Monday 29 October 2018
10-year anniversary sees Zain Saudi Arabia record its best-ever quarterly net profit of SAR 48 million
Zain Saudi Arabia (Zain KSA) has recorded its best-ever quarterly results since inception, for the three months ending 30 September 2018, with several key financial indicators showing record growth levels, reflecting the implementation of the operator’s turnaround strategy. This milestone was achieved as the company celebrated a decade of commercial operation of mobile voice and data services in the Kingdom.
Zain KSA’s strong performance in the third quarter of 2018 (Q3, 2018) was driven by a focus on operating efficiencies, investment in network upgrades and fiber (FTTH) expansion, customer service and acquisition strategies, new service developments and data monetization initiatives, continued growth in the Enterprise (B2B) segment, as well as the benefit of the pilgrimage season.
Key performance indicators at Zain KSA for Q3, 2018 compared with Q3, 2017:
Zain KSA recorded revenues of SAR 1.952 billion in Q3, 2018, an 8% increase when compared to Q3, 2017. This revenue, the highest ever recorded by Zain KSA in a quarter, also reflects a 6% rise in revenues over Q2, 2018.
Notably, the operator recorded a significant 15% increase in EBITDA to reach SAR 728 million during Q3, 2018 (another milestone), up from SAR 631 million in Q3, 2017, reflecting an EBITDA margin of 37%, up from 35% in Q3, 2017.
Zain KSA reported net profit in Q3, 2018 of SAR 48 million, the highest quarterly net profit it has ever recorded, a marked improvement on the SAR 3 million recorded in Q3, 2017.
Furthermore, it should be noted that the impact of the decrease in the mobile termination rates, affected Zain KSA’s revenues by SAR 35 million for Q3, 2018. If not for such impact, third quarter revenues would have increased by 10% (instead of 8%) when compared to Q3, 2017. Also impacting revenues negatively is the ongoing adverse effect of the lifting of the ban on VoIP applications on international calls.
HH Prince Naif bin Sultan bin Mohammed bin Saud Al-Kabeer, Chairman of Zain KSA commented, “I am extremely pleased with these tremendous third quarter results, which reflects the hard work and dedication of all Zain KSA employees together with the profound support offered by Zain Group. The Board of Directors totally supports the strategic transformation plan that is underway and that contributed to achieving these milestone financial results.”
HH Prince Naif continued, “In line with the Kingdom’s 2030 economic vision, Zain KSA is committed to investing in the expansion of fiber optics to homes and businesses across the Kingdom, while focusing on digital innovation and the improvement of customer care. The evolving economic and regulatory environment in the Kingdom, as well as the intense competition in the telecommunications sector requires us to give our best in every aspect of our operations in order to remain competitive.”
Eng. Sultan Bin Abdulaziz AlDeghaither, CEO of Zain KSA said, “We have achieved remarkable results and made tremendous progress in our business performance due to our cost optimization and efficiency drive combined with the introduction of monetization initiatives that appeal to individual and enterprise customers. We shall continue to invest and provide for the fast-growing needs of the Kingdom’s savvy data users, through the expansion of fiber-to-the-home services and network upgrades."
Eng. AlDeghaither continued, "Since our beginnings a decade ago, Zain KSA has remained an innovator of modern technologies and advanced mobile services. We are very active and focused on playing our contributory role in helping the Kingdom achieve the ambitions of the National Transformation Program 2020 as well as implementing initiatives that will contribute to achieving the objectives of Vision 2030."
To diversify and enhance the appeal of its data-centric commercial offerings across the Kingdom, Zain KSA partnered with Dawiyat, a subsidiary of Saudi Electricity Company to offer thousands of households’ superfast broadband services over the Fiber to the Home (FTTH) network.
Zain KSA’s latest quarterly results coincide with the celebrations of the operator’s tenth anniversary of commercial operation in the Kingdom, highlighting its importance as a key contributor to the economy of the Kingdom. In the framework of its vision of sustainability and digital transformation, Zain KSA is committed to supporting development programs, unlocking opportunities for the youth and aspiring entrepreneurs.