- Revenues rise 9% for year with net losses for the year narrowing by 23%.
- Gross profit margin reaches 59%, reflecting a record gross profit of SAR 3,951M.
- Efficiency drive and improved vendor terms sees EBITDA rising by 48% with operating losses falling by 73% YoY
RIYADH, Saudi Arabia, Jan. 21, 2016 /CNW/ - Zain Saudi Arabia (Zain KSA) posted record financial results for the year ended 31st December 2015, recording a significant 48% increase in EBITDA to reach SAR 1,629 million, for the 12 months period, up from SAR 1,100 million during the same period of 2014. For the fourth quarter of 2015, the company witnessed a 47% increase in EBITDA reaching SAR 405 million up from SAR 275 million in Q4 2014.
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Revenues grew by 9% year on year, to reach SAR 6,741 million for the year compared with SAR 6,170 million in 2014, while revenues increased 7% quarter on quarter, to reach SAR 1,672 million for Q4 2015 compared with SAR 1,556 million during the same quarter of 2014.
The company also recorded a 23% increase in gross profit to reach a record SAR 3,951 million for 2015 with a gross margin of 59%, up from SAR 3,223 million and 52% gross margin in 2014. Gross profit also increased by 30% during Q4 2015 to reach SAR 1,065 million with a gross margin of 64%, up from SAR 816 million in Q4 2014 and a 52% gross margin.
The company recorded a significant 73% reduction in operation losses, to reach SAR 141 million down from SAR 534 million in 2014. Operating losses reflected a 40% reduction in Q4 2015 compared with Q4 2014, reducing to SAR 82 million from SAR 137 million.
Net losses for the year narrowed by 23% to SAR 971 million, down from SAR 1,269 million during 2014, with Q4 net losses dropping by 5% drop to SAR 291 million, down from SAR 306 million during Q4 2014.
Commenting on these results, HH Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer, Chairman of the Board of Directors of Zain KSA said, "The Company is clearly continuing to improve its operating performance in what remains a very competitive market. I am proud to see that the Company continues to play its part in developing the private sector economy within the Kingdom. It is clear that we have an important role to play in the transformation of the Kingdom towards a digitally enabled and diversified economy."
His Highness added "I would like to extend my gratitude to the executive management and the whole team, who have achieved these positive operating results through their effective execution of the Company's transformation plan. However, the Company continues to report net losses mainly due to the high amortization charges associated with its license and the cost of financing its debt."
Mr. Hassan Kabbani, Chief Executive Officer of Zain KSA said, "We are witnessing significant changes in the usage behavior of our customers as they become much more active members of the digital society in Saudi Arabia. Customers are consuming an ever increasing amount of our data services. The Company's sustained improvements in its financial results demonstrate that we are both selling more digital services as well as improving the monetization of these services. The Company's strategy of striving to offer the best mobile video streaming services in Saudi Arabia appears to be resonating well with consumers."
"The record results that Zain KSA achieved in 2015 are due to the extra-ordinary efforts of our team to align around the Company's "Winning through Caring" transformation plan. During 2015, we significantly enhanced the customer experience that we deliver, particularly in relation to the quality, speed and coverage of our advanced 4G LTE data network, mainly achieved through the completion of phase one of Project Reload, a SAR 4.5 billion network upgrade and expansion plan. The ever growing number of digitally connected consumers are finding our innovative products attractive and great value for money. We also opened, or refreshed, 91 Zain branded points of sale in 2015, bringing our services closer to an ever increasing number of consumers. As part of our operational efficiency initiatives, through negotiations, the Company has reached improved terms with its vendors, these efforts have contributed to the Company achieving these improved financial results."
Mr. Kabbani concluded, "This is a great achievement, which all members of our winning team can rightly be proud of. We achieved these positive results thanks to the full support of Zain KSA shareholders, Zain Group, the Board of Directors, as well as the combined efforts of all of the Zain team."
SOURCE Zain Saudi Arabia