Zain Group Q2 net soars 22%, declares interim dividend

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Zain Group, a leading telecommunications innovator, yesterday announced its 2022 quarterly and half-yearly financial results, reporting a surge in net profits helped by higher revenues across all revenue streams. The company also declared a 2nd consecutive interim dividend of 10 fils per share for the first six months of 2022. Zain served 51.7 million customers at the end of the period, a 7.1% increase year-on-year (Y-o-Y).

“The 5G network of our flagship operation in Kuwait is the driving force of the 9% increase in customers and generation of multiple streams of profitable government and enterprise revenue, resulting in an 11% increase for all key financial indicators - revenue, EBITDA and net income,” said Bader Al-Kharafi, Zain Vice-Chairman and Group CEO. “Similarly, the 5G network and appealing data monetization initiatives in both Saudi Arabia and Bahrain are driving growth on multiple levels.

In Iraq, Jordan and Sudan, the operations are monetizing their 4G networks profitably and we look forward to launching 5G services in those markets in the future, upon receipt of regulatory approvals.”

Quarterly results

Quarterly consolidated revenue was KD 421 million (USD 1.4 billion), up 14% Y-o-Y. EBITDA for the quarter reached KD 166 m (USD 544 m), up 9% Y-o-Y, reflecting an EBITDA margin of 40%. Net income amounted to KD 50 m (USD 165 m), up 22% Y-o-Y, reflecting earnings per share of 12 fils (USD 0.04).

H1 results

For the first six months of 2022, Zain Group generated consolidated revenue of KD 829 m (USD 2.7 billion), an increase of 10% Y-o-Y. EBITDA for the period reached KD 320 m (USD 1.1 billion), up 3% Y-o-Y, reflecting an EBITDA margin of 39%. Net income amounted to KD 98 m (USD 321 m), up 14% Y-o-Y, reflecting earnings per share of 23 fils (USD 0.07). Revenue from Bahrain grew 3% Y-o-Y reaching USD 89 m.

EBITDA for the period increased by 2% to USD 29 m, reflecting an EBITDA margin of 33%. Net income increased 3% to USD 7.6 m, with data revenue growing 5% to represent 46% of total revenue. Data revenue reaches USD 1.1 billion, representing 40% of Group revenue.

Chairman of the Board of Directors of Zain Group, Ahmed Al Tahous said, “The Board and management are focused on driving sustainable shareholder value through strong environmental, social and governance (ESG) practices, diligent investments in 4G and 5G network upgrades expansion, and seeking new lucrative business verticals to drive growth.”

“We have recently applied for a digital banking license in Kuwait with Boubyan Bank and other investors, as we are keen of becoming the leading telco-led challenger bank in Kuwait.

We are focused on fostering innovation and building on our success in the fintech space, given the exceptional accomplishments of Tamam in Saudi Arabia, Zain Cash in Iraq and Jordan, as well as MGurush in South Sudan,” added Bader Al-Kharafi.