Zain Saudi Arabia announces increased revenues

19 Jul 2010

Zain Saudi Arabia has announced significantly increased revenues for the three months ending 30 June 2010, reaching break-even for profit before interest on its Murabaha loan, taxes and depreciation (EBITDA) – just 22 months after commencing its operations. The results exceeded analyst expectations, with revenue up 107% to more than SAR1.45 billion (USD385.56 million), compared to SAR702 million in Q2 2009. Zain also saw a significant growth in gross profit, with an increase of more than 357% to SAR608 million compared to SAR133 million for the same period in 2009. Operational losses decreased by 55% to SAR314 million compared to a loss of SAR706 million in the same period last year. CEO and managing director Dr. Saad Al Barrak explained that Zain had been able to reduce the cost of local calls and significantly increase activities within its local network, leading to a reduction in net loss of more than 26%, to SAR632 million. He noted that these factors combined to contribute to achieving break-even point at the EBITDA level during the second quarter of 2010, ahead of initial expectations. Dr Barrak also announced that Zain intends to expand its network to cover 93% of Saudi Arabia’s populated areas by the end of 2010, completing ‘Phase B’ of its expansion plans.

Saudi Arabia, Zain Saudi Arabia