HH Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer, Chairman of the Board of Directors of Zain Saudi Arabia HH Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer, Chairman of the Board of Directors of Zain Saudi Arabia

Zain Saudi Arabia has reported its second consecutive quarterly net profit and its first ever, half year net profit for the period ending 30 June 2017.

Revenues grew 8% YoY in Q2 2017 reaching SAR 1,865 million ($497.31 million). Q2 2017 revenues slightly decreased (3%) compared to Q1, 2017 attributable to further subscriber rationalisation due to biometric initiatives, seasonality and lower handset sales.

Zain Saudi Arabia also reported a 13% increase in gross profit to reach SAR 1,259 million ($335.72 million) for Q2 2017, reflecting a gross margin of 67%. Operational income for Q2 was SAR 235 million ($62.66 million) compared to an operational loss of SAR 108 million ($28.8 million) in Q2 2016.

The company announced its second sequential quarter of net profit ever in Q2, 2017, amounting to SAR 8 million ($2.13 million) compared to net losses of SAR 328 million ($87.46 million) in Q2, 2016.

The company recorded a significant 70% increase in EBITDA to reach SAR 632 million ($168.52 million) during Q2 2017 up from SAR 372 million ($99.19 million) during Q2 2016 with an EBITDA margin reaching 34% compared to 22% in Q2 2016.

HH Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer, Chairman of the Board of Directors of Zain Saudi Arabia said: “The Saudi market faces ongoing challenges in terms of decreasing total number of subscribers and increased competition. I am pleased to see the company reporting solid financial results for two consecutive quarters and the best, half yearly net profit, since the company’s inception”.