8.5 %
Q4 2014 1,556.46 2.2 % 816.27 6.4 % (187.47) 30.9 %
Q1 2015 1,656.79 7.2 % 874.43 9.5 % (59.05) 53.6 %
Q2 2015 1,648.83 5.2 % 949.40 19.1 % 0.94 100.7 %
Q3 2015 1,763.73 13.6 % 1,062.18 31.0 % (0.89) 99.6 %
Q4 2015 1,672.03 7.4 % 1,065.09 30.5 % (82.42) 56.0 %
Q1 2016 1,764.88 6.5 % 1,085.55 24.1 % (32.03) 45.8 %
Q2 2016 1,727.40 4.8 % 1,112.80 17.2 % (108.29) (11620.3 %)
Q3 2016 1,633.76 (7.4 %) 1,060.63 (0.1 %) (1.97) (120.0 %)
Q4 2016 1,800.61 7.7 % 1,141.69 7.2 % 87.85 206.6 %
Q1 2017 1,919.05 8.7 % 1,290.99 18.9 % 272.70 951.5 %
Q2 2017 1,864.57 7.9 % 1,258.55 13.1 % 235.01 317.0 %
Q3 2017 1,806.56 10.6 % 1,230.87 16.1 % 228.95 11739.3 %
Q4 2017 1,715.65 (4.7 %) 1,132.61 (0.8 %) 166.58 89.6 %
Q1 2018 1,685.97 (12.1 %) 1,117.37 (13.4 %) 180.33 (33.9 %)
Q2 2018 1,846.43 (1.0 %) 1,161.96 (7.7 %) 211.14 (10.2 %)
Q3 2018 1,951.88 8.0 % 1,320.57 7.3 % 307.34 34.2 %
Q4 2018 2,046.24 19.3 % 1,824.66 61.1 % 674.60 305.0 %
Q1 2019 2,093.49 24.2 % 1,480.38 32.5 % 431.78 139.4 %
Q2 2019 2,056.76 11.4 % 1,523.73 31.1 % 446.05 111.3 %
Q3 2019 2,008.08 2.9 % 1,495.03 13.2 % 450.21 46.5 %
Q4 2019 2,227.90 8.9 % 1,469.37 (19.5 %) 430.27 (36.2 %)
Q1 2020 2,038.87 (2.6 %) 1,473.43 (0.5 %) 356.71 (17.4 %)
Q2 2020 1,889.22 (8.1 %) 1,354.69 (11.1 %) 296.67 (33.5 %)
Q3 2020 1,927.59 (4.0 %) 1,265.93 (15.3 %) 138.27 (69.3 %)
Q4 2020 2,060.88 (7.5 %) 1,350.59 (8.1 %) 210.32 (51.1 %)
Q1 2021 1,937.51 (5.0 %) 1,215.51 (17.5 %) 158.08 (55.7 %)
Q2 2021 1,895.86 0.4 % 1,258.86 (7.1 %) 159.35 (46.3 %)
Q3 2021 1,984.17 2.9 % 1,244.06 (1.7 %) 188.33 36.2 %
Q4 2021 2,083.10 1.1 % 1,166.17 (13.7 %) 192.98 (8.2 %)
Q1 2022 2,178.58 12.4 % 1,235.91 1.7 % 201.13 27.2 %
Q2 2022 2,206.10 16.4 % 1,250.81 (0.6 %) 238.65 49.8 %
Q3 2022 2,286.62 15.2 % 1,376.35 10.6 % 246.48 30.9 %
Q4 2022 2,403.87 15.4 % 1,452.31 24.5 % 379.43 96.6 %
Q1 2023 2,422.16 11.2 % 1,414.84 14.5 % 191.17 (5.0 %)
Q2 2023 2,392.38 8.4 % 1,483.64 18.6 % 252.58 5.8 %
Q3 2023 2,525.34 10.4 % 1,481.49 7.6 % 319.20 29.5 %


