Zain KSA achieved highest quarterly revenues exceeding SAR 2.5 billion, a notable 10% increase compared to the SAR 2.2 billion generated in the third quarter of the previous year, as well as recording SAR 285 million in net profit, a significant growth of 234% compared to the corresponding period in 2022.
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The company's strong financial performance also reflected the gains achieved by the tower infrastructure sale and leaseback deal which generated gains totaling SAR 139 million during this quarter, as part of the total financial impact which the company expects to reach SAR 1.1 billion over the 18-month period of the tower ownership transfer.
Sustained business growth across all sectors has fueled Zain KSA's robust Q3 profit growth. This growth is particularly evident in the enterprise sector with strong demand for cutting-edge services and solutions such as cloud computing, the Internet of Things and artificial intelligence. Beyond the growth in 5G revenue, Zain KSA has also witnessed a steady uptick in its consumer services and a surge in demand for Yaqoot digital services and micro-finance solutions offered through Tamam, its fintech arm.
Commenting on the financial results, Zain KSA CEO Eng. Sultan Bin Abdulaziz Al-Deghaither stated: “In Q3 2023, our revenue and profit continued to soar, reaching an all-time high for Zain KSA. These accomplishments underscore the effectiveness of our operational and financial strategies, which are firmly grounded in innovation and strategic investments. Our unwavering focus remains on maximizing our impact across technology, economy and society, particularly by enhancing our robust 5G services ecosystem within the business sector. During Q3 2023, we achieved remarkable milestones that cemented our position as a champion of digital transformation Kingdom-wide. One notable achievement was the launch of the world's first zero-emission 5G network in partnership with Red Sea Global. Furthermore, our commitment to localizing the sector was strengthened through strategic collaborations, including a significant partnership with Pioneers Systems, a leading organization specializing in electronic circuit design and manufacturing. Together, we aim to localize cutting-edge products and expertise in the realm of the Internet of Things."
He added, "Cultivating operational and financial efficiency is essential, but equally important is our firm dedication to sustainable innovation and achieving positive impact for all stakeholders and our beloved Kingdom. We remain steadfast in our commitment to being genuine catalysts for Saudi Arabia's nationwide digital transformation, fully aligned with the goals of Saudi Vision 2030. Our aim is to empower an ambitious nation, cultivate a thriving economy and foster a vibrant society. We will continue to meet the ever-growing demand for our advanced services and solutions by seamlessly integrating innovation, sustainability and investment, aspiring to deliver exceptional digital experiences across the telecommunications, fintech, digital entertainment and cloud computing sectors."
Zain KSA has been recognized for its commitment to environmental sustainability, social responsibility, and corporate governance with an upgraded rating of "A" in the MSCI ESG Index. This achievement underscores the company's unwavering dedication to integrating these principles into its operational, financial and administrative processes. Establishing clear performance indicators to track and measure progress, Zain KSA has instilled a culture of sustainability and responsibility across all levels of the organization.