Zain KSA Q2 Profit Jumps 60.6% to SAR 204 Million as H1 Earnings Surge 84

Riyadh | EcoPulse24

Zain Saudi Arabia reported a 60.6% year-on-year increase in second-quarter net profit, with earnings attributable to shareholders reaching SAR 204 million, compared with SAR 127 million in the same period last year, supported by stronger operating performance, lower financing costs, and reduced expected credit losses.

For the first half of 2026, the telecom operator posted net profit of SAR 405 million, up 84.1% from SAR 220 million a year earlier.

Second-Quarter Performance

Revenue remained broadly unchanged at SAR 2.651 billion, reflecting stable demand across the business despite weaker handset sales. The company said revenue quality improved, supported primarily by continued growth in its 5G consumer services.

Gross profit increased to SAR 1.654 billion, while operating profit climbed 17.7% to SAR 359 million, driven by lower depreciation and amortization expenses following the full depreciation of certain network assets.

Zain also recognized SAR 15 million in non-recurring income from the Universal Service Fund during the quarter. Financing costs declined 7% as the company continued to optimize its debt structure.

Excluding the non-recurring income, Zain said underlying net profit still increased 5% year-on-year, highlighting continued improvement in core operations.

First-Half Performance

During the first six months of the year, gross profit rose to SAR 3.314 billion, while operating profit increased to SAR 619 million as operational efficiencies and lower depreciation expenses supported profitability.

The company recorded SAR 112 million in non-recurring income from the Universal Service Fund during the period, while financing costs declined 11% following improvements in its funding profile.

After excluding the non-recurring income, underlying net profit increased 8% compared with the first half of 2025.

Capital Expenditure

Capital expenditure totaled SAR 178 million during the first half of 2026, reflecting continued investment in network expansion, customer experience, and service quality enhancements.

EcoPulse24 View

Zain Saudi Arabia's results demonstrate that profitability continues to improve even as revenue remains broadly flat. The earnings growth was driven by a stronger revenue mix, expanding 5G services, lower financing costs, reduced expected credit losses, and greater operating efficiency rather than top-line expansion. The company's positive underlying earnings growth after excluding one-off gains suggests that operational improvements are becoming increasingly sustainable.