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Zain 1H11 group revenues rise 2%; net income up 17%

1 Aug 2011

Kuwait-based telecoms group Zain has reported consolidated revenues of KWD659.4 million (USD2.4 billion) for the six months ended 30 June 2011. This figure represents an increase of 2% compared to the same period one year earlier. Meanwhile, the company’s consolidated EBITDA reached KWD293.1 million during the period, a 6% improvement on the figure generated during 1H10. Elsewhere, net income for the first six months of 2011 rose 17%, to reach KWD140.2 million. The Zain group has described the results as ‘gratifying’ in light of currency fluctuations which saw the firm’s net profit impacted by around USD75 million.

In operational terms, Zain reports that customers across its network have increased by 16% year-on-year, to reach 39.6 million by 30 June 2011, equivalent to around 5.4 million net new additions. Growth predominantly came from Zain Saudi Arabia – whose subscriber base grew 32% to 9.1 million customers – and Zain Sudan which saw its subscriber base increase 24% to reach 11.4 million customers by end-June. Domestic unit Zain Kuwait increased its customer base by 7% to break the two million-subscriber mark, whilst Zain Jordan witnessed growth of 5.5%, taking its customer base to 2.7 million. Zain Sudan now serves 11.4 million customers (up 24% year-on-year), whilst Zain Iraq remains the group’s largest operator in terms of subscribers; the Iraqi unit’s customer base grew 5.2% to 12.3 million by 30 June. Zain claims to be the market leader by subscribers in five of its seven Middle East operations.

Asaad Al-Banwan, chairman of Zain’s Board of Directors commented: ‘Despite intense competition across all our operations, the continual growth in all key financial indicators justify the many prudent decisions recently adopted by the board and the executive management. The company has re-engineered itself on many levels, focusing on maximising shareholders’ value and providing customers a wonderful mobile experience’.

Kuwait, Zain Group

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