Zain Group 2022 revenue rises 14%, profit grows 6% to reach US$640m

TDT | Manama                                        

The Daily Tribune – www.newsofbahrain.com   

Growth in customer base, cost optimization, digital innovation, and data monetization initiatives have helped Zain Group post higher revenues in the fourth quarter and full year 2022.

The 7% customer growth of 3.5 million; and consolidated data revenue growth of 5% to reach USD 2.2 billion, representing 40% of the Group’s revenue for the year.

A leading mobile telecom innovator in seven markets across the Middle East and Africa, Zain ended the year with a customer base of 52.4 million.

Cash dividend

Zain’s board also recommended a cash dividend of 25 fils per share for the second half (H2) of 2022.

This follows the semi-annual dividend of 10 fils distributed earlier in 2022, totaling 35 fils per share for the year and reflecting a 78% payout ratio, one of the highest of listed entities in the region.

The board also recommended a minimum semi-annual and annual cash dividend policy of 35 fils in total, for the forthcoming three years.

Total recommended cash dividends of 25 fils for H2, 2022 and 35 fils each year for the next three years, will total 130 fils in cash dividends.

This expected distribution based on the current share price of Zain as of 13 March 2023, will reflect an average annual yield of approximately 8% for entitled shareholders for the three-year period.

Q4, FY22 results

For the fourth quarter (Q4) of 2022, Zain Group generated consolidated revenue of KD 458 m (USD 1.5 bn), up 20% Y-o-Y.

EBITDA for the quarter amounted to KD 182 m (USD 591 m), up 22% Y-o-Y, reflecting an EBITDA margin of 40%.

Net income amounted to KD 44 m (USD 143 m), representing earnings per share of 10 fils (USD 0.03).

For the full-year 2022, Zain Group generated consolidated revenue of KD 1.7 billion (USD 5.6 bn), a year-on-year (Y-o-Y) increase of 14%.

Consolidated EBITDA for the period increased by 7% Y-o-Y, to reach KD 673 million (USD 2.2 bn), reflecting an EBITDA margin of 39%.

Consolidated net income reached KD 196 m (USD 640 m), up 6% Y-o-Y and reflecting earnings per share of 45 fils (USD 0.15).

Zain KSA also completed sale of 8,069 towers for USD 807 million to the Public Investment Fund, to transfer at least 3,000 towers in January 2023, remaining towers to be transferred over 18 months Chairman of the Board of Directors of Zain Group, Ahmed Al Tahous said it was a challenging year where the Board and management focused “on operational efficiency, ESG initiatives, and the development of lucrative business verticals to drive shareholder value among many other key initiatives.”

Zain Vice- Chairman and Group CEO, Bader Al-Kharafi commented, “The impressive 52% growth of our Group-wide digital services revenue reflects the many data monetisation initiatives maximizing our 5G, FTTH and 4G networks.

Looking ahead, Al-Kharafi added that Zain is primed to further execute on its “4Sight strategy, building on and maximizing the many opportunities within the core telecom business while diversifying into new lucrative business verticals in the ICT, digital infrastructure, fintech, and digital services arenas.”