Telecom operator Zain KSA has achieved operational break-even in Q2 2015 clocking positive operating profit (EBIT) against an operating loss of SAR 136 million in Q2 2014.
This is the first operational break-even for Zain KSA, a leading telecom service provider in the Middle East with nearly 11 million customers. One of the focus areas of Zain is data business.
Operating losses of Zain KSA decreased during the first half by 78 percent to SAR 58 million compared to SAR 263 million during the first half of 2014.
The company posted a 64 percent growth in EBITDA during Q2 2015 to SAR 435 million against SAR 264 million in Q2 2014. In H1, EBITDA rose 39 percent to SAR 782 million from SAR 564 million for the same period last year. EBITDA margin rose to 26 percent in Q2 2015 from 17 percent in Q2 2014, and to 23 percent in H1 2015 from 18 percent for the first half of 2014.
Gross profit rose 19 percent to SAR 949 million for the second quarter of 2015 from SAR 797 million in Q2 2014 with a gross margin of 52 percent, and by 14 percent in H1 to SAR 1,824 million from SAR 1,596 million.
Zain KSA said its net losses for the quarter reduced by 39 percent to SAR 201 million from SAR 329 million during the same quarter of 2014. For the half year period net losses were reduced by 29 percent to SAR458 million against SAR 647 million during H1 2014.
Hassan Kabbani, chief executive officer of Zain KSA, said: “Achieving EBIT breakeven is a very important milestone in the turnaround of Zain KSA. The operational improvements we have made as part of our strategy are now delivering consistent results.”
Baburajan K
editor@telecomlead.com
