(MENAFN- Kuwait News Agency (KUNA)) KUWAIT, July 14 (KUNA) -- Zain Saudi Arabia's net income growth soared to a record-high USD 69.2 million for first six months of 2019, said the telecommunications' giant on Sunday.
"This is an incredible six-month period, highlighted by growth in all key financial indicators, placing the company in a strong fiscal position," said Bader Al-Kharafi, Zain's Vice Chairman and Group CEO, and Zain KSA Vice Chairman.
Breaking it down, the Company said in a press release that for the first six months of 2019 (H1), Zain KSA generated revenues of SAR 4.15 billion (USD 1.11 billion), up 17 percent compared to the same period in H1 2018, while Earnings before interest, tax, depreciation and amortization (EBITDA) for the period increased by 60 percent to SAR 1.9 billion (USD 506.4 million), reflecting an EBITDA margin of 46 percent.
Net income for the period soared to reach an unprecedented SAR 260 million (USD 69.2 million), reflecting a significant improvement on the H1 2018 net loss of SAR 115 million (USD 30.6 million).
As for the three-month period ended 30 June 2019 (Q2), Zain KSA recorded revenues of SAR 2.1 billion (USD 548 million), an 11-percent increase on Q2 2018.
EBITDA for the period reached SAR 944 million (USD 251.8 million), reflecting a 46 percent EBITDA margin, up 53 percent on Q2 2018.
Net income for Q2 2019 amounted to SAR 130 million (USD 34.7 million), reflecting a significant turnaround on the loss of SAR 38 million (USD 10 million) during Q2 2018.
Highlighted as 'Key Operational and Financial' notes for the three months ended 30 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 USD 600 million facility.
Also 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 cash flow generation; bringing the total repayment amount to SAR 1.425 billion in the past nine months.
Zain KSA also made the first 5G call in the Kingdom on its network, successfully exceeding speeds of 1,000 Mbps. That in addition to 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.
According to Al-Kharafi, "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 sincere gratitude to the leadership of the Kingdom of Saudi Arabia for creating an environment in which companies such as Zain KSA can thrive, noting, "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". (end)
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