Zain Group posts robust revenue growth in 1H19 due to Zain Saudi consolidation

1 Aug 2019

Kuwait-based telecoms group Zain has published its consolidated financial results for the six months ended 30 June 2019, reporting a 61% increase in revenues year-on-year to KWD811 million (USD2.7 billion), while EBITDA increased 109% annually to KWD354 million. Zain attributed the positive developments to the consolidation of Zain Saudi Arabia, which resulted in Zain recording an additional USD1.1 billion in revenue and USD506 million in EBITDA, offsetting losses of USD101 million in revenues, USD44 million (EBITDA) and USD15 million (net income) due to 43% currency devaluation in Sudan. The company booked a net profit of KWD97.3 million in the six months under review, up 13% y-o-y, mainly due to growth in net profit in Zain Saudi Arabia (net profit of SAR260 million, up from a net loss of SAR115 million) and Zain Iraq (up 39%).

In operational terms, Zain Group reported a consolidated customer base of 49.2 million at 30 June 2019, up 4% y-o-y. In Kuwait, subscriber numbers remained flat at 2.8 million, while Jordan saw its customer base decrease to 3.7 million (down from 3.8 million). Zain Sudan’s subscriber base stood at 15.1 million at 30 June 2019, up 9% y-o-y. Zain Iraq, meanwhile, served 15.3 million users at end-June 2019, with 600,000 net additions over twelve months.

Mr. Bader Nasser Al-Kharafi, Zain Vice-Chairman and Group CEO, commented: ‘The first six months of 2019 were exceptional as we recorded impressive net income and EBITDA growth in all key operations, namely Kuwait, Saudi Arabia, Iraq, Jordan and Bahrain. We also continue to perform remarkably well in all key financial indicators in local SDG currency terms in Sudan, though this progress is negated by currency devaluations. Overall, these robust set of results reconfirm that our digital transformation programme, efficiency drive and growth strategy is on track in delivering the ambitious financial targets we have set in a bid to exceed all expectations from our stakeholders.’

Kuwait, Zain Group