increase of 88%

Zain Saudi Arabia recorded revenues of SAR 1.094 billion for the period ending 31/03/2010, an 88% increase on the same period for 2009, which saw revenues of SAR 582 million.

In a statement to the press, the company added that in the same period it showed a gross profit SAR 384 million, an increase of 163% compared to SAR 146 million for the same period last year. Also over the same period, operational losses dropped by more than 34% from SAR 656 million to SAR 435 million. His Royal Highness Prince Dr. Husam bin Saud bin Abdul Aziz, Chairman of the Board of Directors of Zain Saudi Arabia stated that the financial results for the first quarter of 2010 demonstrates the company’s ability to carve out a niche for itself in the Saudi market, despite the intense competition and market saturation, reflecting the excellence and creativity in its marketing and technical operations. Prince Saud pointed out that the success of the company in doubling its customer base and increasing revenues in one year is a clear milestone in building a strategic position within the Saudi market. He also stressed that Zain Saudi Arabia is on track to reach its strategic objectives.

Dr. Saad Al Barrak, Managing Director and CEO of Zain Saudi Arabia said the results had set new performance standards and reflect the company’s rapid progress since the launch of operations. 

Dr Al Barrak elaborated by showing that in one year the company had expanded its customer base by more than 101%; reduced the cost of local roaming and significantly raise the volume of calls made within its network, a move that directly contributed to decreasing net losses from SAR 765 million in Q1 2009 to SAR 663 million, a year-on-year drop of 13%.

Dr Al Barrak also pointed out that Zain Saudi Arabia took the unique step by entering into a strategic agreement with Dawiyat Telecom, which is fully owned by the Saudi Electricity Company, to operate and use its fibre-optic link to Zain’s sites across the Kingdom. The move will reduce rental costs in the local districts by more than 20% and cut the expenditure that typically accompanies the foundation stage for any new operator in mobile telecommunication markets. 

Ismael Fikree, Zain Saudi Arabia Chief Operating Officer said that the company had, by expanding its infrastructure and achieving greater efficiency, as well as providing excellent broadband services and innovative marketing packages, managed to reduce its expenditures and increase revenues. He also said that the company will increase its coverage to more than 93% of the populated areas in the Kingdom by the end of 2010 with the completion of the Phase B of its expansion plans. 

 

Fikree added that the company was also able to achieve an international reputation for transferring the latest technologies to the region and keeping up with the revolution in the world of mobile communications by initiating one of the largest 4G networks of the fourth generation in the world which can supports the modern Long Term Evolution (LTE) technology. Zain Saudi Arabia has also provided its customers connectivity in more than 151 countries around the world through the conclusion of the roaming agreements with more than 329 operators, all of which he said had contributed directly to higher levels of customer confidence and satisfaction.