On 2026-07-28 08:05:07 (Saudi Time), Mobile Telecommunication Company Saudi Arabia (Zain KSA) announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, Zain KSA's sales/revenue declined marginally by 0.692% YoY to SAR 5,307 million (from SAR 5,344 million in H1 2025), primarily due to a decline in handset revenues, partially offset by a favorable revenue mix improvement. Net profit attributable to shareholders surged 84.09% YoY to SAR 405 million (from SAR 220 million in H1 2025), driven by gross profit expansion of 3.207% to SAR 3,314 million (vs. SAR 3,211 million) from revenue mix improvement, a 7% increase in operating profit to SAR 619 million supported by SAR 27 million reduction in depreciation and amortization from fully depreciated assets, SAR 112 million one-off income recognized from the Universal Service Fund, and an 11% reduction in finance costs of SAR 38 million due to improved cost of debt.

Quarter-on-Quarter Performance Drivers

QoQ revenue was nearly flat at SAR 2,651 million in Q2 2026 vs. SAR 2,656 million in Q1 2026 (-0.188%), supported by a revenue mix improvement mainly from the B2B segment despite marginal top-line softness. Net profit attributable to shareholders rose slightly to SAR 204 million from SAR 201 million in Q1 2026 (+1.492%), driven by a SAR 75 million reduction in Opex (including ECL), comprising SAR 29 million from cost optimization initiatives and SAR 46 million ECL reduction mainly from TAMAM, as well as an operational profit improvement of SAR 99 million (38%) to SAR 359 million reflecting EBITDA growth of SAR 69 million and a SAR 29 million decrease in depreciation and amortization. These gains were largely offset by a significant decline in one-off income, which fell from SAR 98 million in Q1 2026 to SAR 15 million in Q2 2026, both related to the Universal Service Fund.

Other Items

The external auditor issued an unmodified conclusion with no additional comments or qualifications noted. No material risk warnings, going concern issues, or debt covenant breaches were disclosed. Total CAPEX investment for the six-month period amounted to SAR 178 million directed toward enhancing customer experience and service quality. Earnings per share improved from SAR 0.24 to SAR 0.45. The company noted that after excluding one-off gains, net profit would have increased by 8% compared to H1 2025 on a period basis, and by 5% compared to Q2 2025 on a quarterly basis.

Original announcement:

Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.