Zain KSA transformation plan yields positive results
Zain KSA announced improving financial results for the 3rd quarter of 2014, recording a 21 percent increase in EBITDA during the first nine months of 2014, reaching SR825 million, up from SR684 million in the same period of 2013.
The company also succeeded in raising the EBITDA margin to 18 percent, up from 14 percent during the same period of last year.
The company narrowed its net losses during the third quarter by 25 percent, reduced to SR316 million from SR421 million during the third quarter of 2013, reflecting a 19 percent drop in net loss during the nine months of this year compared to the same period last year. Gross margin increased to reach 52 percent in the nine month period, up from 47 percent in the same period of 2013.
Mobile broadband service customers increased by 145 percent in the first nine months of 2014 compared to the same period of last year. The Internet segment of data traffic continues to increase significantly, attaining a growth rate of 541 percent in the nine-month period of 2014 compared to the same period of 2013, and 673 percent increase in the third quarter of 2014 compared to same quarter of last year.
Farhan bin Naif Alfaisal Aljarbaa, chairman of the board of directors of Zain KSA, said: “The company is steadily moving forward on improving its financial results. Tangible results from the company’s transformation program are starting to be realized.”
On his part, Hassan Kabbani, CEO of Zain KSA, said: “We are starting to see the positive signs of the transformation plan, which includes the network development and expansion agreements signed with our strategic partners during quarter two of this year.”
Kabbani added that the company reported a substantial increase in mobile data service due to the ever-improving quality of our state-of-the-art 4G network to meet the growing demand especially from broadband services.
“Enhancing service quality by investing in the development of Zain network performance and providing qualitative customer experience are an essential part of our transformation plan, with the full support of the board of directors, Zain Group and the founding shareholders, as well as the combined efforts of all of the Zain team.”