Zain Group, a leading provider of innovative technologies and digital lifestyle communications operating in seven markets across the Middle East and Africa, has registered solid growth for the second quarter with its revenue surging by 10% to hit KD461 million ($1.5 billion), while its net profit for the period grew 14% to KD57 million ($187 million). 

 

Announcing its consolidated financial results for the three-month period ended June 30, 2023, Zain said the net income for the quarter amounted to KD57 million ($187 million), up 14% YoY, reflecting earnings per share of 13 fils ($0.04). Its ebitda for the quarter reached KD182 million ($594 million), up 10% YoY, reflecting an ebitda margin of 40%.

 

During this period, Zain Group had received a first-ever cash dividend of $42 million from Zain KSA. 

 

Zain also served 52.7 million customers at the end of the period, a 2% increase year-on-year (YoY).  

 

For the first six months of 2023 (H1), Zain Group generated consolidated revenue of KD930 million ($3.03 billion), an increase of 12% YoY. Ebitda for the period reached KD348 million ($1.1 billion), up 9% YoY, reflecting an ebitda margin of 37%. 

 

Net income amounted to KD112 million ($364 million), up 14% YoY, reflecting earnings per share of 26 fils ($0.08).  

 

According to Zain, the data revenue grew 9% to represent 39% of total group revenue for H1 2023. Enterprise revenue surged by 27% for H1 as ZainTech and local B2B teams secure key clients and enter strategic partnerships.

 

Digital services including Dizlee API platform too witnessed revenue growth of 15% for H1.

 

Commenting on Q2 and H1 2023 results, Group Chairman Osamah Al Furaih said: "This exceptional performance is a result of the Board and management’s focus on driving sustainable shareholder value through effective environmental, social and governance (ESG) practices, network upgrades expansion, and growing new lucrative business verticals with a focus on providing customers with an exceptional telecom experience."

 

"Our conducive relationships with the management of Omantel and government authorities across our markets is supporting us in our mission to reap the benefits of digital transformation as we drive systemic change and provide meaningful connectivity to the communities we serve and beyond," he stated. 

 

Impressed by the results, the board has for the third consecutive year declared an interim dividend of 10 fils per share for first six months of 2023 that will be payable to entitled shareholders on September 14, 2023.

 

"The $42 million cash dividend received from Zain KSA for its 2022 financial year, is significant in that apart from being the operator’s first ever-cash dividend distribution to shareholders, it is indicative of the successful achievement of Zain KSA’s transformational turnaround in recent years whereby it reported record revenues and profits in 2022, and likewise for the first six-months of 2023. We are very optimistic of the growth potential of Zain KSA in creating shareholder value and playing a key role in Saudi Vision 2030," he added.  

 

During the period, Zain and TASC Towers entered exclusive negotiations with Ooredoo to create a joint independent tower entity comprising 30,000 towers.

 

"Our pioneering tower sale and leaseback strategy is making substantial progress and creating shareholder value on multiple fronts. We are quietly confident that our recently announced deal of Zain and TASC Towers entering exclusive negotiations with Ooredoo to create a jointly owned independent tower entity comprising of 30,000 towers, will materialize and create enormous value for all our respective stakeholders," stated Al Furaih. 

 

"We are thankful of Ooredoo’s board and management for their trust and genuine spirit of partnership to take these exclusive discussions forward," he added.

 

Al Furaih said the group was very excited by the potential opportunities that the strategic establishment of ‘Zain Omantel International’ (ZOI), a first-of-its-kind joint venture will be bringing as it will revolutionize the telecommunications wholesale landscape. 

 

"It will become the Middle East’s premier wholesale powerhouse serving regional operators, international carriers, and global hyperscalers. The partnership will create new opportunities for growth and innovation, with Zain and Omantel customers benefiting from quality internet connectivity, voice, roaming, and messaging. ZOI will manage all international wholesale requirements of Zain and Omantel operations in eight countries, serving over 55 million customers, and benefitting both entities on financial, commercial and operational levels," he added.-TradeArabia News Service