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2014 (318.36) 20.0 % (0.56) - (318.36) (0.56)
Q2 2014 (328.94) 11.2 % (0.57) - (328.94) (0.57)
Q3 2014 (315.81) 25.0 % (0.55) 85.00 (400.81) (0.70)
Q4 2014 (306.46) 33.7 % (0.53) 50.47 (356.92) (0.62)
Q1 2015 (256.72) 19.4 % (0.45) - (256.72) (0.45)
Q2 2015 (201.16) 38.8 % (0.35) - (201.16) (0.35)
Q3 2015 (222.95) 29.4 % (0.39) - (222.95) (0.39)
Q4 2015 (291.11) 5.0 % (0.51) - (291.11) (0.51)
Q1 2016 (250.00) 2.6 % (0.44) - (250.00) (0.44)
Q2 2016 (328.30) (63.2 %) (0.57) - (328.30) (0.57)
Q3 2016 (266.11) (19.4 %) (0.46) - (266.11) (0.46)
Q4 2016 (134.13) 53.9 % (0.23) - (134.13) (0.23)
Q1 2017 45.47 118.2 % 0.08 - 45.47 0.08
Q2 2017 7.69 102.3 % 0.01 - 7.69 0.01
Q3 2017 3.41 101.3 % 0.01 - 3.41 0.01
Q4 2017 (45.02) 66.4 % (0.08) - (45.02) (0.08)
Q1 2018 (77.33) (270.1 %) (0.13) - (77.33) (0.13)
Q2 2018 (37.57) (588.4 %) (0.07) - (37.57) (0.07)
Q3 2018 48.01 1309.8 % 0.08 - 48.01 0.08
Q4 2018 399.26 986.8 % 0.70 - 399.26 0.70
Q1 2019 129.31 267.2 % 0.23 - 129.31 0.23
Q2 2019 130.20 446.5 % 0.23 - 130.20 0.23
Q3 2019 120.71 151.5 % 0.21 - 120.71 0.21
Q4 2019 104.96 (73.7 %) 0.18 - 104.96 0.18
Q1 2020 105.22 (18.6 %) 0.18 - 105.22 0.18
Q2 2020 58.61 (55.0 %) 0.10 - 58.61 0.10
Q3 2020 60.17 (50.2 %) 0.10 136.26 (76.09) (0.13)
Q4 2020 35.95 (65.8 %) 0.04 - 35.95 0.04
Q1 2021 40.87 (61.2 %) 0.05 - 40.87 0.05
Q2 2021 41.65 (28.9 %) 0.05 - 41.65 0.05
Q3 2021 60.39 0.4 % 0.07 - 60.39 0.07
Q4 2021 71.40 98.6 % 0.08 - 71.40 0.08
Q1 2022 80.52 97.0 % 0.09 - 80.52 0.09
Q2 2022 133.83 221.3 % 0.15 - 133.83 0.15
Q3 2022 85.15 41.0 % 0.09 - 85.15 0.09
Q4 2022 250.18 250.4 % 0.28 41.89 208.28 0.23
Q1 2023 1,137.22 1312.4 % 1.27 1,143.75 (6.53) (0.01)
Q2 2023 114.19 (14.7 %) 0.13 (0.62) 114.81 0.13
Q3 2023 69.66 (18.2 %) 0.08 (47.82) 117.48 0.13

