Zain Saudi reports 357% rise in gross profit in Q2

Zain Saudi Arabia yesterday announced increased revenues for the three months ending June 30, reaching a break-even point for profit before interest on its Murabaha loan, taxes and depreciation (EBITDA) for the second quarter of 2010. This was achieved within a period of 22 months since commencing operations in August 2008.

Revenue was up 107 per cent to SAR 1.45 billion (US$387 million), compared to SAR 702 million in Q209, with gross profit rising 357 per cent to SAR 608 million compared to SAR 133 million for the same period in 2009. Operational losses decreased by 55 per cent to SAR 314 million compared to SAR 706 million for the same period last year.

Zain Saudi Arabia took its total customer base to over seven million. The operator reported a reduction in net loss by more than 26 per cent, to SAR 632 million compared to SAR 857 million in 2009, in addition to significant growth in gross profit of 42 per cent compared to the first quarter of 2010.

Zain is looking to expand its network to cover 93 per cent of the populated areas of Saudi Arabia by the end of 2010.