Zain KSA profits grow at a faster rate than the Saudi Economy

Zain KSA profits grow at a faster rate than the Saudi EconomyMobile Telecommunications Company Saudi Arabia (Zain KSA), announced on Sunday its third quarter financial results for the period ended Sept.30, 2013.

Zain KSA continued to build on the strong positive momentum in the first half of 2013 with further improvements in the company’s financial performance for the third quarter of 2013. Revenue and gross profit increased 7 percent to SR1.6 billion ($420 million) and SR761 million ($203 million), respectively, compared to the same period last year, leading to a significant 44 percent growth in EBITDA.
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Commenting on the Q3, 2013 results, Fahd bin Ibrahim Al-Deghaither, chairman of the Board of Directors of Zain KSA, said: “Q3, 2013 performance was primarily driven by a healthy 24 percent customer growth, reaching a total of 8.6 million customers, enhanced mobile Internet usage, the implementation of greater operating efficiencies throughout the business and lowered net financing costs and resulted a further 15 percent reduction in net loss”.

“A key milestone achieved this quarter was the successful refinancing of our $2.3 billion Murabaha facility which served to ensure Zain KSA’s viability going forward, improving cash flow and liquidity and creating flexibility to support the further expansion and development of our network.”

“Net loss decreased 15 percent to SR421 million ($112 million) in Q3, 2013 from SR493 million ($131) in Q3 2012 and decreased 9 percent to SR1.2 billion ($317 million) in the nine-month period of 2013 from SR1.3 billion ($348 million) in the nine-month period of 2012.”

Hassan Kabbani, chief executive officer, Zain KSA said: “I am delighted to have joined Zain KSA, and to lead our team towards ensuring the success of the company’s plan to keep up with the growth and prosperity of the telecommunications sector in the Kingdom and make use of its rapid development.”

“The good progress we made during his quarter reflects the costumers confidence in the company’s’ services and its high-performance network. This growing confidence drives us to continue to invest in the development of the network and increasing its capacity using the latest communications technologies. I would like to thank my colleagues in Zain KSA for their efforts to improve the company’s performance and achieve our goals.
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