Zain KSA increases its revenues

Zain KSA’s revenues for the year ending December 31, 2009 reached SR 3,004 million, compared to SR505 million for the same period in 2008, an increase of 495%. Meanwhile, gross profits jumped by 5000%, reaching SR877, compared to SR16 million realized in the same period in 2008. 

Figures for 2008 reflected only four months, during which Zain launched commercial operations in the Kingdom, while the recorded expenses reflect a period of 18 months including the pre-launch period.

HRH Prince Dr. Hussam bin Abdulaziz, Chairman of Zain KSA’s Board of Directors said that the financial results, especially exceeding SR 3 billion in revenues, reflected the company’s efforts to consolidate its presence in the Saudi market, adding that Zain’s current market share has exceeded all expectations despite tough competition in the local market. 

In outlining the company’s standout achievements the Zain KSA BOD Chairman cited Zain’s 18% market share with over 6 million customers after only 16 months. He added that the Company had also won the trust of the banking sector with the conclusion of the award-winning US$2.6 billion (SR9.75 billion) Murabaha refinancing agreement with a consortium of local and international banks.

Dr. Saad Al-Barrak, Zain KSA CEO said that the 2009 financial results could be added to the achievements of the company to date, noting that  they showed a 45% rise in the volume of operational losses to reach SR2,467 million, compared to SR1,700 million for the period from 12 March to 31 December 2008. He also pointed out that net losses for the year amounted SR3,009 million in comparison with SR2,278 million for the period from 12 March to 31 December 2008.

Al-Barrak attributed both sets of losses for 2009 to the intensified costs of marketing and financing of investments in the expansion of infrastructure that has enabled the company to cover vast areas of the Kingdom within a short time period.

He added that the company was able to overcome the most important stage of its establishment efficiently and with professionalism, noting that the first year is always challenging with its construction projects and extensive marketing programs. In spite of this, late in 2009, Zain KSA had achieved its monthly break-even point.

In terms of expectations and forecasts, Al-Barrak declared that Zain KSA wants to increase revenues by a further 80% and expanding its customer base to over 7.5 million by the end of 2010.  

Ismael Fikree, Zain KSA’s Chief Operating Officer reported that the company, through intensive investment in its own network, managed, by the end of 2009, to cover more than 83% of the Kingdom’s populated areas and had begun work on the world’s largest LTE, or 4G network. The company was able to expand its services through roaming agreements with more than 300 global operators.

Fikree added that Zain’s growing market share is the also the result of Zain’s quality services, especially the BlackBerry offering which helped Zain position itself among the region’s leading network providers as well as contributing to  fast market penetration.