Zain KSA achieved its highest half-year profit ever during the first half of 2023, amounting to SAR 687 million, a 221% increase compared to the first half of 2022. The increase in profit is attributed to a growth in revenue during the first half of the year to SAR 4.8 billion, a 10% increase compared to the corresponding period of 2022. Zain KSA achieved these results despite a rise in operational costs related to the telco towers deal and financing costs. These historic half-year results also coincided with Zain KSA’s distribution of its first-ever cash dividends to shareholders for the year 2022 at a rate of 5% of the share’s nominal value.
The half-year profit increase was driven by Zain KSA’s sustained business growth and the expansion of 5G services that drove up revenue from business solutions as well as from individual packages which saw a growth in demand amidst the recovery of Hajj and Umrah and the rise in demand on Yaqoot digital services. The growth witnessed by Zain KSA’s FinTech arm, Tamam, was another revenue driver during the mentioned period.
Commenting on the financial results, the CEO of Zain KSA Eng. Sultan Bin Abdulaziz Al-Deghaither stated: “Over the past few years, we have successfully redefined our Customer Experience, making it more innovative and streamlined, to efficiently meet the needs and aspirations of customers. This has positioned us as the preferred telecoms and digital services provider in the Kingdom. Results of the first half of 2023 demonstrate the effectiveness of our investment choices, operational strategies, and financial policies, which have been crucial in ensuring the Company’s continued growth and fueling demand for our solutions and services targeting both individuals and businesses.”
He added, “During the first half of 2023, Zain KSA scored several achievements that we are proud of and that are instrumental in ensuring the sustainability of growth and innovation, both within the Company and across the entire industry in the Kingdom. One of the most prominent accomplishments is an agreement with the Private Sector Partnership Reinforcement Program (Shareek) under the patronage of His Royal Highness Crown Prince and Prime Minister, Prince Mohammed bin Salman – may Allah bless him. We also signed an MoU with the Ministry of Human Resources and Social Development to train 50,000 Saudi men and women during the next three years within the national campaign to stimulate training within the private sector ‘Wad’. Additionally, we signed an MoU with Al-Rajhi Bank to become a strategic partner for its leading loyalty program in the Kingdom, ‘Mokafaa’. We also remained committed to bringing our existing and new customers exceptional experiences through various offerings that include voice and data, in addition to FinTech, cloud, and digital entertainment solutions, as well as digital services for individuals. This diversity further enhances our contribution to supporting the nationwide digital transformation in the Kingdom and improving the quality of life in accordance with Saudi Vision 2030.”
In another recent achievement, Zain KSA advanced 15 places in Forbes Middle East’s Top 100 Listed Companies 2023, to 79th place. The new ranking strengthens Zain KSA’s regional position as a leading provider of telecoms and digital services as well as an enabler of digital transformation and an advocate of innovation and technology in the Kingdom.