Zain Saudi Arabia has reported its second consecutive quarterly net profit and its first ever, half year net profit for the period ending 30 June 2017.
Revenues grew 8% YoY in Q2 2017 reaching SAR 1,865 million ($497.31 million). Q2 2017 revenues slightly decreased (3%) compared to Q1, 2017 attributable to further subscriber rationalisation due to biometric initiatives, seasonality and lower handset sales.
Zain Saudi Arabia also reported a 13% increase in gross profit to reach SAR 1,259 million ($335.72 million) for Q2 2017, reflecting a gross margin of 67%. Operational income for Q2 was SAR 235 million ($62.66 million) compared to an operational loss of SAR 108 million ($28.8 million) in Q2 2016.
The company announced its second sequential quarter of net profit ever in Q2, 2017, amounting to SAR 8 million ($2.13 million) compared to net losses of SAR 328 million ($87.46 million) in Q2, 2016.
The company recorded a significant 70% increase in EBITDA to reach SAR 632 million ($168.52 million) during Q2 2017 up from SAR 372 million ($99.19 million) during Q2 2016 with an EBITDA margin reaching 34% compared to 22% in Q2 2016.
HH Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer, Chairman of the Board of Directors of Zain Saudi Arabia said: “The Saudi market faces ongoing challenges in terms of decreasing total number of subscribers and increased competition. I am pleased to see the company reporting solid financial results for two consecutive quarters and the best, half yearly net profit, since the company’s inception”.
HH Prince Naif added: “The strong performance we witnessed in this quarter and the first six months of 2017 are attributed to the ongoing focus to improve the company’s data services and data monetisation, marketing and customer service initiatives, increase in operating efficiencies and the positive effect of the license extension by an additional 15 years.”
Peter Kaliaropoulos, CEO of Zain Saudi Arabia said: “Zain’s continued strong performance reflects our transformational efforts to evolve as a market leading data services operator. We continue to implement our turnaround program despite the severe rationalisation in the number of subscribers in the market which resulted in 6.5 million fewer subscribers in the last 12 months. Zain has retained its market share and continue to focus on increasing the “share of wallet” from our customer base, reducing churn and implementing a disciplined, operational efficiencies program to reduce expenditures.”
Kaliaropoulos further added: “Customer satisfaction is an important aspect of our strategy with Zain consistently recording both, the lowest overall amount of monthly complaints from the leading leading operators escalated to CITC and the highest resolution rate based on CITC reported figures. Delivering faster and more reliable data experiences to our customers is at the core of our operations. We will achieve such goal by continuing to carefully invest in the expansion of our advanced 4.5G LTE network and utilising the additional [20MHz (10+10)] spectrum we acquired in the 1800 MHz frequency band”.