On 2026-05-07 08:02:02 (Saudi Time), Mobile Telecommunication Company Saudi Arabia (Zain KSA) announced its Interim financial results for the three months ended on March 31, 2026.

Year-on-Year Performance Drivers

Sales declined 1.263% YoY to SAR 2,656 million primarily due to reduced handset sales, despite growth in the consumer segment. Net profit surged 116.129% to SAR 201 million, driven by improved gross profit margins from a 9.8% reduction in cost of revenue, SAR 98 million one-off income from Universal Service Fund, and SAR 26.3 million reduction in finance costs from debt optimization, partially offset by increased operating expenses and higher expected credit losses.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 8.03% from SAR 2,888 million to SAR 2,656 million, primarily due to seasonality mainly related to device sales. Net profit decreased 12.99% from SAR 231 million to SAR 201 million despite a SAR 98 million one-off income from Universal Service Fund. The decline was driven by a SAR 64 million decrease in gross margin and SAR 84 million increase in operating expenses from network expansion and maintenance costs, partially offset by SAR 12 million reduction in finance costs.

Other Items

The external auditor issued an unmodified conclusion with no additional comments or qualifications noted. Total shareholders equity increased 2.585% to SAR 11,071 million. Earnings per share improved from SAR 0.1 to SAR 0.22. The company invested SAR 79 million in CAPEX during the period to enhance customer experience and service quality.

Original announcement:

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