Revenues for the quarter reach SAR 1.8 billion
Gross profit reaches SAR 870 million, up 22%
Net losses reduced by more than 11%
Riyadh: Zain Saudi Arabia (Zain KSA) financial results for the third quarter of 2011 show continued healthy growth in operational revenues and gross profit combined with further reduction of both operating and net losses, an impressive trend that has continued since the commencement of commercial operations in the Kingdom in August 2008.
For the third quarter of 2011 revenues grew by 8% to more than SAR 1794 million compared to SAR 1662 million for the same period in 2010. Furthermore the company achieved impressive growth in gross profit, which jumped more than 22% to exceed SAR 870 million, compared to SAR 712 million for the same quarter the previous year. Accordingly, operating loss (EBIT) declined by more than 6% to reach SAR 222 million, compared with SAR 235 million for the corresponding quarter in 2010.
The period also witnessed a reduction in net losses by more than 11%, whereby the company recorded a net loss of SAR 484 million, compared with SAR 544 million for the same period in 2010.
His Royal Highness Prince Dr. Hussam bin Saud bin Abdul Aziz, Chairman of the Board of Directors of Zain KSA said that, "the financial results for the period reflect the company's ability to continue to grow and achieve record financial levels in accordance with the ambitious targets and strategic plans set when the company commenced commercial operations, despite the very competitive and saturated market conditions."
The Chairman noted that the quarter has defined by many achievements, notably the successful launch of 4G LTE hi-speed internet technology in the Kingdom. Zain KSA is the first operator in the Kingdom to offer its customers a service that will eventually result in the growth of several key financial indicators.
The company is also dedicated to expanding coverage of its network and raise efficiency through excellence and innovation in its marketing strategy. This has enabled it to gain the trust of a wide range of customers, and maintain high levels of satisfaction.
His Highness also added that the company is fully preparing itself and upgrading its network to proficiently serve the influx of pilgrims expected for the coming Hajj, a period that will definitely be a stimulus for the company on several levels.
Regarding the company's expectations for the foreseeable future, His Highness explained that Zain KSA is winning the race to reach all its goals, and is expected to surpass all previous landmarks.
-Ends-
© Press Release 2011
