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الاقتصادية
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Zain boosts profits despite steady revenue
The results of Saudi Telecom Company Zain Saudi Arabia for the second quarter of 2026 showed a decline in device sales alongside steady revenues, with net profit increasing by approximately 61% to reach 204 million riyals. However, this rise does not reflect a fundamental improvement in activity, as growth, excluding non-recurring income, slowed to about 5%. Profits are primarily driven by an improved sales mix and a reduction in certain expenses, especially with increased reliance on 5G services and business segments, which helped raise the gross profit margin to 62.4%. While the margin improvement reflects growth in 5G subscriber base and better quality of Tamaam's portfolio, the decline in device sales and rising network costs remain significant pressures. The sustainability of growth continues to depend on boosting revenue and enhancing device sales availability, along with monitoring capital expenditures and debt levels to ensure stable performance in the second half of the year.
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