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Zain KSA posts SR3bn gross profits in 2013

Zain KSA made solid progress during the year 2013 with a 6 percent revenue growth reaching SR6.52 billion, up from SR6.17 billion in 2012.
Subscriber numbers have also increased by 10 percent reaching 8.7 million, up from 7.9 million the previous year.
Main drivers of this increase in revenues were increase in the Internet segment revenues, alongside revenues increase in the postpaid segment. The Internet service traffic on the MBB network has also increased by 108 percent during full year 2013 as compared to 2012.
Gross profit recorded double digit growth of 10 percent, increasing from SR2.9 billion in 2012 to SR3.1 billion at year-end 2013, leading to a gross profit margin of 48 percent for the year, up from 46 percent at year-end 2012.
The company has also succeeded in reducing general and administrative expenses by 27 percent year on year.
Net loss narrowed further from SR1.7 billion for 2012 to SR1.6 billion at year end 2013 due to topline growth, financial restructuring, operational efficiency improvements and costs controls during the year.
As for EBITDA, an improvement by 2 percent has been recorded during 2013 reaching SR891 million, up from SR878 million in 2012. The company maintained stability of its EBITDA margin at 14 percent.
Financial charges have significantly decreased by 12 percent (equivalent to SR100 million) during 2013 reaching SR723 million down from SR823 million in 2012, such decrease is attributable basically to capitalizing majority of advances from shareholders as part of capital restructuring back in 2012, which accordingly minimized the commission related to it.
On another note, loss from operations increased by around 2 percent in 2013 reaching to SR949 million up from SR932 million in 2012.
Commenting on the results, Fahd bin Ibrahim Al-Deghaither, chairman of the board of directors of Zain KSA, said: “2013 has been a stepping stone in the evolution of Zain KSA. We have made good progress in improving our capital structure by successfully refinancing the murabaha facility arrangement to a lower interest and long-term tenure. In addition, we entered into an agreement with the Ministry of Finance to defer royalty fees payable to the government for seven years.
“During 2013, we increased our customer base by 10 percent to a total of 8.7 million customers, partly due to the solid progress made in the mobile broadband (MBB) segment.
Hassan Kabbani, CEO, Zain KSA said: “Zain KSA goals are to boost market share and continue capturing MBB market opportunities in which MBB data traffic significantly increased by 108 percent during the year 2013 as compared to 2012.”