Zain Group, a leading telecommunications services company in the region, has reported a 73% jump in its net profit for the first half which rose to KD220 million ($717 million), boosted by gains from strategic investments, while its revenue surged 5% to KD1.14 billion ($3.68 billion).

Announcing the results for the six-month period ended June 30, Zain said its net profit included a $411 million gain from strategic investments made through Zain Ventures. Zain's consolidated ebitda rose 6% to KD378 million, with an ebitda margin of 33%.

The board declared an exceptional interim dividend of 17 fils per share, payable on October 6 to eligible shareholders.

For the second quarter, Zain's net profit rose 90% year-on-year to KD140 million, while revenue increased 5% to KD568 million. Ebitda rose to KD196 million, giving an ebitda margin of 35%.

Second-quarter net profit included a $288 million gain from Zain Ventures' strategic investments.

Zain's customer base increased 2% year-on-year to 51.9 million at the end of June, supported by network expansion and demand for 5G services.

Data revenue rose 15% to $1.5 billion in the first half, accounting for 40% of group revenue. Enterprise revenue increased 13%, while revenue from the group's growth verticals, including digital services, fintech and technology businesses, rose 36% to $479 million.

Commenting on the results, Chair of the Board Nour Al Jassim said: "As a leading regional TechCo, the Board is working closely with executive management to sustain this positive trajectory and to advance our ESG and business initiatives, reinforcing our commitment to delivering sustainable shareholder value."

"In parallel, we are strengthening our constructive engagement with regulators and key stakeholders across our footprint, ensuring that the meaningful connectivity and customer experience we deliver across all business segments remain exceptional," she stated.

“Building on this remarkable H1 2026 performance with Earnings Per Share (EPS) of 51 fils, the Board is pleased to declare an exceptional interim dividend of 17 fils per share,” she added.

Al Jassim pointed out that the Group's focus will be to maintain this positive trajectory and advance its ESG and business initiatives to create sustainable shareholder value.

The fintech customer base grew 35%, driving a 29% increase in revenue, while Zain Omantel International revenue rose 45%. Zain said its net profit in Saudi Arabia increased 84% in the first half, while profit in Iraq rose 7%.

The company invested $252 million in capital expenditure during the first six months, equivalent to 7% of revenue.

Zain also said it had won a 25-year technology-neutral telecom licence in Syria after a successful $747 million bid for a 75% stake in a Syrian telecom entity. It plans to launch its Zain brand in the country in the first quarter of 2027.

Zain Group Vice-Chairman and Chief Executive Bader Al-Kharafi attributed the performance to operational efficiencies driven by artificial intelligence, strategic investments and increased monetisation of 5G networks.

"This 17-year high exceptional financial performance over the past six months reflects our disciplined navigation of regional challenges, coupled with the successful implementation of AI‑driven operational efficiencies, targeted strategic investments, and the accelerated monetization of our 5G networks," he stated

"The Board of Directors declaration of a special 17 fils per share interim dividend reflects the confidence and success of our ‘4WARD–Progress with Purpose’ strategy that is propelling the Group’s diversified operating model to new levels of performance and value creation. It also reaffirms the strong financial solvency of company’s balance sheet and future growth prospects," he added,

The company said it would continue investing in digital infrastructure, enterprise services, fintech and other growth businesses.

Zain Ventures' portfolio includes investments in companies such as SpaceX, xAI and Revolut, according to the company.-TradeArabia News Service