Wednesday 24 June 2015
Zain KSA reports significant growth in 2014
Zain KSA posted improved financial results for the financial year ending 31 December, 2014, recording a significant 24% increase in EBITDA to reach SAR 1,100 million up from SAR 890 million in 2013. Zain KSA’s EBITDA margin rose to 18% in 2014, up from 14% during the same period of 2013.
Net losses narrowed by 23% during 2014 to SAR 1,270 million, down from SAR 1,651 million the previous year. The company also recorded an increase in gross margin to reach 52% in 2014, up from 48% in 2013.
Mobile broadband service customers grew by 147% during 2014. While mobile Internet data traffic continued to increase significantly, attaining an incredible growth rate of 621% compared to 2013.
Commenting on the results, Eng. Farhan bin Naif Alfaisal Aljarbaa, Chairman of Zain KSA’s Board of Directors said, “The company is steadily strengthen its financial situation, and the BOD fully trust and backs the transformation plan implemented by the management since early last year.”
Eng. Alfaisal Aljarbaa, thanked The Communications & Information Technology Commission for its decision to drop fixed termination rates, indicating that this will enhance competition in the telecommunications sector and will benefit subscribers.
Mr. Hassan Kabbani, Chief Executive Officer of Zain KSA, commented: “We are pleased with the substantial growth in our results, and what the increase in our customer base is indicating, especially their trust in our Internet services provided to them; thanks to the quality and reliability of our state-of-the-art 4G LTE network.”
“The CITC new regulations regarding mobile and fixed termination rates will increase competitiveness in the market, and will allow consumers to freely move between operators.”
He concluded, “We are fully committed to our ambitious transformation plan with the support of Zain Group, the Board of Directors, as well as the combined efforts of all of the Zain team.”