Zain Saudi Arabia ( Zain KSA ) announced significant improvements in its financial results for Q1, 2016, ending March 31.
Revenues grew by 7 percent in Q1, 2016 reaching SR1,765 million compared with SR1,657 million in Q1, 2015, representing a 6 percent increase in revenues compared with SR1,672 million for Q4, 2015.
The company recorded a 28 percent increase in EBITDA to reach SR445 million in Q1, 2016, up from SR348 million during the same quarter of 2015, and a 10 percent increase from SR405 million in Q4, 2015. EBITDA margin rose to 25 percent compared to 21 percent in Q1, 2015, and 24 percent in Q4 2015.
The company recorded a 24 percent increase in gross profit to reach SR1,086 million for Q1, 2016, reflecting a gross margin of 62 percent, up from SR874 million and 53 percent gross margin in Q1 2015.
Gross profit also increased by 2 percent, up from SR1,065 million in Q4, 2015.
Zain KSA recorded a 46 percent reduction in operating losses (EBIT), to reach SR32 million for Q1 2016, down from SR59 million in Q1, 2015, while narrowing operating losses by 61 percent compared to SR 82 million in Q4 2015.
Net losses for Q1, 2016 were narrowed by 3 percent to SR250 million, down from SR257 million during the same quarter last year.
Prince Naif bin Sultan bin Mohammed bin Saud Al-Kabeer, chairman of the board of directors of Zain KSA said: "The company continues to report net losses mainly due to the high amortization charges associated with its license and the cost of financing its debt."
Hassan Kabbani, CEO, Zain KSA said: "During Q1, 2016 we were able to maintain our positive results, both financially and operationally, following a record-breaking year."