Zain Saudi swings to net profit of SAR 53 mln in H1

30/07/2017 Argaam Exclusive

View other reports

Share Price

Mobile Telecommunication Company Saudi Arabia (ZAIN KSA)

 

Mobile Telecommunication Company Saudi Arabia (Zain Saudi) turned to a net profit of SAR 53 million in the first half of 2017, compared to a net loss of SAR 578 million in the same period last year, on higher gross profit and strong demand for Zain’s products this time around.

 

Lower amortization, as well as distribution and marketing expenses also helped boost H1 results. 

 
 


Financials (M)

Item 6m 2016 6m 2017 Change‬
Revenues 3,492.29 3,783.61 8.3 %
Gross Income 2,198.35 2,549.54 16.0 %
Operating Income (140.32) 507.71 461.8 %
Net Income (578.30) 53.16 109.2 %
Average Shares 573.22 573.22 -
EPS (Riyals) (1.01) 0.09 109.2 %

In Q2, the telecom operator posted a net profit of SAR 8 million versus a net loss of SAR 328 million in Q2 2016, backed by higher gross profit and gross margins, improved demand for services, and lower distribution expenses due to cost optimization.

 

Zain Saudi’s Q2 net profit tumbled 82.2 percent when compared to the previous quarter, hurt by a decline in gross profit, lower demand for the company’s products in Ramadan and summer holidays, along with higher distribution and marketing expenses.



Current Quarter Comparison (M)

Compared With The
Item Q2 2016 Q2 2017 Change‬
Revenues 1,727.40 1,864.57 7.9 %
Gross Income 1,112.80 1,258.55 13.1 %
Operating Income (108.29) 235.01 317.0 %
Net Income (328.30) 7.69 102.3 %
Average Shares 573.22 573.22 -
EPS (Riyals) (0.57) 0.01 102.3 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2008 - - - - (543.59) - (2.47)
Q2 2008 - - - - (153.65) - (0.70)
Q3 2008 80.80 - (14.72) - (649.04) - (2.95)
Q4 2008 424.40 - 31.18 - (931.90) - (4.23)
Q1 2009 581.67 - 145.98 - (765.37) (40.8 %) (3.47)
Q2 2009 701.52 - 132.59 - (856.66) (457.5 %) (3.89)
Q3 2009 825.49 921.7 % 242.93 1750.0 % (819.73) (26.3 %) (3.72)
Q4 2009 895.38 111.0 % 355.53 1040.2 % (657.59) 29.4 % (2.99)
Q1 2010 1,094.23 88.1 % 384.34 163.3 % (662.45) 13.4 % (3.01)
Q2 2010 1,450.41 106.8 % 608.03 358.6 % (631.59) 26.3 % (2.87)
Q3 2010 1,661.95 101.3 % 712.13 193.1 % (543.79) 33.7 % (2.47)
Q4 2010 1,727.78 93.0 % 825.94 132.3 % (520.61) 20.8 % (2.36)
Q1 2011 1,484.22 35.6 % 716.02 86.3 % (531.75) 19.7 % (2.41)
Q2 2011 1,704.65 17.5 % 923.22 51.8 % (448.18) 29.0 % (2.03)
Q3 2011 1,794.81 8.0 % 870.12 22.2 % (483.81) 11.0 % (2.20)
Q4 2011 1,715.39 (0.7 %) 690.82 (16.4 %) (461.46) 11.4 % (2.09)
Q1 2012 1,521.59 2.5 % 702.20 (1.9 %) (419.99) 21.0 % (1.91)
Q2 2012 1,629.02 (4.4 %) 707.12 (23.4 %) (393.64) 12.2 % (1.79)
Q3 2012 1,529.90 (14.8 %) 711.62 (18.2 %) (493.00) (1.9 %) (0.86)
Q4 2012 1,490.16 (13.1 %) 738.98 7.0 % (442.78) 4.0 % (0.77)
Q1 2013 1,719.40 13.0 % 776.23 10.5 % (397.95) 5.2 % (0.69)
Q2 2013 1,706.35 4.7 % 830.76 17.5 % (370.41) 5.9 % (0.65)
Q3 2013 1,573.32 2.8 % 760.98 6.9 % (420.81) 14.6 % (0.73)
Q4 2013 1,523.52 2.2 % 766.88 3.8 % (462.30) (4.4 %) (0.81)
Q1 2014 1,545.77 (10.1 %) 798.66 2.9 % (318.36) 20.0 % (0.56)
Q2 2014 1,567.13 (8.2 %) 797.05 (4.1 %) (328.94) 11.2 % (0.57)
Q3 2014 1,553.00 (1.3 %) 810.67 6.5 % (315.81) 25.0 % (0.55)
Q4 2014 1,556.46 2.2 % 816.27 6.4 % (306.46) 33.7 % (0.53)
Q1 2015 1,656.79 7.2 % 874.43 9.5 % (256.72) 19.4 % (0.45)
Q2 2015 1,648.83 5.2 % 949.40 19.1 % (201.16) 38.8 % (0.35)
Q3 2015 1,763.73 13.6 % 1,062.18 31.0 % (222.95) 29.4 % (0.39)
Q4 2015 1,672.03 7.4 % 1,065.09 30.5 % (291.11) 5.0 % (0.51)
Q1 2016 1,764.88 6.5 % 1,085.55 24.1 % (250.00) 2.6 % (0.44)
Q2 2016 1,727.40 4.8 % 1,112.80 17.2 % (328.30) (63.2 %) (0.57)
Q3 2016 1,633.76 (7.4 %) 1,060.63 (0.1 %) (266.11) (19.4 %) (0.46)
Q4 2016 1,800.61 7.7 % 1,141.69 7.2 % (134.13) 53.9 % (0.23)
Q1 2017 1,919.05 8.7 % 1,290.99 18.9 % 45.47 118.2 % 0.08
Q2 2017 1,864.57 7.9 % 1,258.55 13.1 % 7.69 102.3 % 0.01

