Global Arab Network | Zain Saudi posts $ 400 million revenues with 107% increase

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Zain Saudi posts $ 400 million revenues with 107% increase

Global Arab Network - - Hannan Taha

Sunday, 18 July 2010 20:18

Zain Saudi posts $ 400 million revenues with 107% increase

Zain Saudi has announced that its revenues for the second quarter of 2010 have edged up by 107 percent to 1.5 billion Saudi riyals (USD 400 million).

The company's gross profit has also grown up by over 357 percent to more than 608 million riyals (USD 162 million) in comparison to 133 million riyals in the second quarter of last year, the group said in a release.

Operational losses decreased by 55 percent to 314 million riyals compared to 706 million riyals for the same period last year, it added.

The company said it has succeeded in strengthening its market share by taking its total subscriber base to over 7 million.

The market share gain reflects the quality and attractiveness of the Zain Saudi customer proposition as well as the success of its investment in the important and growing areas of data, video and broadband services.

Zain Saudi Chairman Prince Dr. Husam bin Saud bin Abdulaziz confirmed that the financial results for the second quarter demonstrated Zain's ability to position itself in the Saudi market which is characterized by high levels of competition.

He also mentioned that positive results reflect the creativity of Zain in its operational and marketing activities which enabled the company to reach this milestone.

He added that Zain is delivering against its plans to grow market share, noting that adding more than seven million subscribers in less than 22 months clearly reflects the company's success.

Chief Executive and Managing Director Dr. Saad Al-Barak said that the financial results for the second quarter reflect the developments and growth of the company.

"The period was full of achievements for Zain as it increased its market share, reduced the cost of local calls and significantly increased activities within its local network leading to a reduction in the net loss by more than 26 percent, at 632 million riyals compared to 857 million last year, in addition to significant growth in gross profit of 42 percent compared to the first quarter of 2010," he said.

Al-Barak also said that Zain Saudi decreased its operational costs and increased its revenues significantly by expanding its infrastructure and increasing its efficiency as well as offering unique and creative Broadband services and creating attractive service packages.

He said that Zain will be looking to expand its network to cover 93 percent of the populated areas of the country by the end of this year which is part of of its expansion plans.

He concluded by saying Zain had expanded its international offering during this period by signing more than 735 agreements with various mobile service providers around the world, including voice, video and data roaming alongside broadband services.

Global Arab Network

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