Zain Saudi Arabia (Zain KSA) posted record financial results for the year ended 31st December 2015, recording a significant 48 percent increase in EBITDA to reach SAR 1,629 million, for the 12 months period, up from SAR 1,100 million during the same period of 2014. For the fourth quarter of 2015, the company witnessed a 47 percent increase in EBITDA reaching SAR 405 million up from SAR 275 million in Q4 2014.
Revenues grew by 9 percent year on year, to reach SAR 6,741 million for the year compared with SAR 6,170 million in 2014, while revenues increased 7 percent quarter on quarter, to reach SAR 1,672 million for Q4 2015, compared with SAR 1,556 million during the same quarter of 2014.
The company also recorded a 23 percent increase in gross profit to reach a record SAR 3,951 million for 2015 with a gross margin of 59 percent, up from SAR 3,223 million and 52 percent gross margin in 2014. Gross profit also increased by 30 percent during Q4 2015 to reach SAR 1,065 million with a gross margin of 64 percent, up from SAR 816 million in Q4 2014 and a 52 percent gross margin.
The company recorded a significant 73 percent reduction in operation losses, to reach SAR 141 million down from SAR 534 million in 2014. Operating losses reflected a 40 percent reduction in Q4 2015 compared with Q4 2014, reducing to SAR 82 million from SAR 137 million.
Net losses for the year narrowed by 23 percent to SAR 971 million, down from SAR 1,269 million during 2014, with Q4 net losses dropping by 5 percent drop to SAR 291 million, down from SAR 306 million during Q4 2014.
Commenting on these results, HH Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer, chairman of the Board of Directors of Zain KSA said: ""The Company is clearly continuing to improve its operating performance in, what remains a very competitive market. I am proud to see that the Company continues to play its part in developing the private sector economy within the Kingdom. It is clear that we have an important role to play in the transformation of the Kingdom towards a digitally enabled and diversified economy.""
Mr. Hassan Kabbani, chief executive officer of Zain KSA said: ""We are witnessing significant changes in the usage behavior of our customers as they become much more active members of the digital society in Saudi Arabia. Customers are consuming an ever increasing amount of our data services. The Company's sustained improvements in its financial results demonstrate that we are both selling more digital services as well as improving the monetization of these services. The company's strategy of striving to offer the best mobile video streaming services in Saudi Arabia, appears to be resonating well with consumers.""