- Company continues to generate profits despite challenges imposed by COVID-19
Riyadh : Zain Saudi Arabia (Zain KSA) has achieved notable financial results during the first six months of the year ending June 30, 2020, recording a net profit of SAR 164 million on revenues of SAR 3,928 million. This performance reflects the company’s solid fiscal trend despite COVID-19 related impacts. This impact has been partially absorbed by SAR 125 million decrease in operating expenses (Opex) in Q2 2020 because of the company’s efficiency drive and better cost management to limit the impact of the pandemic.
Additionally, Zain KSA reduced its accumulated losses to SAR 1,444 million by 30/6/2020, which forms 24.7% of capital valued at SAR 5,837 million. This forms a noticeable improvement compared to previous accumulated losses, and is owed to the net profits achieved during the current quarter. Zain KSA also voluntarily paid off some early installments from a financing agreement of SAR 1.1 billion, raising the total of its paid dues within the last 21 months to SAR 2.5 billion, which reflects the strong fiscal position and liquidity appreciated by the company.
Commenting on the results, Prince Nayef bin Sultan Al Kabeer, Chairman of Zain KSA’s Board of Directors stated, “We continue to reap the rewards of our operational strategy that has proved effective even during the current circumstances. Investment and development have always been strategies pursued by Zain KSA, and over the last few years this has enabled us to successfully overcome challenges by providing customers in the Kingdom of Saudi Arabia with the products and services they demand. We are proud of our position as a key player in the Kingdom’s digital transformation, and as an enabler for improving the quality of life, boosting non-oil income sources, and creating job opportunities in line with the targets of the Saudi Vision 2030.”
Zain KSA CEO, Eng. Sultan Abdulaziz Al Deghaither said, “The results for the first half of 2020 are a testament to the company’s operational and financial resilience that have enabled us to continue growing while increasing demand for our products and services. We have consequently been able to achieve net profits during a time of economic slowdown as a result of COVID-19.”
Eng. Al Deghaither continued, “We strive to offer the best customer service in the Kingdom and were recently identified as providing the fastest fixed internet in Saudi Arabia by Ookla Global, the operator of the renowned Speed Test website. This is another international accolade that points to the remarkable success Zain KSA has achieved through its investment in 5G and other future-forward technologies for the benefit of its customers in particular and the Saudi telecommunications sector in general.”
Notably, Zain KSA has recently announced the completion of its 5G network to cover all regions of the Kingdom, following adding of Al-Jouf and the northern borders to its covered areas which now include a total of 30 cities.
Zain KSA benefits from the cooperation, expertise, and resources of its parent company, Zain Group, which supports Zain KSA in being a leader in the sector and driving forward technology innovation in the Kingdom.
© Press Release 2020