Zain Group Q1 profit rises 6%

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Zain Group yesterday reported a 6% growth in the first-quarter net profit helped by higher revenues and active customer base increases across its footprint. Net income reached KD 47 million (USD 156 m), up 6% Y-o-Y reflecting an Earnings Per Share of 11 Fils (USD 0.04). Across its footprint, Zain increased its active customer base by 2.3 m to serve 50.9 m. Kuwait, Saudi Arabia and Bahrain witness impressive growth in 5G customers, Zain said. Consolidated revenue rose 7% to KD 408 m (USD 1.3 billion) on a year-on-year (Y-o-Y) basis.

Consolidated data revenue reached USD 536 m, representing 40% of the Group’s overall revenue. Region-wise, Zain Bahrain generated revenue of USD 46 m, an increase of 4% for Q1 2022. EBITDA increased 3% reaching USD 15 m, reflecting an EBITDA margin of 33%.

Net income increased 3% to USD 4.2 mn, with data revenue growing 6% to represent 45% of total revenue. END EBITDA for the quarter reached KD 154 m (USD 507 m), down 3% Y-o-Y, reflecting an EBITDA margin of 38%. For Q1 2022, foreign currency translation was impacted mainly due to the currency devaluation in Sudan from an average of 271 (SDG / USD) during Q1 2021 to an average of 483 (SDG / USD) during Q1 2022, costing the Group USD 120 m in Revenue and USD 80 m in EBITDA.

Commenting on the Q1 2022 results, Chairman of the Board of Directors of Zain Group, Ahmed Al Tahous said, “Our future-ready approach to invest heavily in 5G technology and 4G network expansion across all markets in recent years is paying off, evident by the 2.3 million additional customers and resulting revenue growth during the first quarter.”

Bader Nasser Al-Kharafi, Zain Vice-Chairman and Group CEO commented, “The overall profitable growth and impressive performances in key markets witnessed during Q1 2022 reaffirms the success of the 4Sight strategy in driving digital transformation and cost optimization initiatives. Our operational focus on expanding and monetizing our 4G, FTTH and 5G networks has created lucrative revenue streams particularly related to Enterprise (B2B) services to government and businesses of all sizes, a key area we will continue to nurture and expand.

We have made giant strides transforming Zain into the digital partner of choice for governments and enterprises across our markets.” “The solid performances of our operations in Kuwait and KSA, where net profits increased 22% and 97% respectively, are predominantly on the back of 5G and B2B customer and revenue growth, are extremely pleasing, as is the 156% net profit increase in Sudan where 4G customer uptake combined with currency mitigation related price revamps have contributed positively to all its financial metrics.

The Group financial performance would have been even more impressive if not for the unfortunate currency devaluation mainly in Sudan that impacted revenues by USD 120 million.” “We have witnessed exponential revenue and customer growth in several of our digital initiatives, particularly in regard to our fintech, pure digital operator, esports and API platform categories.”