Zain Group declares unprecedented financial accomplishments for the year 2023 in its Saudi Arabian operations, Zain KSA, marking a historic high in annual revenue at SAR 9.9 billion, showcasing a notable 9% annual growth. This surge in revenue propelled Zain KSA to attain its all-time highest annual profit, reaching SAR 1.3 billion, an impressive annual surge of 131%.
For the second consecutive year, the Company has announced the recommendation by its Board of Directors to distribute cash dividends to shareholders for 2023, set at 5% of the nominal share value.
The remarkable net profit for the year can be attributed to the overall net gain from the sale and leaseback transaction of all 8,069 towers, fully recognized in 2023, amounting to a total of USD 303 million.
Zain KSA’s positive financial results are a reflection of its sustainability-focused robust operational and financial performance. This success is driven by a strategic emphasis on 5G services and solutions, resilient enterprise (B2B) and wholesale sector revenues, and a significant uptick in demand for appealing individual digital services, notably the Yaqoot digital operator service and Taman, the company’s microfinance arm.
In response to the financial results, Bader Al-Kharafi, Zain Vice Chairman & Zain Group CEO, and Zain KSA Vice-Chairman, expressed, “These record-breaking results underscore the collective efforts of Zain Group and Zain KSA teams in executing a profitable operational and efficiency optimization strategy, fueled by innovation and digital service growth. The decision to distribute dividends for the second consecutive year reflects the enhanced financial strength of the company and its commitment to sustainable growth through a robust 5G network that empowers the community and drives enterprise sector profitability.”
Al-Kharafi continued, “Together, Zain Group and Zain KSA are aligned in our mission to play a pivotal supporting role in the Kingdom’s Vision 2023 and maximize value for shareholders alongside a corporate sustainability agenda focused on providing meaningful connectivity for equitable systemic change.”
Aligning with its 2023 corporate sustainability strategy encompassing safeguarding the planet, addressing societal challenges through core business, enabling an inclusive digital society, and building the youth of the future, Zain KSA seamlessly integrated environmental, social, and corporate governance (ESG) principles into operational, financial, and administrative processes, fostering innovation and responsible achievements.
The operator’s commitment to green technology materialized with the launch of the world’s first zero-emission 5G network in the Red Sea. Additionally, Zain KSA’s framework agreement with Shareek, the Private Sector Partnership Program, paved the way for the development of hyper-scale data centers, attracting global companies and driving modern technological investments across the Kingdom.
These endeavors culminated in Zain KSA’s upgraded A classification within the MSCI ESG Index, reinforcing its dedication to sustainability and responsible corporate practices.
