Kuwait-based Zain Group has recorded a net profit of KD50 million ($165 million) for the second quarter, up 22% over last year, while its revenue surged by 14% to hit KD421 million ($1.4 billion), thanks to double-digit growth at its subsidiaries in Saudi Arabia and Sudan.  

 

A leading telecom innovator in seven markets across the Middle East and Africa, Zain said it has served 51.7 million customers at the end of the period, registering a 7.1% increase year-on-year (Y-o-Y) growth.  

 

Announcing its consolidated financial results for the three-month period ended June 30, Zain said its ebitda for the quarter reached KD166 million ($544 million), up 9% Y-o-Y, reflecting an ebitda margin of 40%. 

 

Its net income for Q2 amounted to KD 50 million ($165 million), up 22% Y-o-Y, reflecting earnings per share of 12 fils (USD 0.04).

 

For the H1 period, Zain Group had generated consolidated revenue of KD829 million ($2.7 billion), an increase of 10% Y-o-Y. Ebitda for the period reached KD320 million ($1.1 billion), up 3% Y-o-Y, reflecting an ebitda margin of 39%. 

 

According to Zain, its net income soared to KD98 million ($321 million), up 14% Y-o-Y, reflecting earnings per share of 23 fils (USD 0.07).  

 

Over the six months, Capex investments focused predominantly on expansion of Fiber-to-the-Home (FTTH) infrastructure; spectrum fees; 4G upgrades; and new network sites across its markets, as well as 5G rollouts in Kuwait, KSA, and Bahrain. 

 

The telcom group said Zain Kuwait had become the first telecom operator globally to launch Vo5G with nationwide coverage and also it has completed first live trial in region for 4G / 5G Open and Cloud Native Radio Access Network (cRAN).

 

ZainTech, the enterprise (B2B) arm of the group, registered strong growth across markets landing key regional clients and new partnerships, with B2B revenues growing 21% Y-o-Y.

 

Lauding the solid results, Group Chairman 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."

 

Impressed with the results, Zain group's board has declared second consecutive interim dividend of 10 fils per share for the first six months.

 

Zain Vice-Chairman and Group CEO  Bader Al-Kharafi expressed delight at the company’s robust financial and operational performance for the first six months of the year, which reassured the board to declare a second consecutive half-year dividend of 10 fils per share. 

 

"Our solid balance sheet and financial solvency is a result of the company's success in the execution of its ‘4Sight’ corporate strategy, which is driving growth, digital transformation, and optimal efficiencies across all operations," he said.  

 

Al Kharafi said: "The healthy revenue and net income growth across multiple key markets vindicates the strategic investments we have made over recent years in network upgrades and cutting-edge digital platforms. By offering our individual and enterprise customers state-of-the-art technologies and services, we are enhancing our customer and revenue share across our markets."

 

"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 a 11% increase for all key financial indicators - revenue, Ebitda and net income," he added.-TradeArabia News Service