Zain up, Leejam down in 2Q

One-off gains boost Zain KSA

Zain KSA reported a 60.6% y-o-y increase in net gain to SAR 204 mn in 2Q 2026, it said in a Tadawul disclosure. Revenue was nearly flat at SAR 2.7 bn, down just 0.1% y-o-y, as a decline in handset sales offset a richer revenue mix weighted toward consumer 5G.

The net income jump was mostly below the line. The gain came less from the business and more from one-time and cost items like a SAR 81 mn drop in expected credit losses as the group’s Tamam unit collected on previously written-off receivables, lower depreciation on fully depreciated assets, a SAR 15 mn one-off from the Universal Service Fund, and reduced finance costs from a reworked debt profile. Zain KSA said that stripping out the one-off gains, 2Q net income would have risen 5% rather than 60.6%.

1H told the same story, with net income up 84% y-o-y to SAR 405 mn on one-offs, while revenue was down 0.7% to SAR 5.31 bn. Ex-one-offs, the company put underlying first-half bottom-line growth at 8%.

REMEMBER- Zain started the year by overhauling its debt stack, replacing older, higher-cost borrowings with two shariah-compliant facilities: a SAR 5.5 bn murabaha from a five-bank syndicate to refinance SAR 4.7 bn of maturing debt on favorable terms, and a SAR 1.9 bn loan from Al Rajhi Bank to settle its outstanding Finance Ministry facility.

Leejam Sports’ expansion push eats its margins

Leejam Sports saw 2Q net income fall 12.5% y-o-y to SAR 63 mn in 2Q 2026, even as revenue rose 9.3% y-o-y to SAR 411 mn, according to a Tadawul disclosure. The gap opened up as the cost of the gym operator’s fast-expanding network outran the revenue those new centers are bringing in.

Net income fell because the network is still maturing. Leejam added 23 fitness time centers over the past year, and newly opened sites drag on margins until they fill up: gross margin narrowed 2 percentage points, general and administrative costs rose 17%, and finance costs climbed 32% on higher borrowings from capital spending.

As for 1H: Net income fell 21.7% y-o-y to SAR 112 mn in 1H, while revenue climbed by 4.8% y-o-y to SAR 780 mn. However, expansion spending is easing. Cashflow nearly tripled to SAR 195 mn in the first half, up from SAR 69 mn a year earlier, as capital expenditure fell to SAR 111 mn from SAR 207 mn.

Dividends: The company will distribute SAR 38.2 mn in dividends for 2Q 2026, or SAR 0.77 per share, on 10 August, according to a separate disclosure.

In other earnings news

Nama Chemicals will miss the deadline to publish its 1H 2026 financial results, citing delays in completing the review of its FY 2025 consolidated financial statements and 1Q 2026 results, according to a Tadawul disclosure. The company said it is working with an external auditor to review its remaining 2026 financial statements and 1Q 2027 results and will publish the delayed filings once they are finalized and approved. Trading in its shares has been suspended since 30 April.