Zain Saudi Arabia posts record profits for 2015

Zain Saudi Arabia released its end-of-year financial data Thursday, posting record gross profits for 2015 of more than $1 billion, a 23 percent increase from the year before.

The company also recorded a drop of 73 percent in operating loses; net losses dropped by 23 percent.

"The company is clearly continuing to improve its operating performance in what remains a very competitive market," Prince Naif Al Kabeer, chairman of the Zain KSA board of directors, said. "I am proud to see that the company continues to play its part in developing the private sector economy within the kingdom. It is clear that we have an important role to play in the transformation of the kingdom towards a digitally enabled and diversified economy. I would like to extend my gratitude to the executive management and the whole team, who have achieved these positive operating results through their effective execution of the company's transformation plan."

Al Kabeer said the losses the company does have come mainly from high amortization costs associated with maintaining its licenses and paying off debt.

Zain KSA CEO Hassan Kabbani said the company's success in 2015 depended heavily on the company-wide buy-in to Zain's "Winning through caring" transformation plan. The company improved the quality, speed and coverage of its 4G LTE data network and implemented an expansion and upgrade of its network.

The company also opened 91 branded points of sale. Kabbani said all of these changes were driven by the need to meet consumer demand.

"We are witnessing significant changes in the usage behavior of our customers as they become much more active members of the digital society in Saudi Arabia," he said. "Customers are consuming an ever increasing amount of our data services. The company's sustained improvements in its financial results demonstrate that we are both selling more digital services as well as improving the monetization of these services. The company's strategy of striving to offer the best mobile video streaming services in Saudi Arabia appears to be resonating well with consumers."