Zain KSA have posted its financial results for the fourth quarter of 2014, ending 31 December, 2014. Net losses were narrowed by 34% year-on-year during the quarter to SAR 306 million ($81.6 million), down from SAR 462 million ($123.2 million) a year earlier, and reflect a 23% drop in net loss for the year.
The company also recorded an increase in gross margin to reach 52% in 2014, up from 48% in 2013.
Mobile broadband service customers grew by 147% in the twelve-month period in 2014. Mobile Internet data traffic continues to increase with a growth rate of 621% y-o-y for the full-year 2014, and 45% y-o-y increase in Q4 2014, according to the company.
Commenting on the results, Eng. Farhan bin Naif Alfaisal Aljarbaa, chairman of the board of directors of Zain KSA said: “All indicators show that the company is moving steadily towards improving its financial results, backed by the transformation plan that was implemented by the management early last year.”
“Many decisions were taken with the aim of improving the company’s position, including the Board Of Directors’ recommendation to convene an Extraordinary General Meeting (EGM) to seek the approval for a reduction in the company's capital from SAR 10,801,000,000 ($2.880 billion) to SAR 5,837,291,750 ($1.557 billion), resulting in a reduction by 45.96%. This came after a study prepared by the company’s executive management and external consultants; to write-off all of the company’s accumulated losses to 30 September 2014,” he said.
Hassan Kabbani, chief executive officer of Zain KSA, commented: “We reported tangible growth on all fronts during 2014. We continue to conduct business in a transparent manner, even under difficult circumstances. Many new customers are using Zain to provide them with Internet services; thanks to the quality and reliability of our state-of-the-art 4G LTE network.”
“We consider ourselves the operator that puts the customer first, the operator who really cares for their customers. We are still committed to enhancing our services and our network’s coverage and capacity. Customer feedback regarding our new look shops has been particularly positive.”