Zain KSA Hits SAR 9.9 Billion Annual Revenue in 2023

Zain KSA has disclosed its financial outcomes for the year 2023, revealing a record-breaking annual revenue of SAR 9.9 billion. This marks a substantial growth of 9%, surpassing the SAR 9.1 billion recorded in 2022. The remarkable surge in revenue propelled the company to achieve its highest-ever annual profit, reaching SAR 1.3 billion, demonstrating an impressive 131% increase from the previous year.

For the second consecutive year, Zain KSA has announced the Board of Directors’ recommendation to distribute cash dividends to shareholders for the year 2023, set at a rate of 5% of the nominal share value. This decision underscores the company’s commitment to sustaining its financial and operational performance, emphasizing its dedication to creating value for all stakeholders. This aligns with its mission of fostering innovation and development within the Kingdom’s telecommunications and digital services sector.

The historic net profit is attributed to various factors, primarily the successful transfer of passive infrastructure comprising 8069 towers, amounting to SAR 1 billion in 2023 as part of a tower infrastructure sales deal. Additionally, Zain KSA’s financial success is linked to the sale of a 20% stake in Golden Lattice Investment Co. (GLIC), resulting in SAR 121 million.

The positive financial results are reflective of Zain KSA’s sustained operational and financial strength, driven by a strategic focus on 5G services and solutions, robust business sector revenues, and increased demand for individual services, notably the Yaqoot Digital service. Zain KSA has also intensified technological investments, particularly in the green technology sector, and forged strategic partnerships across public and private sectors. This successful diversification extends to adjacent markets, such as financial technology, with notable achievements in Fintech services through Tamam Finance.

Commenting on the results, Zain KSA Chairman of the Board, HH Prince Naif bin Sultan bin Mohammad Bin Saud Al Kabeer, emphasized the company’s commitment to innovation and development, solidifying its position as a leading provider of cutting-edge communication services and digital solutions in the Kingdom. He highlighted the role of Zain KSA as an integrated digital ecosystem, contributing to the nation’s comprehensive digital transformation.

Zain KSA CEO, Eng. Sultan bin Abdulaziz Al-Deghaither, expressed the pivotal shift in operational and profit trajectory in 2023. He credited the tangible outcomes to the integrated technological ecosystem crafted over the years through strategic investments in innovation, development, and the localization of cutting-edge technologies. The CEO highlighted Zain KSA’s commitment to sustainability, launching the world’s first zero-emission 5G network and signing a framework agreement with Shareek to develop hyper-scale data centers.

Furthermore, Eng. Al-Deghaither underscored Zain KSA’s dedication to human capital development, citing initiatives such as the ‘Wad’ initiative in collaboration with the Ministry of Human Resources and Social Development, aiming to train 50,000 Saudi men and women over the next three years. The CEO also highlighted initiatives addressing the digital education gap, with a focus on supporting the localization of digital education and empowering teachers nationwide.

In its 2023 corporate sustainability strategy, Zain KSA integrated environmental, social, and corporate governance (ESG) principles into operational, financial, and administrative processes. This commitment led to an upgraded (A) classification within the Environmental, Social, and Corporate Governance (MSCI ESG Index). The results underscore Zain KSA’s dedication to responsible business practices and innovation, contributing to the broader goals of Saudi Vision 2030.

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