RIYADH, Zain Saudi Arabia’s net income for the first nine months of 2019 reached a record SAR 380 million (USD 102 million), said a press release Friday.
Zain KSA announced impressive financial results for key indicators for the nine months and third quarter ended September 30, 2019, where the company served 7.7 million customers, Zain Group said in the release.
For the first nine months of 2019, Zain KSA generated revenues of SAR 6.16 billion (USD 1.64 billion), up 12.3 percent compared to the same period in 2018, while EBITDA for the period increased by 49 percent to SAR 2.85 billion (USD 761 million), reflecting an EBITDA margin of 46 percent.
Net income for the nine months soared to reach an unprecedented SAR 380 million (USD 102 million), reflecting a significant improvement on the net loss of SAR 67 million (USD 18 million) reported in the same period of 2018, highlighting an improvement of circa SAR 447 million (USD 119 million).
For the three months to September 30, 2019 (Q3), Zain KSA recorded revenues of SAR 2 billion (USD 536 million), a three percent increase on Q3 2018.
EBITDA for the period reached SAR 949 million (USD 253 million), reflecting a 47 percent EBITDA margin, up 31 percent on Q3 2018.
Net income for Q3 2019 amounted to SAR 121 million (USD 32 million), reflecting a significant improvement on the net income of SAR 48 million (USD 13 million) reported for Q3 2018.
Commenting on Q3 2019 results, Bader Al-Kharafi, Zain Vice-Chairman and Group CEO, and Zain KSA Vice-Chairman said, “The impressive operational performance in reporting five consecutive quarters of profit clearly demonstrates the success of the company’s digital growth strategy that has placed the company in a much stronger financial position and also seen its market capitalization more than double over the last 12 months.” “Zain KSA’s success and continued financial growth was due to the increased demand for the company’s innovative digital products and services offered to B2B and individual customers; a direct result of the operator’s superior network quality. Additionally, the reduction in the tariff of the annual royalty fees for commercial service from 15% to 10% of net revenues has contributed to the company’s financial performance,” Al-Kharafi added.
Al-Kharafi expressed optimism over the continuation of this upward trend in Zain KSA’s financial results, supported by the company’s continued investment in new services and technologies, the latest of which was the launch of the first phase of commercial 5G services, which has now been extended to 23 cities in the Kingdom through 2200 towers. The initial launch will be followed by a gradual expansion of the network to cover a total of 26 Saudi cities utilizing 2,600 towers by the end of 2019.
“Zain KSA will also rely on 5G technology to enhance IoT, smart city and digital payment services in the near future. This reflects the company’s commitment to encourage innovation and stimulate the development of new sectors in the Kingdom that open the door to a new era of economic growth and enhance job creation opportunities for Saudi youth,” Al-Kharafi said.
Al-Kharafi concluded by expressing his sincere gratitude to the leadership of the Kingdom of Saudi Arabia for creating an environment in which companies such as Zain KSA can thrive.
“The Board and executive management teams of Zain Group and Zain KSA are committed to playing a key role in the Kingdom’s ICT sector and offering customers quality and life empowering telecommunications services in line with Vision 2030. It is gratifying to have authorities at all levels of government support and commit to our presence in the Kingdom in such a positive manner. Such support further increases the attractiveness of the Kingdom’s economy, contributing to its ongoing prosperity.” Zain KSA benefits greatly from the expertise and resources of its parent Zain Group, which supports Zain KSA in being a leader in the sector and driving technology innovation in the Kingdom forward.
Source: Kuwait News Agency