Zain posts BD 917,000 Q1 profit, LTE usage up 121pc

Manama : Zain Bahrain, a telecom innovator focused on enhancing customer experience, posted a BD 917,000 (US$ 2.4 million) net profit for the three-month period ending March 31, as data usage through its state-of-the-art 4G LTE network surged by 121 per cent. 

The 10pc decrease from the BD 1 m (US$ 2.7 m) earned during the same quarter last year comes on the back of 9pc lower revenues of BD 16 m (US$ 42.3 m) for the current period, compared to BD 17.8 m (US$ 46.6 m) a year earlier. 

Meanwhile, the operator continued gaining market share, showing an increase in its customer base versus the previous quarter. The movements in customer growth and data use are largely attributable to Zain Bahrain’s $100 m investment in the Kingdom’s most advanced mobile LTE network, with wider and more stable coverage and faster data speeds. 

EBITDA changed by 11pc to BD 6.2 m (US$ 16.4 m) for the quarter, compared to BD 6.9 m (US$ 18.3 m) in Q1 last year when the EBITDA margin for the first quarter of 2016 had reached 38.7pc.

Zain Bahrain Chairman, Shaikh Ahmed bin Ali Al Khalifa said, “This quarter’s results further reinforce our view that Zain Bahrain’s strategy of focusing on customer experience and providing the most advanced technologies through its state-of-the-art network has started to deliver tangible returns on several of our key indicators. This has resulted in an increase in our customer base to above 807,000 active users by the end of the quarter. Moreover, this increase in our customer base, along with our segmented offers targeting data, has resulted in a 121pc jump in data growth over the previous year.”

Shaikh Ahmed continued, “We plan to take full advantage of our ownership of Bahrain’s newest and most modern mobile telecommunications infrastructure, a competitive advantage that has placed us at the beginning of a new cycle of growth that will further enhance shareholder value in the years to come.” 

The first quarter of 2016 saw the launch of innovative new promotions and customer engagement initiatives, including the bundling of the Samsung S7 and S7 Edge with Zain Bahrain smart packages. The cutting edge models, the highest advancements in Samsung history, were selected to showcase Zain Bahrain’s state-of-the-art 4G LTE and HD voice capabilities, which ensure that customers enjoy a superior network experience. 

Following Zain Group’s lead, Zain Bahrain continued shifting its strategic focus from corporate social responsibility to more sophisticated corporate sustainability initiatives that are expected to bring greater returns to both the company and the communities it supports.