Wednesday 24 June 2015
Zain KSA reports solid first quarter 2014 financial performance
- EBTIDA up 45% year-on-year to SAR 300 million (US$80 million)
- Phenomenal 68% rise in data revenues year-on-year, with the expansion of the 4G network.
- Net loss narrows by 20% year-on-year, and by 31% quarter-on-quarter
Zain Saudi Arabia (Zain KSA) recorded a significant 45% rise in EBTIDA during the first quarter of 2014, reaching SAR 300 million (US$ 80 million), up from SAR 207 million (US$55 million) in the first quarter of 2013. The company also succeeded in increasing its EBTIDA margin to 19% up from 12% during the same quarter in the previous year.
The company reported narrowing its net loss for the period by 20% year-on- year, to reach SAR 318 million (US$85 million) at the end of the first quarter 2014, also representing a 31% drop in net loss quarter-on-quarter.
Data traffic continued to grow exponentially during the quarter, with the number of mobile data users increasing by 56% year-on-year, and by 32% as compared to the fourth quarter in 2013. This increase contributed to a phenomenal 68% rise data service revenues during the first quarter of 2014 as compared to the same period in 2013, and a 23% increase as compared to the fourth quarter of the previous year.
The first quarter also saw an increase in gross profit to SAR 799 million (US$213 million) , and a rise in profit margin to 52%, compared to 45% in the first quarter of 2013, and 50% in the previous quarter.
Zain KSA’s 4G network coverage expanded to cover 51% of populated areas during the quarter, as a result of an increase in network locations, which numbered 5,918 sites at the end of the first quarter covering 94% of the population with voice services.
Commenting on Zain KSA’s successful first quarter results, Mr. Farhan bin Naif Al Faisal Aljarbaa, Chairman of the Board of Directors expressed his confidence in the company’s improving financial performance. “Zain KSA has revamped its capital structure, which has helped constructively build for a brighter, stronger future. The company’s management is working tirelessly to implement a comprehensive strategic plan based on improving Zain KSA’s network and technology while also focusing on improving the customer service experience.”
Mr. Aljarbaa reiterated that the Board of Directors has complete faith in the executive management’s ability to continue driving the operation forward.
Hassan Kabbani, Chief Executive Officer of Zain KSA, added that the company is currently focused on reinforcing its position in the market by offering the best services available and capturing opportunities in the data arena, which is growing rapidly in the Kingdom. “We are committed to offering users a compelling user experience backed by our state-of-the-art high-speed 4G LTE networks.”
He continued: “In the first quarter of 2014, Zain KSA has been able to improve its financial results and achieved the quarterly target. The company continues to implement an ambitious strategic transformation program that aims at enhancing its services through focusing on investment in further development of its network, thereby attracting and retaining larger sections of customer base.”