JEDDAH — Zain KSA has announced last Wednesday for the first time in its history, that 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 SR136 million during the corresponding quarter of 2014. While operating losses decreased during the first half by 78% to SR58 million compared to SR263 million during the first half of 2014. The company also reported a 64% growth in EBITDA during Q2 2015, at SR435 million up from SR264 million in Q2 2014, along with a 39% increase for the six months period at SR782 million up from SR564 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 SR949 million for the second quarter of 2015, up from SR797 million in Q2 2014 with a gross margin of 52%, and by 14% during the six months period to reach SR1,824 million up from SR1,596 million during the same period of 2014. Net losses for the quarter were reduced by 39% to SR201 million, down from SR329 million during the same quarter of 2014. For the half year period net losses were reduced by 29% to SR458 million, compared to SR647 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.” Hassan Kabbani, Chief Executive Officer of Zain KSA, said “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.” — SG
