Zain Saudi Arabia narrows Q2 losses by 11%

Zain Saudi Arabia reported a significant increase in EBTIDA during the first half of 2014, reflecting a 22 per cent growth rate to reach SAR564 million (US$ 150 million) up from SAR 464 million in H113.

The company succeeded in raising its EBTIDA margin to 18 per cent, up from 14 per cent during the same period of last year.

The company narrowed net loss by 11 per cent, to SAR329 million for Q214. A year-on-year 16 per cent reduction in net loss was achieved during H114.

Gross margin increased to 51% in H114, up from 47% in the same period of 2013.

Zain Saudi Arabia reported a 107 per cent year-on-year rise in the number of mobile data customers in Q2-2014, and a 31 per cent increase quarter-on-quarter. Data traffic on the network increased significantly during the second quarter, up 564% year-on-year and 64 per cent quarter-on-quarter.

The increase in mobile data customers and usage contributed to a growth in mobile data revenues during Q214 by 94 per cent year-on-year, and six per cent quarter-on-quarter. Zain’s 4G network coverage also expanded to cover 52 per cent of domesticated areas during the quarter, with an increase in network locations, reaching 6,113 at the end of the quarter.