Zain Group reports flat revenues in 3Q13

12 Nov 2013

Kuwaiti telecoms company Zain Group has published its financial results for the three months ended 30 September 2013, reporting flat year-on-year revenues of KWD313.0 million (USD1.1 billion) when compared to the corresponding period in 2012, while data revenues displayed healthy growth of 22%. EBITDA for the three month period under review reached KWD134.0 million, while the company booked a net profit of KWD53.0 million in 3Q13, a 12% decrease on the KWD59.7 million reported twelve months earlier. The negative results were party explained by foreign exchange currency losses predominantly in the Republic of Sudan, which reduced the group’s revenue by USD41.0 million and EBITDA by USD17.0 million.

In operational terms, Zain Group reported 7% growth in its consolidated customer base, which reached 44.3 million in 3Q13, equivalent to three million net additions in the twelve months to 30 September 2013. In Kuwait subscribers increased by 11% y-o-y to 2.4 million by 3Q13, while Bahrain reported 29% growth in its customer base over the same period. Iraq saw its customer base grow by 8% to 14.5 million, as the local unit’s networks expanded to cover Northern Iraq. Meanwhile, Saudi Arabia contributed eight million users to the total subscriber base, equivalent to 19% y-o-y growth. Elsewhere, Sudan reported a total of twelve million users, while customers in South Sudan increased by 21% to reach 767,000.

Zain Group’s chairman of the board of directors Asaad Al Banwan commented: ‘Zain’s ability to maintain stable quarter-to-quarter revenues and healthy EBITDA margins is an achievement, reflecting the company’s ability to deal competently with the rise in competition and the other challenges it faces.’

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