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Zain KSA announces double digit subscriber growth in 2013 Results

Wednesday 24 June 2015

Zain KSA announces double digit subscriber growth in 2013 Results

•    Further decrease in net loss by 6% year on year to SAR 1.6 billion for FY 2013

“Zain KSA” made solid progress during the year with revenue growth of 6% reaching SAR 6.5 billion and a 10% increase in subscribers to 8.7 million, up from 7.9 million the previous year. The mobile broadband segment proved to be a catalyst for growth in 2013, with revenues increasing year on year. Post-paid revenues also grew by 16% year on year strengthening the higher value customer segment.

Gross profit recorded double digit growth of 10%, increasing from SAR 2.9 billion in 2012 to SAR 3.1 billion at year-end 2013, leading to a gross profit margin of 48% for the year, up from 46% at year-end 2012. The company also focused on increasing efficiencies and lowering costs, reducing general and administrative expenses by 26% year on year.

Net loss narrowed further from SAR 1.7 billion for FY 2012 to SAR 1.6 billion at year end 2013 due to topline growth, financial restructuring and operational efficiency improvements during the year.

During the quarter, gross profit margin increased to 50% up from 48% in Q3 2013 and 44% for Q4 2012, EBITDA margin remained stable at 14% and net loss stood at SAR 462 million.

Commenting on the FY 2013 results, Fahd bin Ibrahim Al-Deghaither, Chairman of the Board of Directors of Zain KSA, said:

“2013 has been a stepping stone in the evolution of Zain KSA. We have made good progress in improving our capital structure by successfully refinancing the Murabaha Facility Arrangement to a lower interest and longer term tenure. In addition, we entered into an agreement with the Ministry of Finance to defer royalty fees payable to the government for seven years.

 “During 2013, we increased our customer base by 10% to a total of 8.7 million customers, partly due to the solid progress made in the mobile broadband (MBB) segment.

Hassan Kabbani, Chief Executive Officer, Zain KSA said:

“Zain KSA maintained stable revenues, lowered net loss and increased efficiencies in 2013. We now have a solid base for entering the next phase of growth for Zain KSA, we implemented a strategic program, aimed at enhancing our services, focusing on the strength of our network and developing valuable partnerships.

Our goals are to boost market share and continue capturing MBB market opportunities. MBB data traffic significantly increased 48% versus Q3 2013, 116% year on year and by 118% compared to Q4 2012. The growth in data traffic came as a result to the growth in MBB subscribers during Q4.

“In a competitive telecom market, we are proud to offer customers a fast and reliable network, and we are confident Zain KSA is well positioned to take advantage of the current market opportunities and achieve sustainable and profitable growth in the future.”