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 49.73 % 15.48 % (24.76 %)
Q2 2014 50.30 % 15.95 % (24.65 %)
Q3 2014 51.27 % 15.29 % (24.40 %)
Q4 2014 51.79 % 15.50 % (22.58 %)
Q1 2015 52.08 % 15.99 % (21.21 %)
Q2 2015 53.79 % 18.43 % (18.95 %)
Q3 2015 55.88 % 21.85 % (15.66 %)
Q4 2015 58.61 % 24.16 % (14.42 %)
Q1 2016 60.77 % 25.19 % (14.09 %)
Q2 2016 62.44 % 24.01 % (15.77 %)
Q3 2016 63.61 % 25.15 % (16.70 %)
Q4 2016 63.53 % 25.92 % (14.13 %)
Q1 2017 65.05 % 28.46 % (9.65 %)
Q2 2017 65.83 % 31.52 % (4.81 %)
Q3 2017 66.60 % 32.71 % (1.05 %)
Q4 2017 67.25 % 34.45 % 0.16 %
Q1 2018 67.01 % 34.79 % (1.57 %)
Q2 2018 65.81 % 35.09 % (2.22 %)
Q3 2018 65.73 % 36.27 % (1.55 %)
Q4 2018 72.03 % 42.01 % 4.41 %
Q1 2019 72.91 % 44.85 % 6.79 %
Q2 2019 75.47 % 48.22 % 8.67 %
Q3 2019 77.08 % 51.02 % 9.50 %
Q4 2019 71.17 % 48.53 % 5.79 %
Q1 2020 71.55 % 48.06 % 5.53 %
Q2 2020 70.95 % 47.63 % 4.77 %
Q3 2020 68.82 % 44.93 % 2.38 %
Q4 2020 68.78 % 43.47 % 1.56 %
Q1 2021 66.37 % 41.43 % 0.76 %
Q2 2021 65.09 % 39.66 % 0.54 %
Q3 2021 64.34 % 39.87 % 2.27 %
Q4 2021 61.83 % 39.60 % 2.71 %
Q1 2022 60.25 % 38.27 % 3.12 %
Q2 2022 57.94 % 36.88 % 4.10 %
Q3 2022 57.45 % 34.97 % 4.24 %
Q4 2022 58.57 % 34.76 % 5.60 %
Q1 2023 58.96 % 33.60 % 4.51 %
Q2 2023 60.25 % 33.23 % 4.23 %
Q3 2023 59.86 % 33.23 % 4.45 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 573.22 (2.74) (2.74) 11.22
Q2 2014 573.22 (2.67) (2.67) 10.60
Q3 2014 573.22 (2.49) (2.63) 10.10
Q4 2014 573.22 (2.21) (2.45) 9.53
Q1 2015 573.22 (2.11) (2.34) 9.04
Q2 2015 573.22 (1.88) (2.12) 8.71
Q3 2015 573.22 (1.72) (1.81) 8.31
Q4 2015 573.22 (1.70) (1.70) 7.94
Q1 2016 573.22 (1.68) (1.68) 7.45
Q2 2016 573.22 (1.91) (1.91) 6.88
Q3 2016 573.22 (1.98) (1.98) 6.42
Q4 2016 573.22 (1.71) (1.71) 6.21
Q1 2017 573.22 (1.19) (1.19) 6.28
Q2 2017 573.22 (0.61) (0.61) 6.29
Q3 2017 573.22 (0.14) (0.14) 6.30
Q4 2017 573.22 0.02 0.02 6.22
Q1 2018 573.22 (0.19) (0.19) 6.31
Q2 2018 573.22 (0.27) (0.27) 6.22
Q3 2018 573.22 (0.20) (0.20) 6.33
Q4 2018 573.22 0.58 0.58 7.00
Q1 2019 573.22 0.94 0.94 6.60
Q2 2019 573.22 1.23 1.23 6.75
Q3 2019 573.22 1.36 1.36 6.92
Q4 2019 573.22 0.85 0.85 7.16
Q1 2020 573.22 0.80 0.80 7.22
Q2 2020 573.22 0.68 0.68 7.31
Q3 2020 573.22 0.57 0.34 7.40
Q4 2020 898.73 0.29 0.14 9.71
Q1 2021 898.73 0.22 0.07 9.79
Q2 2021 898.73 0.20 0.05 9.83
Q3 2021 898.73 0.20 0.20 9.93
Q4 2021 898.73 0.24 0.24 10.06
Q1 2022 898.73 0.28 0.28 10.28
Q2 2022 898.73 0.39 0.39 10.48
Q3 2022 898.73 0.41 0.41 10.63
Q4 2022 898.73 0.61 0.56 10.91
Q1 2023 898.73 1.79 0.47 12.17
Q2 2023 898.73 1.77 0.45 11.81
Q3 2023 898.73 1.75 0.48 11.51

