Zain KSA has announced its financial results for the first quarter of 2024, reporting a revenue of SAR 2.5 billion. This marks a 4.7% increase compared to the revenue generated during the same period in 2023. Zain KSA reported a net profit of SAR 67 million compared to SAR 1.1 billion in the first quarter of last year.
The decrease can be attributed to the company recognizing the gains from the tower infrastructure sale and leaseback deal that took place in the first quarter of 2023.
The financial statements for the first quarter of 2023 have been reclassified, reflecting the company's return to its standard earnings curve driven by its core business operations. Zain KSA’s net profit before Zakat amounted to SAR 79 million, compared to SAR 24 million in the first quarter of 2023. This increase of SAR 55 million resulted from excluding the gains derived from the towers deal.
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These results demonstrate stability in operational performance with sustained growth across all aspects of the company’s business, particularly the 5G portfolio encompassing services and solutions. Zain KSA’s 5G services and solutions continued to see high demand from the enterprise sector in the first quarter of the year, alongside a growth in fintech operations through “Tamam.”
Eng. Sultan bin Abdulaziz Al-Deghaither, Zain KSA CEO, stated, “Our financial results for the first quarter of the year reflect a growth in Zain KSA’s positive operational and organizational performance. This growth in operational income and profit follows the conclusion of the tower infrastructure sale and leaseback deal reflecting our solid operational and financial strategy centered around innovation and investment that is channeled toward maximizing our social and economic impact. We focus on enhancing our 5G ecosystem, particularly for the enterprise sector.
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“Meanwhile, we continue to enhance our operational and financial efficiency, focusing on the sustainability of innovation and creating value for our clients, partners, and the Kingdom of Saudi Arabia. Our goal is to enable the nationwide digital transformation in line with Saudi Vision 2030’s goals, contributing to an ambitious nation, a thriving economy, and a vibrant society. We will continue to keep pace with the rapid growth in demand for our cutting-edge services and solutions by individuals and the business sector, providing the best digital experiences in telecom, fintech, digital entertainment, and cloud computing.”
Al-Deghaither added, “This year, we inked several agreements as part of our ongoing plan to enhance the operational efficiency of our 5G network. We continued to invest in the latest technologies, notably AI. We have also entered strategic alliances to cultivate a national talent pool capable of leading Saudi Arabia’s transition toward a new digital era and fostering sustainable innovation.”
Notably, Zain KSA has been ranked as one of the top 50 Saudi brands in social responsibility by Forbes and Saudi CSR. It was also ranked as the 13th most-valuable Saudi brand by Brand Finance.
