Zain Group, a leading provider of innovative technologies and digital lifestyle communications operating in eight markets across the Middle East and Africa, has recorded solid results for the first nine months, with its consolidated net income surging 13% to hit KD172 million ($561 million).

 

Announcing its consolidated financial results for nine-month period ended September 30, 2023, Zain Group said its  revenue for the period soared to KD1.4 billion ($4.6 billion), up 11% year-on-year (YoY), while its ebitda for the period reached KD530 million ($1.7 billion), up 8% YoY, reflecting an ebitda margin of 37%. Earnings per share amounted to 40 fils ($0.13) for the nine-month period.

 

According to Zain, the robust consolidated results for the 9M 2023 was mainly due to the strong performances of all operations; the gains achieved from the sale and leaseback of towers in key markets; successful groupwide cost optimization initiatives and price revamp programmes; the monetization and growth of consumer digital and fintech services; as well as ZainTech and B2B initiatives building on strategic partnerships and exploiting the investments made in ICT entities, 4G, 5G and Fiber-to-the-Home (FTTH) expansion and upgrades.

 

The 9M period witnessed net income growth of 38% YoY in Zain Kuwait; 234% YoY in Zain Saudi Arabia; 561% YoY in Zain Iraq; 14% YoY in Zain Jordan and 8% YoY in Sudan.

 

Also the data revenue grew 8% YoY to reach $1.8 billion representing 39% of consolidated revenue, it stated.

 

On the third quarter results, the regional telco major said its net income for the three months hit KD60 million ($196 million), up 11% over last year, while its earnings per share amounted to 14 fils ($0.05).

 

For the three-month period ended September 30, 2023, Zain generated a consolidated revenue of KD485 million ($1.6 billion), up 10% YoY. Ebitda for the quarter reached KD183 million ($594 million), up 7% YoY, reflecting a 38% ebitda margin. 

 

On the solid performance, Zain Group Chairman Osamah Al Furaih said: "Our operations have shown great resilience in overcoming many headwinds as the board continues to work closely with management on all facets of the business, including the development of new business verticals in the digital space and vast network upgrades."

 

"In parallel, our focus on implementing comprehensive ESG practices is complementing our mission to enhance sustainable shareholder value," stated Al Furaih. 

 

"On the back of these robust results combined with our strong balance sheet and financial solvency, and in accordance with our declared 35 fils per share minimum dividend policy for three years starting 2023, on September 14, we distributed 10 fils per share as interim dividends for the third consecutive year to shareholders. This amounted to KD43.3 million ($140 million)," he said.

 

"With distinct merit, we recognize the various government authorities in Kuwait and across our markets for creating a conducive environment that supports the telecom sector and empowers Zain to provide meaningful connectivity and drive systemic change across the communities, businesses, and governments we serve," he added.

 

Zain Vice-Chairman and Group CEO Bader Al Kharafi said: "Despite the many socio-economic and competitive challenges across our markets, the impressive 9M financial performance reflects the implementation of our value-creative ‘4Sight’ strategy in propelling efficiencies, digital transformation and revenue growth."

 

"The remarkable operational performance of all our key markets is very gratifying and testament to the coherence between the Group and local management teams in driving synergies and growing the business through multiple initiatives," he stated.   

 

Al Kharafi pointed out that Zain was witnessing the maturing of its ZainTECH and B2B arm, digital operators in KSA and Iraq, fintech operations and digital services across various markets, which are developing to become compelling businesses in their own right, as monetization from these strategic activities is significantly growing.

 

"In Kuwait, we are very optimistic of the potential of marketing partnership with Red Bull Mobile, bringing together Zain’s superior telecom expertise with the adventurous world of Red Bull. Targeting the youth, we are offering appealing options for prepaid voice and internet services. We will foster this partnership and our other digital operators in KSA (Yaqoot) and Iraq (oodi), as we continue to stay ahead of the digital curve, offering the latest innovative technologies and services to customers," he added.-TradeArabia News Service