While continuing to yield profits for the seventh consecutive quarter, Zain KSA: SAR 105 million in net profits for Q1 of 2020

Revenue of SAR 2,039 million generated for the first quarter of 2020

  
  • Outstanding financial and operational performance continues
  • Multiple initiatives launched to support individuals and businesses during the Coronavirus crisis

Zain KSA has announced accomplishing fiscal profits for the first quarter of 2020 in continuation of its outstanding financial and operational performance during the last 3 years. This growth is owed to an increasing subscriber base and high competitiveness in the Saudi market resulting from investments made in the company’s infrastructure and services provided.

Zain KSA generated revenues amounting to SAR 2,039 million during the first quarter of 2020, while maintaining a net profit of SAR 105 million, same as the previous quarter's net profit. It also maintained an EBITDA growth rate of SAR 939 million during the current quarter, which represents 46% of the revenue.

Zain KSA stated that the company's net profit for this quarter was reflected in a decrease in accumulated losses that reached SAR 1,503 million, representing 25.7% of the company's capital of SAR 5,837 million. These recent figures are considered an improvement in the accumulated losses compared to SAR 1,608 million for the previous quarter, which represents 27.5% of the company's capital.

Commending those remarkable fiscal results, HH Prince Nayef Bin Sultan Al Kabeer, Zain KSA’s Chairman, said “these positive continues financial results come as a result of the company's operational strategy seeking to continually enhance investment, provide the best technologies and devices, and deliver added value to customers and key stakeholders to achieve fruitful and supportive growth for a digitally connected future for both individuals and businesses.”

HH Prince Nayef also praised the Saudi government’s efforts and reiterated Zain KSA’s commitment to pursue development and investment in technologies to support all the Kingdom’s economic sectors through business solutions, IoT and innovative services, which enhances non-oil GDP growth, generates thousands of job opportunities for citizens, and drives the Kingdom’s digital transformation in-line with the goals of Saudi Vision 2030.

Moreover, Zain KSA’s CEO Eng. Sultan bin Abdulaziz Al-Deghaither ascribed the positive fiscal results for the first quarter of 2020 to a series of noteworthy achievements recently accomplished by the company, as it has launched “Zain Cloud” for the business sector in order to enhance the economic and commercial activities and serve SMEs and entrepreneurs in Saudi Arabia, especially through e-commerce activities and IoT systems. Al-Deghaither also stated that Zain KSA has recently launched the Electronic Sim (eSIM) with its highly efficient technical and quality features for the first time in the Kingdom, in order to add value to its customers in-line with global technological developments. He noted that Zain KSA’s eSIM is the most technologically advanced and user-friendly eSIM, which is a built-in chip included within the motherboard of phones or smart devices seamlessly without human intervention.

Al-Deghaither added that Zain KSA has invested more than SAR 1 billion during the first quarter of 2020, and will continue investing to keep pace with the growth of the Saudi ICT sector, as it was the leading provider of 5G networks in the Kingdom, and has strengthened its efforts in providing technical capabilities and support required by both individual and business customers, especially during the current period which witnessed unprecedented pressure on the network due to a high demand to meet the requirements of remote working and distance learning.

Additionally, Al-Deghaither highlighted initiatives implemented by Zain KSA based on the principle of (We are all responsible), in line with its culture of social responsibility and keenness to support the Kingdom's efforts in combating the outbreak of the Coronavirus. He noted that the company donated 30,000 free internet data subscriptions to both male and female students in the Kingdom to support the "We are all givers”  initiative launched earlier by the Ministry of Communications and Information Technology in partnership with a number of government sector institutions, private and non-profit companies. The initiative aims to provide a comprehensive educational plan, overcome obstacles to distance learning, and bridge the gap experienced by students of low-income families in the Kingdom.

Zain KSA has also provided several facilitations for both individuals and businesses during the Coronavirus crisis, as it has allowed company employees to make unlimited calls among each other, to ease their work from home and support remote work initiatives. It has also extended the payment period for SME customers, and allowed its users free browsing on educational platforms to facilitate distance learning. Additionally, and within the framework of official initiatives promoting humanitarian welfare and safety in the Kingdom, Zain KSA has provided its services free of charge to subscribers confirmed to be infected with COVID-19 and kept under quarantine in homes and hospitals.

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