Kuwaiti mobile operator Zain expects EBITDA growth of about 20 percent in the first half, the telecom firm's chief executive was quoted as saying.

 Shares of Zain jumped on the report, rising 5.5 percent  to 1.540 dinars by 0648 GMT, with trading volumes doubling the 90-day average, according to Reuters data.

EBITDA, or earnings before interest, tax, depreciation and amortisation 'is expected to (rise) around 20 percent in the first half', Al-Watan quoted Saad Al-Barrak as saying.

EBITDA advanced 25 percent to 175.7 million dinars ($660 million) in the first quarter, while net profit gained by 2.7 percent to 73.3 million dinars, the smallest profit since the first quarter of last year, according to Reuters data.

A Zain spokesman could not immediately comment. The company is expected to release first-half profits later this month. Analysts at Global Investment House expect Zain to post a 43.1 percent rise in second quarter net profit, according to a Reuters survey last month.

Separately, Zain will launch a $4.5 billion capital hike aimed at funding its expansion abroad by next month, the paper citing Barrak as saying. The subscription would end in mid-September.

Zain shareholders approved a 75 percent capital increase in March, to sell 1.42 billion shares at 850 fils each for a total of 1.2 billion dinars ($4.5 billion). There are 1,000 fils to the dinar.

Al-Barrak added that Zain was currently looking at several acquisition opportunities, without being more specific. Zain is about to launch operations in Saudi Arabia where it won with other investors the kingdom's third mobile phone licence for $6.11 billion last year.

'Full commercial operations for the Saudi unit will start by mid-August,' Al-Barrak said, according to Al-Watan. Zain bought Netherlands-based Celtel for $3.4 billion in 2005 to enter sub-Saharan markets where it is currently undertaking huge investments. - Reuters