Zain Group, a leading telecom services innovator in seven markets across the Middle East and Africa, has generated a consolidated revenue of KD1.1 billion ($3.8 billion) for the first nine months, down 3% year-on-year (Y-o-Y), while its net income grew 5% to KD135 million ($450 million). 

 

Announcing the consolidated financial results for the nine-month period ended September 30, Zain said its consolidated ebitda for the period reached KD 478 million ($1.6 billion), down 3% Y-o-Y, still reflecting a healthy ebitda margin of 42%. 

 

Efficiency and optimization initiatives resulted in consolidated net income increasing 5% Y-o-Y, amounting to KD135 million ($450 million). Earnings per share amounted to 31 fils ($0.10) for the nine-month period. 

 

Zain said the increase in the nine month consolidated net income was mainly due to the impressive revenue performance of the majority of Group operations, except primarily for Zain Iraq, which had its profitability impacted by the currency devaluation in the country. 

 

Moreover, Group net income increased on account of successful cost optimization initiatives and loan restructuring across operations and the Group, which resulted in significant savings in financing costs, it stated.

 

On the Q3 results, Zain Group said it had generated consolidated revenue of KD385 million ($1.3 billion), down 4% Y-o-Y. Ebitda for the quarter reached KD168 million ($557 million), an increase of 3% Y-o-Y, reflecting a 43% ebitda margin. 

 

Net income for the three months amounted to KD 49 million ($165 million), a 5% increase Y-o-Y. Earnings per share for Q3’21 amounted to 11 fils ($0.04).

 

Key highlights of the nine-month 2021 results included:

 

*The Ordinary General Assembly on October 12 approved distribution of an interim cash dividend of 10 fils, totaling $143 million as part of 33 fils per share annual minimum dividend policy 

*The 9M 2021 period was highlighted by the 104% Y-o-Y increase in net income at Zain Sudan, a 23% net income increase in Zain Jordan and a 18% net income rise in Zain Bahrain

*Data revenue reached $1.58 billion representing 42% of the Group’s consolidated revenue

*The first nine months saw Zain Group invest over $665 million in Capex reflecting 18% of revenue, mainly in Fiber-to-the-Home (FTTH); spectrum fees; 4G upgrades and 5G rollouts

*Zain Kuwait witnessed impressive growth in 5G consumer and B2B customers, with Zain Saudi Arabia expanding its 5G network to over 51 cities covering all regions in the kingdom

*Zain joins forces with four regional operators to implement Open Radio Access Network (Open RAN) solutions to drive innovation, cost efficiencies, and customer mobile experience 

 

Commenting on the results, Group Chairman Ahmed Al Tahous said: "We continue to rollout high quality telecommunications services across our markets in an inclusive manner, empowering and improving the socio-economic well-being of the communities we serve."

 

"We are also focused on driving efficiencies and seeking new lucrative opportunities to create shareholder value. We thank government authorities across our markets for their vision and support in helping us overcome the many challenges faced by the telecom sector at large," he added.

 

Operational review of key markets for the nine-month period include:

 

*Kuwait: Maintaining its market leadership, Zain Group’s flagship operation saw its customer base serve 2.3 million. It remains the group’s most profitable operation with revenue for 9M 2021 growing 1% and reaching KD 235 million ($779 million), ebitda grew 9% to reach KD 91 million ($303 million). 

 

The net income grew by 2% to reach KD58 million ($193 million) for 9M 2021, with data revenue accounting for 41% of total revenue, representing 6% growth.

 

*Saudi Arabia: Zain KSA generated revenue of SR5.8 billion ($1.6 billion), ebitda for the period reached SR2.3 billion ($616 million), reflecting an ebitda margin of 40%. Net income for the nine months reached SR143 million ($38 million). Data revenue represents 49% of total revenue and customers served stood at 7.5 million. 

 

For Q3, Zain KSA revenues increased by 3% to reach $530 million, ebitda increased by 5% to reach $215 million, with net profit stable at $16 million.

 

*Iraq: Zain Iraq’s revenue surged to $574 million and ebitda amounted to $226 million. The net income reached $31 million for 9M 2021. The operator served 16.5 million customers maintaining its market leading position.

 

Bahrain: Zain Bahrain generated revenue of $127 million for the nine-month period with a 4% growth. The ebitda grew by 4% to reach $44 million, while its net income grew by an impressive 18% to reach $12 million.

 

Zain Vice-Chairman and Group CEO Bader Al Kharafi said: "The operational performance that saw net profit growth over the nine-month period, despite the huge impact of unavoidable currency devaluations, is testament to the successful implementation of the ‘4Sight’ strategy."

 

"I am extremely proud of the digital transformation achievements and network rollouts our teams have accomplished across our footprint, enabling us to continue in our mission to foster sustainable systemic change and provide meaningful connectivity in offering high-quality and appealing services to our customers," he added.

 

Al Kharafi said: "To support the ever-growing demand for high-quality data and benefit from the many lucrative opportunities especially in the enterprise space, sound international connectivity and capacity is critical in offering customers quality services across all our markets."

 

"Accordingly, the company has revamped the Group’s Wholesale business, aiming to become the carrier-of-choice in the region for telcos, other carriers and OTTs. The entity will act as the single interface between Zain opcos and other international carriers, thereby operating at scale and achieving efficiencies. It will also invest in its own infrastructure, including platforms, international cables and data centers," he added.-TradeArabia News Service