Zain Group’s revenues, net income slump in 9M17 on currency devaluations

30 Oct 2017

Kuwait-based telecoms giant Zain Group has published its consolidated financial results for the nine months ended 30 September 2017, reporting revenues of KWD767 million (USD2.5 billion), down 7% year-on-year, while EBITDA decreased 19% annually to reach KWD316 million. The company booked a net profit of KWD122 million in the nine months under review, largely unchanged from the KWD124 million reported in the corresponding period of 2016. Zain disclosed that it incurred foreign currency losses amounting to USD76 million in net income and USD441 million in revenue for the nine-month period to 30 September, predominantly due to a 61% currency devaluation in Sudan. Excluding the currency translation impact, revenues would have grown by 8% y-o-y, while net income would have increased by 16% annually.

In operational terms, Zain Group reported a consolidated customer base of 45.3 million at 30 September 2017, unchanged y-o-y. In Kuwait subscriber numbers reached 2.5 million, while Jordan and Sudan saw customer base increases to 4.2 million (up 1% y-o-y) and 12.9 million (up 4%), respectively. Zain Saudi Arabia’s subscriber base, meanwhile, decreased to 8.3 million in Q3 2017 as a result of the government’s biometric identification project (which reduced the number of pre-paid SIMs to two per ID), while Zain Iraq served 13.7 million users at that date, up 16% y-o-y.

Kuwait, Zain Group