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 SR1,765 million compared with SR1,657 million in Q1, 2015, also representing a 6% increase in revenues compared with SR1,672 million for the fourth quarter of 2015. The company recorded a significant 28% increase in EBITDA to reach SR445 million in Q1, 2016, up from SR348 million during the same quarter of 2015, and a 10% increase from SR405 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 SR1,086 million for the first quarter of 2016, reflecting a gross margin of 62%, up from SR874 million and 53% gross margin in Q1, 2015. Gross profit also increased by 2%, up from SR1,065 million in Q4, 2015. Zain KSA recorded an impressive 46% reduction in operating losses (EBIT), to reach SR32 million for Q1, 2016, down from SR59 million in Q1, 2015, whilst narrowing operating losses by 61% compared to SR82 million in Q4, 2015. Net losses for Q1, 2016 were narrowed by 3% to SR250 million, down from SR257 million during the same quarter last year, while also dropping by 14% from SR291 million in Q4, 2015. 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," he said. Prince Naif added "Zain Saudi Arabia continues to play its part in developing the private sector economy within the Kingdom. As the country evolves economically, we are certain that we have an important role to play in the transformation of the Kingdom towards a digitally enabled and diversified economy." 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." "Saudi Arabia has by far the largest and most competitive telecom market in the region. As we expect the demand for data services to keep rising at the same levels; we continue to provide our customers with great value for money products. The company's sustained improvements demonstrate that we are attracting more customers and improving the monetization and margins of the services we are selling. The company's strategy to offer the best mobile video streaming services in Saudi Arabia appears to be resonating well with consumers," Kabbani added.
