Riyadh – Mubasher: The Saudi Mobile Telecommunications Company (Zain) on Tuesday said that it has turned to a profit during 2017, against suffering losses a year earlier.
Zain’s net profits stood at SAR 12 million in 2017, against SAR 979 million losses in the year before, according to a statement to the Saudi Stock Exchange (Tadawul).
The firm attributed turning profitable to management’s positive actions, increase in demand for the products and service especially data products.
“Decrease in cost of sales by SAR 133 million mainly due to the increase in the data revenue contribution from 34% last year to 52% in 2017 in addition to the reduction in international calls cost,” Zain’s statement added.
Amortisation's value declined due to extending licence for 15 years.
Zain’s revenues levelled up 5% to SAR 7.3 billion during 2017, compared to SAR 6.93 billion the year before.
The telecommunications provider’s data revenue makes up 52% of total revenues with the exception of the value added and SMS services.
Operating profits hit SAR 903 million in 2017, against SAR 54 million operating losses during 2016.
Zain’s accumulated losses stood at SAR 2.26 billion in 2017, compared to SAR 2.27 billion the prior year.
In 2017, the accumulated losses represented 39% of SAR 5.84 billion capital.
Saudi Zain subscribers’ base fell 24% to 8.3 million in 2017, from compared to 10.9 subscribers in the previous year.
In October 2017, the company’s board of directors recommended cutting capital by 38% to SAR 3.62 billion, from SAR 5.84 billion in a bid to amortise the accumulated losses.
Zain’s stock shed 0.14%, closing Tuesday at SAR 7.10.
