Wednesday 24 June 2015
Zain KSA posts improving Financial Results
Zain KSA announced improving financial results for the 3rd quarter of 2014, recording a significant 21% increase in EBITDA during the first nine months of 2014, reaching SAR 825 million up from SAR 684 million in the same period of 2013. The company also succeeded in raising the EBITDA Margin to 18%, up from 14% during the same period of last year.
The company narrowed its net losses during the third quarter by 25%, reduced to SAR 316 million from SAR 421 million during the third quarter of 2013, reflecting a 19% drop in net loss during the nine months of this year compared to the same period last year. Gross margin increased to reach 52% in the nine month period, up from 47% in the same period of 2013.
Mobile broadband service customers increase by 145% in in the first nine months of 2014 compared to the same period of last year. As data traffic in the internet segment continues to increase significantly, attaining a growth rate of 541% in the nine month period of 2014 compared to the same period of 2013, and 673% increase in the third quarter of 2014 compared to same quarter of last year.
Commenting on these results, Farhan bin Naif Alfaisal Aljarbaa, Chairman of the Board of Directors of Zain KSA said “The company is steadily moving forward on improving its financial results. Tangible results from the Company’s transformation program are starting to be realized.”
On his part, Hassan Kabbani, Chief Executive Officer of Zain KSA, said “We are starting to see the positive signs of the transformation plan which includes the network development and expansion agreements signed with our strategic partners during quarter two of this year.”
Kabbani continued stating that, “The Company reported a substantial increase in mobile data service due to the ever improving quality of our state-of-the-art 4G network to meet the growing demand especially from broadband services.
“Enhancing service quality by investing in the development of Zain network performance and providing qualitative customer experience are an essential part of our transformation plan, with the full support of the Board of Directors, Zain Group and the founding shareholders, as well as the combined efforts of all of the Zain team.”