Zain KSA recorded SAR 2.4 billion in revenue for Q1 2023, a growth of 11% compared to Q1 2022. These results reflect the success of Zain KSA’s strategy, which focuses on enhancing the customer experience, expanding its footprint in next-gen technologies, investing in adjacent markets and developing its infrastructure and 5G services while continuing to enhance governance to ensure sustainable growth and profitability, which has led the company to become the preferred partner of choice for businesses and individuals.
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Furthermore, Zain KSA achieved a net profit of SAR 563 million in Q1 2023, a growth of 595% compared to Q1 2022 and the highest quarterly profit in the Company's history. This record quarterly profit is a result of the Company's financial performance and the gains achieved through the sale and leaseback of Zain KSA’s 3600 towers, which brought in SAR 532 million in revenue in Q1 2023. This follows the successful completion of Zain KSA’s tower infrastructure sale deal and is part of the SAR 1.1 billion financial impact estimated upon the completion of the ownership transfer phase over a period of 18 months.
Commenting on the results, Zain KSA CEO, Eng. Sultan bin Abdulaziz Al-Deghaither, stated, "At Zain KSA, we continue to empower individuals, businesses and government entities with advanced digital capabilities and solutions to enable nationwide digital transformation in the Kingdom, in line with Saudi Vision 2030 objectives. The first quarter results for 2023 show a growing demand for our digital services and solutions, which has led to the expansion of our business portfolio in both the individual and business sectors. This has had a direct impact on our financial results. In addition, Zain KSA’s tower infrastructure sale transaction resulted in generating substantial net profit.”
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Eng. Al-Deghaither added, "These results reflect the success of our commitment to our strategy of improving next-gen communication networks and scaling up 5G network infrastructure in the Kingdom. The demand-led growth in business sector services and solutions has immensely contributed to Zain KSA’s first quarter revenues, alongside growing demand on our offerings in adjacent markets, especially our Fintech services provided through Tamam, the first digital microfinance provider in the Kingdom."
Commenting on Zain KSA’s role in developing national talent, Eng. Al-Deghaither stated, “The Kingdom’s sustainable digital transformation is only possible through skilled Saudi youth. As part of our commitment to this, we have signed a Memorandum of Understanding (MoU) with the Ministry of Human Resources and Social Development to train 50,000 Saudi men and women over the next three years. This cooperation is an integral part of the ‘Wad’ national campaign to encourage training within the private sector and aligns with our national commitment and strategic direction to become a key enabler of a knowledge-based society and a smart digital economy that supports Saudi Vision 2030 objectives to develop human capabilities and enhance the quality of life."
It is worth noting that Zain KSA signed an agreement with the Shareek Center to launch hyper-scale data centers during an event to announce the first bundle of projects by large companies under the newly created Private Sector Partnership Reinforcement program. Additionally, Zain KSA has recently announced its Board of Directors’ recommendation to distribute cash dividends for the year 2022 at a rate of 5% of the share’s nominal value. This would be the first cash dividend distribution in the Company’s history.