Zain KSA unveiled its 2023 financial results, marking a record annual revenue of SAR 9.9 billion, up from SAR 9.1 billion in 2022, with an impressive 9% growth. This revenue surge propelled Zain KSA to achieve its highest-ever annual profit, reaching SAR 1.3 billion, a remarkable increase of 131% compared to its 2022 profit.
For the second consecutive year, the company also announced the Board of Directors' recommendation to distribute cash dividends to shareholders for the year 2023 at a rate of 5% of the nominal share value. This decision reinforces the company's sustainable financial and operational performance, emphasizing its unwavering commitment to creating value for all stakeholders, in line with its dedication to empowering innovation and development in the Kingdom's telecommunications and digital services sector.
This historic net profit was partly driven by the successful transfer of the passive infrastructure of 8069 towers, which amounted to SAR 1 billion in 2023, as part of the tower infrastructure sales deal. Additionally, Zain KSA’s growth in earnings was attributed to the sale of a 20% stake in Golden Lattice Investment Co. (GLIC), amounting to SAR 121 million.
Zain KSA’s positive financial results resonate with its sustainable strong operational and financial performance, driven by its focus on 5G services and solutions, robust business sector revenues, and a notable uptick in demand for individual services— most notably, the Yaqoot Digital service. Driving value creation, Zain KSA doubled down on its technological investment through ventures in the green technology sector and strategic partnerships across both public and private sectors. The success of these investments extends to adjacent markets like financial technology, demonstrated by the impressive performance of fintech services offered through Tamam Finance.
Commenting on these results, Zain KSA’s Chairman of the Board, HH Prince Naif bin Sultan bin Mohammad Bin Saud Al Kabeer, said: “The financial results for 2023 are a direct outcome of our company's sustainable financial, operational, and investment performance, driven by a steadfast commitment to innovation and development. These two factors have been instrumental in guiding our company through a transformative journey in recent years, cementing our position as a leading provider of cutting-edge communication services and digital solutions in the Kingdom. Zain KSA has evolved into an integrated digital ecosystem, driving and empowering our nation's comprehensive digital transformation by delivering an integrated and distinctive digital experience, leveraging future technologies to create a wonderful world.”
HH Prince Naif added: “Guided by the principles of effective governance and organizational efficiency, we've achieved these remarkable results. We take pride in leaving a lasting impact that transcends our company to support the developmental aspirations of our astute leadership, thereby contributing to Saudi Vision 2030 goals and empowering a smart and knowledge-based digital economy that paves the way for economic diversity, environmental sustainability, and social well-being.
“In 2023, we played a pivotal role as a key partner in the Kingdom's development through strategic partnerships, initiatives, and projects, elevating our nation's global innovation and development position. For the second consecutive year, we're delighted to announce to our shareholders the Board of Directors' recommendation for dividend distribution. This success is a testament to the collaborative efforts of the entire Zain family, including our dedicated employees and executive management. Together, we share a unified mission and vision: maximizing value for our shareholders and ensuring its sustainability."
Zain KSA’s CEO, Eng. Sultan bin Abdulaziz Al-Deghaither, stated: “The 2023 financial results mark a pivotal shift in our operational and profit curve. Today, we witness the tangible outcomes of the integrated technological ecosystem we have diligently crafted over the past years through strategic investments in innovation and development, localizing cutting-edge technologies, and delivering a distinctive user experience for our diverse customer segments, including individuals, businesses, and governmental entities. Throughout 2023, our focus has been on pioneering sustainability by strategically investing in green technology to secure the future of our planet for generations to come. As a testament to this commitment, we proudly launched the world's first zero-emission 5G network, designed and implemented entirely in our Kingdom.
“Harnessing the communications and digital services sector and contributing to the transition of our national economy into a digital economy, Zain KSA signed a framework agreement with Shareek— the Private Sector Partnership Program— under the patronage of His Royal Highness Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister. This agreement paved the way for the development of several hyper-scale data centers to attract global companies and empower modern technological investments across the Kingdom. We have stood firm in our dedication to boosting cloud capabilities and 5G infrastructure through strategic partnerships with global tech leaders, paving the way for the next generation of communication networks, aspiring to elevate the digital experience throughout the Kingdom and localize ICT technologies, in line with Saudi Vision 2030 goals.”
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Eng. Al-Deghaither added, “Emphasizing human capital development, Zain KSA made instrumental contributions, empowering the sector with local talent to become a key enabler of a knowledge-based society and a smart digital economy. To this end, we have signed a Memorandum of Understanding (MoU) with the Ministry of Human Resources and Social Development to train 50,000 Saudi men and women over the next three years through the ‘WAD’ initiative. Furthermore, we have launched a series of initiatives designed to address the digital education gap across the Kingdom, including remote areas, with a focus on supporting the localization of digital education and empowering teachers nationwide.”
In its 2023 corporate sustainability strategy, Zain KSA seamlessly integrated environmental, social, and corporate governance (ESG) principles into its operational, financial, and administrative processes, driving innovation and responsible achievements. This effort resulted in Zain KSA's upgraded (A) classification within the MSCI Environmental, Social and Governance (ESG) Universal Index.