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 NEG NEG 2.73
Q2 2014 NEG NEG 2.76
Q3 2014 NEG NEG 3.12
Q4 2014 NEG NEG 2.00
Q1 2015 NEG NEG 1.90
Q2 2015 NEG NEG 2.09
Q3 2015 NEG NEG 1.75
Q4 2015 NEG NEG 1.68
Q1 2016 NEG NEG 1.87
Q2 2016 NEG NEG 1.82
Q3 2016 NEG NEG 1.67
Q4 2016 NEG NEG 2.13
Q1 2017 NEG NEG 2.25
Q2 2017 NEG NEG 2.34
Q3 2017 NEG NEG 2.22
Q4 2017 More than 100 More than 100 1.88
Q1 2018 NEG NEG 1.81
Q2 2018 NEG NEG 1.71
Q3 2018 NEG NEG 1.57
Q4 2018 22.77 22.77 1.89
Q1 2019 18.68 18.68 2.66
Q2 2019 16.19 16.19 2.96
Q3 2019 14.07 14.07 2.76
Q4 2019 22.14 22.14 2.62
Q1 2020 18.84 18.84 2.10
Q2 2020 26.64 26.64 2.48
Q3 2020 37.72 64.40 2.92
Q4 2020 47.02 98.82 1.40
Q1 2021 68.93 More than 100 1.53
Q2 2021 73.15 More than 100 1.48
Q3 2021 70.35 70.35 1.41
Q4 2021 50.49 50.49 1.20
Q1 2022 47.14 47.14 1.30
Q2 2022 29.18 29.18 1.07
Q3 2022 27.77 27.77 1.08
Q4 2022 16.45 17.81 0.92
Q1 2023 7.27 27.77 1.07
Q2 2023 8.02 31.68 1.20
Q3 2023 7.53 27.25 1.14

Business Segments (Million)

Compared With The
Period Mobile Telecommunications Company Zain Sales Zain Payments Zain Drones Eliminations
Q1 2018 1,685.97 - - - -
Q2 2018 1,846.43 - - - -
Q3 2018 1,951.89 - - - -
Q4 2018 2,046.24 - - - -
Q1 2019 2,016.32 679.91 - - (602.74)
Q2 2019 1,978.29 670.22 - - (591.75)
Q3 2019 1,923.51 682.16 - - (597.59)
Q4 2019 2,166.58 842.50 0.02 - (781.19)
Q1 2020 1,949.70 599.58 0.02 - (510.44)
Q2 2020 1,848.49 520.83 0.08 - (480.18)
Q3 2020 1,857.34 627.02 0.12 - (556.90)
Q4 2020 1,985.05 612.51 0.51 - (537.19)
Q1 2021 1,898.99 483.70 1.99 - (447.17)
Q2 2021 1,861.58 409.30 2.15 - (377.17)
Q3 2021 1,946.62 510.56 4.34 - (477.34)
Q4 2021 2,050.20 452.99 7.13 1.25 (428.47)
Q1 2022 2,134.13 394.10 10.43 - (360.07)
Q2 2022 2,140.45 494.49 23.33 - (452.17)
Q3 2022 2,211.37 351.65 39.93 - (316.33)
Q4 2022 2,311.89 385.36 53.21 1.12 (347.71)
Q1 2023 2,318.24 349.84 67.42 0.03 (313.37)
Q2 2023 2,289.60 323.79 72.33 (0.28) (293.06)
Q3 2023 2,423.20 285.66 74.95 0.11 (258.58)

Analysts Estimates (Million)

Item Q3 2023 (e) Q3 2023 (a) Change‬
Average 196.51 69.66 (64.6 %)

Estimates vs Actual (Million)

Item Q3 2023 (e) Q3 2023 (a) Change
Al Rajhi Capital 96.00 69.66 (27.4) %
AlJazira Capital 113.00 69.66 (38.4) %
Hermes 123.00 69.66 (43.4) %
SNB Capital 167.00 69.66 (58.3) %
Arqaam Capital 275.00 69.66 (74.7) %
Riyad Capital 296.00 69.66 (76.5) %
Goldman Sachs 305.56 69.66 (77.2) %

Current
Market Cap (M Riyal) 9,167.05
Enterprise Value (EV) (M) 16,494.18
Shares Outstanding ((M)) 898.73
EPS ( Riyal) (TTM) 0.30
Book Value (BV) ( Riyal) 11.62
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) Neg
P/E (TTM) 34.21
Price/book 0.88
Return on Average Assets (%) (TTM) 1.0
Return on Average Equity (%) (TTM) 2.6

Share Price

Mobile Telecommunication Company Saudi Arabia (ZAIN KSA)


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