Zain Saudi reports first full-year profit since launch

24 Jan 2018

Zain Saudi Arabia, a subsidiary of Kuwait-based telco Zain Group, has reported a net profit of SAR12 million (USD3 million) in the twelve months to end-December 2017, up from a net loss of SAR979 million in 2016, marking the first time in the company’s history that a full-year net profit has been reported. The operator attributed the positive result to an increase in revenues by SAR379 million, a decrease in cost of sales (by SAR133 million), a decrease in amortisation as a result of a 15-year operating licence extension, and lower distribution and marketing expenses (by SAR181 million). Zain Saudi generated revenues of SAR7.3 billion during the period under review, a figure which represented a 5% annual improvement on the SAR6.9 billion reported for 2016. EBITDA for the twelve-month period also increased, by 40% year-on-year, to SAR2.5 billion.

Saudi Arabia, Zain Group, Zain Saudi Arabia