Mobile Telecommunication Company Saudi Arabia “Zain KSA” announces its Annual Consolidated Financial Results for the Year Ending on 2022-12-31

Mobile Telecommunication Company Saudi Arabia “Zain KSA” announces its Annual Consolidated Financial Results for the Year Ending on 2022-12-31

|Element List||Current Year||Previous Year||%Change|

|Sales/Revenue||9,075||7,901||14.86|

|Gross Profit (Loss)||5,315||4,885||8.8|

|Operational Profit (Loss)||1,089||699||55.79|

|Net Profit (Loss) after Zakat and Tax||550||214||157.01|

|Total Comprehensive Income||760||310||145.16|

|Total Share Holders Equity (after Deducting Minority Equity)||9,800||9,040||8.41|

|Profit (Loss) per Share||0.61||0.24|

|All figures are in (Millions) Saudi Arabia, Riyals|

|Element List||Explanation|

|The reason of the increase (decrease) in the net profit during the current year compared to the last year is|| Zain KSA achieved the highest net profit in its history, reaching a record SAR 550 million for the year ended 2022 compared to SAR 214 million in 2021, a 157% increase.

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The reason for the increase in the net profit is mainly due to the following:

- Achieving the highest revenues in the “Zain KSA” history, amounting to SAR 9.1 billion for 2022, a 15% increase compared to 2021 revenues (SAR 7.9 billion). This increase was due to the growth in B2B, 5G revenues, and the return of international visitors (for Umrah and business) after relaxing the COVID pandemic restrictions, in addition the growth in Tamam revenue.

- The cost of revenue has increased by 25%. Nonetheless, the gross profit increased by SAR431 Million or 9%.

- OPEX increased by SAR404 million while the amortization and depreciation decreased by SAR 364 million due to the reclassification of the tower's assets to