Monday 15 July 2019
Zain KSA Achieves Highest Mid-Year Revenue Ever
A net profit of SR 260 million for the first half of the year
Zain KSA Achieves Highest Mid-Year Revenue Ever
Zain KSA continued its outstanding financial performance streak by posting profit for the second quarter of this year; an achievement that reflects its high-quality operational capabilities, thereby enhancing the company's positioning and competitive advantage in the local market.
In this regard, Zain KSA announced that it had concluded the second quarter of the current fiscal year, 2019, with a net profit for the fourth quarter in a row, continuing the strong growth that closed last fiscal year, 2018, the first quarter of current year, 2019.
The company's revenues for the 2nd quarter of 2019 grew by 11% compared to the second quarter of the previous year, amounting to 210 million riyals. This can be attributed to increasing market demand for the company's services and products. The company also recorded the highest revenue ever for a period of six months, first half of the year, amounting to 4.15 billion riyals compared to 3.53 billion riyals during the same period of the previous year, an increase of 17.5%.
Zain KSA posted a net profit of SAR 130 million in the second quarter of 2019 compared to a net loss of SR 38 million in the same quarter last year. The company also recorded a net loss of SAR 1,834 million during the current quarter, compared to SAR 1,964 million in the previous quarter. This decrease is due to net profit for the quarter.
Commenting on the company's results, HH Prince Nayef bin Sultan bin Mohammed bin Saud Al-Kabeer, Chairman of Zain KSA, said that achieving this positive growth in revenues marks the success of the company's strategic plans, " Zain KSA's staff and executive management have been doing a remarkable job, and their collective efforts to meet the expectation of the company's management, its shareholders and customers have led to this positive performance."
HH also reiterated that the company works diligently to have a positive impact in the competitive Saudi telecom sector by providing high quality services on the one hand, and empowering and training Saudi staff on the other, adding, "Our ambition is driven by the nation's thriving economy and an inspirational national vision."
Eng. Sultan bin Abdulaziz AlDeghaither, Chief Executive Officer of Zain KSA, said: "We are tremendously proud of continuous positive financial performance of the company. At Zain KSA, we are actively working on contributing to a greater growth across the Saudi ICT sector, in harmony with Vision 2030."
"The rising demand for Zain KSA's various products and services reflects the increasing brand credibility", adding " Continuous elevation of of service quality is a strategic goal for Zain KSA, and this is mirrored in increasing demand for the company's services for the private and business sectors. "
Eng. AlDeghaither went on to say, "Zain KSA continues to invest in infrastructure, development and boosting of its services and network, such as 5G, digital payment services, cloud computing, the expansion of fiber optics for homes, as well as meeting the growing and diverse needs of ICT services and expanding the company's portfolio of services provided to business customers, including regular upgrades to the network."
According to the company's financial results, pre-financing, taxes, amortization and amortization (EBITDA) profits during the second quarter of this year reached SR 944 million, representing 46% of revenues, compared to SR 615 million, representing 33% of revenues during the quarter. Similar to the previous year. EBIT also improved to SR 374 million compared to SR 179 million for the same quarter last year.
Zain KSA also confirmed that it has achieved the objectives of the settlement agreement with MoF, MCIT and CITC. This resulted in the reversal of net related provisions during the second quarter with a value of SAR 129 million. This quarter also witnessed the culmination of a SAR 2.25 billion facility refinancing agreement, which was converted into an Islamic Murabaha contract.
"Shabab" and "Visitors" packages for the pilgrims have been met with high demand during the last quarter, which resulted in the company continuing to achieve positive financial results for the fourth quarter in a row.
During this quarter, Zain KSA has made an early voluntary payment of Murabaha Financing Agreement of SAR 300 million, demonstrating the continued cash flow of the company and bringing the total payments made during the past nine months to SR 1,425 million.
In related news, Zain KSA has unveiled its 5G technology at Neom Bay Airport, the region's 5G covered airport, signifying the company's dedication to aligning with technological advancement in Saudi mega-projects.
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