ShareRIYADH: Zain Saudi Arabia (Zain KSA), announces record-high financial results for all key indicators for the first six-months and second quarter ended 30 June 2019, with the operator serving 8.3 million customers.
Key Operational and Financial notes for the three months ended 30 June, 2019:
- In June 2019, Zain KSA signed a new Islamic two-year (renewable) Murabaha Junior Credit facility agreement amounting to SAR 2.25 billion with a syndicate of five core Saudi Arabian and regional banks to refinance a US $600 million facility
- During Q2 2019, the company made an early voluntary payment towards the Senior Murabaha financing agreement amounting to SAR 300 million, reflecting the company's solid cashflow generation; bringing the total repayment amount to SAR 1.425 billion in the past nine months
- Zain KSA made the first 5G call in the Kingdom on its network, successfully exceeding speeds of 1000 Mbps
- Zain KSA's 5G technology became available at Neom Bay Airport, making it the first airport in the region to offer a 5G network
- The launch of appealing B2B and individual data monetization initiatives and packages have resulted in an impressive uptake leading to healthy growth in customers, ARPU and revenue
Commenting on H1 2019 results, Bader Al-Kharafi, Zain Vice-Chairman and Group CEO, and Zain KSA Vice-Chairman said, "Zain KSA has experienced an incredible six- months, highlighted by growth in all key financial indicators, which has resulted in the company recording its fourth consecutive quarter of net income.
Furthermore, the company's share price and market capitalization has more than doubled over the last 12 months, all testament to investor confidence in the successful implementation of the turnaround growth strategy and future roadmap."
Al-Kharafi added, "The exceptional performance is a direct result of focused customer service; investment in network upgrades and fiber-to-the-home (FTTH) expansion; innovative B2B acquisition and cloud strategies; and driving operating efficiencies. The company has also been successful with respect to its data monetization initiatives that are all gaining significant momentum and resulting in healthy ARPU and revenue growth."
Al-Kharafi continued, "The Saudi ICT sector is witnessing a major renaissance on multiple levels and we are well prepared to take advantage of the enormous digital growth opportunities in creating shareholder value."
Al-Kharafi concluded by expressing his sincere gratitude to the leadership of the Kingdom of Saudi Arabia for creating an environment in which companies such as Zain KSA can thrive, stating, "The Board and executive management teams of Zain Group and Zain KSA are committed to playing a key role in the Kingdom's ICT sector and offering customers quality and life empowering telecommunication services in line with Vision 2030. It is gratifying to have authorities at all levels of government support and commit to our presence in the Kingdom in such a positive manner. Such support further increases the attractiveness of the Kingdom's economy, contributing to its ongoing prosperity."
