Zain KSA's revenues and gross profit improve in Q2

Zain Saudi Arabia (Zain KSA) continued improving its revenues and gross profit for the second quarter of 2016 ending June 30, 2016, compared to the same period last year.

Reporting revenues of SR1,727 million, reflecting a 5 percent growth compared with SR1,649 million in Q2, 2015. Revenues for H1, 2016 were up 6 percent at SR3,492 million compared with SR3,306 million for the first half of last year.

Zain Saudi Arabia also reported record gross profits, reaching SR1,113 million for the second quarter of 2016 with a gross margin of 64 percent. Rising 17 percent, up from SR949 million in Q2, 2015 with a gross margin of 58 percent, gross profit also grew by 21 percent during the six-month period to reach SR2,198 million up from SR1,824 million during the same period of last year.

The company also reported a SR 372 million EBITDA during Q2, 2016, and SR817 million for the six-month period, up 4 percent from SR782 million for the first six months of 2015. EBITDA margin reached 22 percent in Q2, 2016 and 23 percent in the first half of 2016.

The company recorded the highest revenues, gross profit and gross margin since inception during the first half of 2016.

Hassan Kabbani, CEO of Zain Saudi Arabia, said: “The company continues to show improvements, although the overall market conditions are challenging for all participants. During the second quarter of 2016, we successfully completed the refinancing of a SR2,250 million loan with competitive terms, which demonstrates the confidence that our lenders have in the company.”

Kabbani added: “Reporting record revenues and gross profits for the six-month period indicate that we are making the most of the growth opportunities that exist in the market, supported by our transformation strategy.”