Zain Group announces its operation in Saudi Arabia (Zain KSA) recording all-time high financial results for the year 2023, reporting an annual revenue of SAR 9.9 billion, an impressive annual 9% growth. This revenue surge propelled Zain KSA to achieve its highest-ever annual profit, reaching SAR 1.3 billion, a remarkable annual increase of 131%.
For the second consecutive year, the Company also announced the Board of Directors’ recommendation to distribute cash dividends to shareholders for the year 2023 at a rate of 5% of the nominal share value.
This record net profit for the year was driven by the total net gain from the sale and leaseback transaction of all 8,069 towers which was fully recognized during 2023, for a total of USD 303 million.
Zain KSA’s positive financial results resonate with its sustainability focused strong operational and financial performance, driven by its emphasis on 5G services and solutions, robust enterprise (B2B) and wholesale sector revenues, and a notable boost in demand for appealing individual digital services, most notably, the Yaqoot digital operator service and Taman, the company’s microfinance arm.
Commenting on the financial results, Zain Vice Chairman & Zain Group CEO, and Zain KSA Vice-Chairman, Bader Al-Kharafi, said, “These record results reflect the Zain Group and Zain KSA teams’ joint efforts in implementing the operator’s profitable operational and efficiency optimization strategy, driven by innovation and growth of digital services. Moreover, the Zain KSA Board’s decision to distribute dividends for the second consecutive year reflects the improved financial solvency of the company and its focus on sustainable growth powered by its robust 5G network empowering the community and lucrative enterprise sector.”
Al-Kharafi added, “Together, Zain Group and Zain KSA share a unified mission in playing our key supporting role in the Kingdom’s Vision 2023 and maximizing value for our shareholders in unison with a corporate sustainability agenda that focuses on providing meaningful connectivity leading to equitable systemic change.”
Through its 2023 corporate sustainability strategy that focuses on, 1. Safeguarding the planet; 2. Addressing societal challenges through the core business; 3. Enabling an inclusive digital society; and 4. Build the youth of the future, Zain KSA seamlessly integrated environmental, social, and corporate governance (ESG) principles into operational, financial, and administrative processes, driving innovation and responsible achievements.
The operator’s focus on green technology saw it launch the world’s first zero-emission 5G network, designed and implemented in the Red Sea. Zain KSA’s framework agreement with Shareek, the Private Sector Partnership Program, paved the way for the development of several hyper-scale data centers to attract global companies and empower modern technological investments across the Kingdom. These efforts are a few examples that resulted in Zain KSA’s upgraded A classification within the MSCI ESG Index.
