Zain Saudi’s CEO credits operating profit to turnaround plan

Mobile Telecommunications Co. Saudi Arabia’s (Zain Saudi) operating profit of SAR 900,000 in the second quarter is the result of a comprehensive turnaround plan enforced by its management, the company’s chief executive Hassan Kabbani told Al-Arabiya.

In a statement to Tadawul, the company said earlier said it saw its first operating profit, or earnings before interest and taxes (EBIT), since inception.

Kabbani added that the company’s customer base grew by 29 percent to 11.9 million subscribers in Q2-2015, compared to 9.3 million subscribers in the same quarter last year. Internet service users increased 104 percent year-on-year during the quarter.

On Wednesday, Zain Saudi reported a 19 percent year-on-year increase in second-quarter gross profit; mainly attributed to higher demand for the telco’s products and services.

Zain Saudi also posted a SAR 201 million net loss for Q2-2015, an improvement compared to the SAR 329 million net loss it recorded in Q2-2014.