RIYADH, Saudi Arabia, July 15, 2015 /PRNewswire/ --
Zain KSA today announces that, for the first time in its history, it has achieved operational break-even during a quarter. Financial results for the second quarter of 2015 (Q2 2015) record positive operating profit (EBIT), compared with an operating loss of SAR 136 million during the corresponding quarter of 2014. Whilst operating losses decreased during the first half by 78% to SAR 58 million compared to SAR 263 million during the first half of 2014.
The company also reported a 64% growth in EBITDA during Q2 2015, at SAR 435 million up from SAR 264 million in Q2 2014, along with a 39% increase for the six months period at SAR 782 million up from SAR 564 million for the same period last year. EBITDA margin rose to 26% in Q2 2015, up from 17% during the corresponding quarter last year, and to 23% in H1 2015 up from 18% for the first half of 2014.
Gross profit rose 19% to SAR 949 million for the second quarter of 2015, up from SAR 797 million in Q2 2014 with a gross margin of 52%, and by 14% during the six months period to reach SAR 1,824 million up from SAR 1,596 million during the same period of 2014.
Net losses for the quarter were reduced by 39% to SAR 201 million, down from SAR 329 million during the same quarter of 2014. For the half year period net losses were reduced by 29% to SAR458 million, compared to SAR 647 million during H1 2014.
Commenting on the results Eng. Farhan bin Naif Alfaisal Aljarbaa, Chairman of the Board of Directors of Zain KSA, said "I am delighted to see the continued excellent performance of the Company as witnessed in these financial results. This is a historic quarter for the Company, being the first quarter where we are able to report a positive EBIT. I would like to congratulate the management team on this outstanding performance."
Mr. Hassan Kabbani, Chief Executive Officer of Zain KSA, commented "Achieving EBIT breakeven is a very important milestone in the turnaround of Zain KSA. The operational improvements we have made as part of our strategy are now delivering consistent results."
"During the quarter we introduced "Khatheer", our new flat rate of 19 Halalas to call any network without conditions. This new tariff was enabled by a 40% reduction in the Mobile Termination Rate (MTR) from 25H to 15H. I am proud to report that we were the first service provider in the Kingdom to pass on fully the reduction to consumers. On this basis, I believe I can claim that Zain KSA really is the consumer's champion."
"Customers are finding that Zain's data and voice services are better value for money, with a customer experience exceeding their expectations. In general, our customers report that the overall customer experience they enjoy with Zain KSA is better. We believe that our sustained financial improvements demonstrate that our strategy is working."
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 performance and customer experience each and every day. Of course, none of this would be possible without the trust of our 11 million customers. "
SOURCE Zain KSA