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2008 - - -
Q2 2008 - - -
Q3 2008 - - -
Q4 2008 - - -
Q1 2009 - - -
Q2 2009 16.50 % (92.47 %) (179.10 %)
Q3 2009 21.82 % (58.30 %) (133.18 %)
Q4 2009 29.19 % (35.71 %) (103.17 %)
Q1 2010 31.72 % (23.12 %) (85.21 %)
Q2 2010 37.30 % (8.97 %) (64.97 %)
Q3 2010 40.38 % 1.01 % (48.91 %)
Q4 2010 42.64 % 5.57 % (39.74 %)
Q1 2011 45.26 % 8.77 % (35.22 %)
Q2 2011 48.30 % 11.75 % (31.08 %)
Q3 2011 49.70 % 12.64 % (29.57 %)
Q4 2011 47.77 % 13.42 % (28.74 %)
Q1 2012 47.30 % 14.66 % (26.92 %)
Q2 2012 44.59 % 14.89 % (26.41 %)
Q3 2012 43.96 % 14.62 % (27.64 %)
Q4 2012 46.35 % 14.24 % (28.35 %)
Q1 2013 46.07 % 13.24 % (27.12 %)
Q2 2013 47.44 % 12.73 % (26.44 %)
Q3 2013 47.88 % 13.68 % (25.15 %)
Q4 2013 48.06 % 13.65 % (25.32 %)
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 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2008 220.28 - - 61.09
Q2 2008 220.28 - - 60.39
Q3 2008 220.28 - - 57.44
Q4 2008 220.28 (10.34) (8.44) 53.21
Q1 2009 220.28 (11.35) (11.35) 49.74
Q2 2009 220.28 (14.54) (14.54) 45.85
Q3 2009 220.28 (15.32) (15.32) 42.13
Q4 2009 220.28 (14.07) (14.07) 39.14
Q1 2010 220.28 (13.60) (13.60) 36.14
Q2 2010 220.28 (12.58) (12.58) 33.27
Q3 2010 220.28 (11.33) (11.33) 29.90
Q4 2010 220.28 (10.71) (10.71) 27.83
Q1 2011 220.28 (10.11) (10.11) 25.58
Q2 2011 220.28 (9.28) (9.28) 23.62
Q3 2011 220.28 (9.01) (9.01) 21.58
Q4 2011 220.28 (8.74) (8.74) 19.49
Q1 2012 220.28 (8.23) (8.23) 17.79
Q2 2012 220.28 (7.98) (7.98) 16.00
Q3 2012 573.22 (3.08) (3.08) 15.53
Q4 2012 573.22 (3.05) (3.05) 14.74
Q1 2013 573.22 (3.01) (3.01) 14.05
Q2 2013 573.22 (2.97) (2.97) 13.40
Q3 2013 573.22 (2.85) (2.85) 12.67
Q4 2013 573.22 (2.88) (2.88) 11.79
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

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2008 - - 4.80
Q2 2008 - - 6.26
Q3 2008 - - 5.04
Q4 2008 NEG NEG 3.09
Q1 2009 NEG NEG 3.20
Q2 2009 NEG NEG 3.95
Q3 2009 NEG NEG 3.99
Q4 2009 NEG NEG 4.00
Q1 2010 NEG NEG 4.16
Q2 2010 NEG NEG 3.92
Q3 2010 NEG NEG 4.08
Q4 2010 NEG NEG 4.30
Q1 2011 NEG NEG 4.16
Q2 2011 NEG NEG 4.51
Q3 2011 NEG NEG 4.47
Q4 2011 NEG NEG 4.39
Q1 2012 NEG NEG 9.41
Q2 2012 NEG NEG 7.52
Q3 2012 NEG NEG 1.95
Q4 2012 NEG NEG 1.58
Q1 2013 NEG NEG 1.71
Q2 2013 NEG NEG 2.18
Q3 2013 NEG NEG 2.22
Q4 2013 NEG NEG 2.33
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

Analysts Estimates (Million)

Item Q2 2017 (e) Q2 2017 (a) Change‬
Average 36.37 7.69 (78.8 %)

Estimates vs Actual (Million)

Item Q2 2017 (e) Q2 2017 (a) Change
Hermes 22.00 7.69 (65.0) %
Al Rajhi Capital 30.00 7.69 (74.4) %
SNB Capital 31.00 7.69 (75.2) %
Albilad Capital 40.00 7.69 (80.8) %
Riyad Capital 46.00 7.69 (83.3) %
AlJazira Capital 49.20 7.69 (84.4) %

Current
Market Cap (M Riyal) 10,155.65
Enterprise Value (EV) (M) 17,320.66
Shares Outstanding ((M)) 898.73
EPS ( Riyal) (TTM) 0.47
Book Value (BV) ( Riyal) 11.86
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 35.98
P/E (TTM) 24.11
Price/book 0.95
Return on Average Assets (%) (TTM) 1.5
Return on Average Equity (%) (TTM) 3.9

Comments {{getCommentCount()}}

Be the first to comment

{{Comments.indexOf(comment)+1}}
{{comment.FollowersCount}}
{{comment.CommenterComments}}
loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.