RIYADH, Saudi Arabia, October 26, 2015 /PRNewswire/ --
Zain Saudi Arabia (Zain KSA) today announced significant improvements in its financial results for the third quarter ended 30 September 2015, reporting its highest third quarter revenues since launching mobile services in the Kingdom in August 2008.
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Revenues grew by 15% year on year, to reach SAR 1,785 million for Q3 2015 compared with SAR 1,553 million during the same quarter of 2014.
Operating profits (EBIT) are now near breakeven level, improving by 99% to reach SAR - 0.9 million, compared with operating profits of SAR -134 million during the same quarter of 2014, while the Company narrowed the operating losses in the nine months period by 85% to SAR 59 million, down from SAR 397 million.
The Company also announced a 69% growth in EBITDA during Q3 2015, reporting the highest since inception at SAR 441 million up from SAR 261 million in Q3 2014, EBITDA also increased by 2% compared with SAR 435 million in Q2 2015. EBITDA margin rose to 25% in Q3 2015, up from 17% during the corresponding quarter last year.
The Company reported the highest gross profit since inception at SAR 1,062 million for the third quarter of 2015, raising 31% up from SAR 811 million in Q3 2014 with a record gross margin of 60%, gross profit also increased by 20% during the nine months period to reach SAR 2,886 million up from SAR 2,406 million during the same period of 2014.
Net losses for the quarter were reduced by 29% to SAR 223 million, down from SAR 316 million during the same quarter of 2014. For the nine months period net losses were reduced by 29% to SAR 681 million, compared to SAR 963 million during the nine months period of 2014.
Over 2.8 million new customers joined Zain to enjoy the quality and speed of the ever expanding 4G LTE network and superior customer service.
The Company overall subscriber base increased significantly by 26% at the end of Q3 2015 reaching 11.8 million subscribers compared to 9.4 million subscribers at the end of Q3 2014. The Company experienced strong growth in its digitally connected customers base, which increased by 79% compared to same quarter of last year.
Commenting on the results Mr. Hassan Kabbani, Chief Executive Officer of Zain KSA said "These are the highest Q3 results that the Company has achieved since its inception. I am pleased to see the continued excellent performance of the Company. These results shows the positive outcome of the transformation plan implemented at the Company. The Company has delivered consistent results during the last three quarters, as an outcome of the team's commitment".
Mr. Kabbani added, "The Saudi telecom market continues to experience significant growth in demand for data services from customers. The proportion of our revenue which is attributed to data services continues to grow reflecting the high levels of digital engagement of Saudi consumers and of course international trends. Zain KSA success in the Hajj season contributed to the overall improvement in results. The Company continues to be the consumers' champion, during the quarter we enhanced our market leading Shabab package with the innovative new Shabab Nitro package. Shabab Nitro is specifically targeted at trendy young Saudi's for whom digital connectivity is an essential element of their lifestyle."
He continued, "Furthermore, during the quarter our strong positive cash flows enabled us to repay SAR 120 million of our debt."
Mr. Kabbani concluded, "I would like to thank the Zain KSA shareholders, Board of Directors, and Zain Group for their continued trust and support. A big thanks to the Zain KSA team for their efforts to improve our customer experience and strengthening the Company's performance each and every day. Of course, none of this would be possible without the trust of more than 11 million Zain customers. "
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