Following the excellent performance during 2015, Zain Saudi Arabia (Zain KSA) announced significant improvements in its financial results for the first quarter of 2016 ending March 31, 2016.
Revenues grew by 7% in Q1, 2016 reaching USD 471 million compared with USD 442 million in Q1, 2015, also representing a 6% increase in revenues compared with USD 446 million for the fourth quarter of 2015.
The company recorded a significant 28% increase in EBITDA to reach USD 119 million in Q1, 2016, up from SUSD 93 million during the same quarter of 2015, and a 10% increase from USD 108 million in Q4, 2015. EBITDA margin rose to 25% compared to 21% in Q1 2015, and 24% in Q4 2015.
The company also recorded a 24% increase in gross profit to reach USD 290 million for the first quarter of 2016, reflecting a gross margin of 62%, up from USD 233 million and 53% gross margin in Q1, 2015. Gross profit also increased by 2%, up from USD 284 million in Q4, 2015.
Zain KSA recorded an impressive 46% reduction in operating losses (EBIT), to reach 8.5 million for Q1, 2016, down from USD 16 million in Q1, 2015, whilst narrowing operating losses by 61% compared to USD 22 million in Q4, 2015.
Net losses for Q1, 2016 were narrowed by 3% to USD 67 million, down from USD 68.5 million during the same quarter last year, while also dropping by 14% from USD 78 million in Q4, 2015.
Commenting on these results, HH Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer, chairman of the Board of Directors of Zain KSA said: "Although we operate in a very competitive market, I am pleased to see the company maintaining steady financial improvements. The Company continues to report net losses mainly due to the high amortization charges associated with its license and the cost of financing its debt," His Highness explained.
Mr. Hassan Kabbani, chief executive officer of Zain KSA said: "During Q1 2016 we were able to maintain our positive results, both financially and operationally, following a record-breaking year. This indicates the continued success of our transformation plan, driven by our 'Winning through Caring’ strategy."
Mr. Kabbani concluded: "This is a great achievement, which all members of our winning team can rightly be proud of. We achieved these positive results thanks to the full support of Zain KSA shareholders, Zain Group, the Board of Directors, as well as the combined efforts of all of the Zain team."