The financial results announced by Zain Group, the Kuwaiti mobile telecommunications company, on Thursday on the stock exchange website showed a decline in its quarterly profits by 8.7 percent in the second quarter on an annual basis.
Zain Kuwait achieved a net profit of 52.196 million dinars ($170.64 million) in the second quarter, compared to 57.186 million dinars a year ago. It also achieved quarterly revenues of 478.7 million dinars, an increase of 3.7 percent on an annual basis.
The company attributed this decline to the presence of non-recurring profits related to the claims of the number range for Zain Kuwait operations, amounting to 24.68 million dinars in the profits of the second quarter of 2023.
It said that if non-recurring profits are excluded, the growth of the adjusted net profit will reach 55 percent in the second quarter compared to what it was a year ago.
Regarding the performance of the first half, Zain Kuwait's profits decreased by 37 percent to reach KWD 81.42 million ($266 million), compared to profits of KWD 128.78 million during the same period in 2023.
The reason for the decrease in profits is due to the fact that the first half of the previous year included profits from a sale and leaseback transaction worth KWD 93.50 million compared to nothing during the current period.
It is also due to the increase in general and administrative expenses by 7 percent to reach KWD 289.71 million compared to KWD 269.90 million during the same period and the increase in depreciation, amortization and impairment expenses by 7 percent to reach KWD 175.99 million compared to KWD 164.48 million during the same period of the previous year.
As well as the increase in financing costs by 7 percent to reach KWD 64.28 million, compared to KWD 60.07 million during the first half of 2023.
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