Wednesday 24 June 2015
Zain KSA concludes 2014 with significant growth
Zain KSA posted improved financial results for the fourth quarter of 2014, ending 31 December, 2014, recording a significant 33% increase in EBITDA to reach SAR 275 million (USD 73.3 million) up from SAR 206 million (USD 54.9 million) in Q4 2013. Zain KSA’s EBITDA margin rose to 17% in Q4 2014, up from 14% during the same period of 2013.
Net losses narrowed by 34% year-on-year during the quarter to SAR 306 million (USD 81.6 million), down from SAR 462 million (USD 123.2 million) a year earlier, and reflect a 23% drop in net loss for the year.
The company also recorded an increase in gross margin to reach 52% in 2014, up from 48% in 2013.
In terms of operations, mobile broadband service customers grew by 147% in the twelve-month period in 2014. Mobile Internet data traffic continues to increase significantly, attaining an incredible growth rate of 621% Y-o-Y for the full-year 2014, and 45% Y-o-Y increase in Q4 2014.
Commenting on the results, Eng. Farhan bin Naif Alfaisal Aljarbaa, Chairman of the Board of Directors of Zain KSA said, “All indicators show that the company is moving steadily towards improving its financial results, backed by the transformation plan that was implemented by the management early last year.”
He continued, “Many decisions were taken with the aim of improving the company’s position, including the Board Of Directors’ recommendation to convene an Extraordinary General Meeting (EGM) to seek the approval for a reduction in the company's capital from SAR 10,801,000,000 (USD 2.880 billion) to SAR 5,837,291,750 (USD 1.557 billion), resulting in a reduction by 45.96%. This came after a study prepared by the company’s executive management and external consultants; to write-off all of the company’s accumulated losses to 30 September 2014.”
Mr. Hassan Kabbani, Chief Executive Officer of Zain KSA, commented: “We reported tangible growth on all fronts during 2014. We continue to conduct business in a transparent manner, even under difficult circumstances. Many new customers are using Zain to provide them with Internet services; thanks to the quality and reliability of our state-of-the-art 4G LTE network.”
“We consider ourselves the operator that puts the customer first, the operator who really cares for their customers. We are still committed to enhancing our services and our network’s coverage & capacity. Customer feedback regarding our new look shops has been particularly positive.”
He concluded, “We achieved these positive results thanks to the full support of Zain Group, the Board of Directors, as well as the combined efforts of all of the Zain team.”