Zain profit soars 12%

TDT | Manama                       

The Daily Tribune – www.newsofbahrain.com    

Zain Group, a leading telecom innovator in seven markets across the Middle East and Africa, reported profits for the third quarter and nine-month that grew 10% and 12%, respectively, from a year ago, thanks to “impressive performance of operations, particularly Kuwait, Saudi Arabia and Sudan.”

Zain said that the subsiding of the pandemic and increased economic activity across all markets combined with appealing consumer digital service offerings centred around streaming and gaming had a positive effect on the results.

Also driving the revenue were ZainTech and B2B monetization initiatives which amplified investments made in 4G, 5G and FTTH expansion and upgrades. The company also announced adding 3.5 million active subscribers to serve a total of 52 million customers, a 7% yearon-year (Y-o-Y) growth.

Nine-month results

For 9M 2022, Zain Group generated consolidated revenue of KD 1.3 billion (USD 4.2 bn), up 12% year-on-year (Y-o-Y), while consolidated EBITDA reached KD 491 million (USD 1.6 bn), up 3% Y-o-Y, reflecting a 39% EBITDA margin. Net income rose 12% Y-o-Y, amounting to KD 152 m (USD 497 m).

Earnings per share amounted to 35 fils (USD 0.11). In Bahrain: Zain Bahrain generated revenue of USD 134 m for 9M 2022 (5% growth). EBITDA grew 2% to reach USD 44.3 million, reflecting an EBITDA margin of 33%, while Net income grew 1% to reach USD 12 million, for 9M in 2022.

Third quarter results

In Q3 2022, Zain Group generated consolidated revenue of KD 441 m (USD 1.4 bn), up 15% Y-o-Y. EBITDA reached KD 171 m (USD 555 m), an increase of 2% Y-o-Y, reflecting a 39% EBITDA margin. Net income amounted to KD 54 m (USD 176 m), a 10% increase Y-o-Y.

Earnings per share were 13 fils (USD 0.04). Chairman of Zain Group, Ahmed Al Tahous, said, “These strong financial results underscore the Board and management’s focus on ensuring that investments in new growth opportunities, network upgrades and environmental, social and governance practices enhance shareholder value.

We firmly believe that by providing meaningful connectivity that fosters equitable systemic change, we are empowering and improving the socio-economic well-being of the communities, businesses and government bodies we serve.” Zain Vice- Chairman and Group CEO, Bader Al-Kharafi, said, “Our portfolio optimization strategy is well on track following the successful sale of our passive tower infrastructure in Kuwait, Jordan and soon KSA, with Iraq next in the pipeline.

In Jordan, following the granting of a 25-year 5G license, we expect to be live with 5G services in H2’ 2023, a significant milestone in the Kingdom’s rich telecom history, given the socio-economic boost this technology will give to the Jordanian community.”c