Zain Group reports revenues of KWD1.63bn in 2020

24 Feb 2021

Kuwait-based telecoms group Zain has published its consolidated financial results for the twelve months ended 31 December 2020, reporting a 2% increase in revenues year-on-year to KWD1.63 billion (USD5.38 billion), while EBITDA decreased 8% annually to KWD673 million. The company booked a net profit of KWD185 million in the twelve months under review, down 15% y-o-y. Zain highlighted that the COVID-19 pandemic disrupted economic activity due to lockdowns and travel bans across all Zain markets, impacting the group’s revenue by USD417 million. Further, foreign currency translation impact – mainly due to a 16% currency devaluation in Sudan – cost the group USD110 million in revenue, USD50 million in EBITDA and USD16 million in net income. Zain Group invested USD1.4 billion in CAPEX (26% of revenues), predominantly in 5G rollouts in Kuwait and Saudi Arabia, 4G upgrades and new network sites across Iraq and Jordan, expansion of fibre-to-the-home (FTTH) infrastructure and spectrum licence fees.

In operational terms, Zain Group reported a consolidated customer base of 47.8 million at 31 December 2020, down 3.4% y-o-y. In Kuwait subscribers decreased 7.0% y-o-y to 2.6 million, while the Saudi Arabian unit served 7.6 million subscribers (down from 7.0 million in Q4 2019). Zain Sudan’s subscriber base stood at 16.6 million at 30 December 2020, up 4% y-o-y. Zain Iraq, meanwhile, saw its customer base increase 3.2% y-o-y to serve 16.2 million users at end-December 2020, while the user base in Jordan contracted by 2.8% to 3.5 million.

Mr. Bader Nasser Al-Kharafi, Zain Vice-Chairman and Group CEO, commented: ‘The Group’s performance for 2020 reflects the reality of the COVID-19 pandemic’s disruption on economic-social activity and the unavoidable impact it had on the financial results. The Board and management are working closely together in minimising this impact across our footprint with a particular focus on driving efficiencies, cost optimisation and monetising our 4G and 5G networks. Our 4Sight strategy is taking shape, building on our many strengths while seeking new value-creating business verticals that support our vision of becoming a leading ICT and digital lifestyle provider.’

Bahrain, Iraq, Jordan, Kuwait, Saudi Arabia, South Sudan, Sudan, Zain Bahrain, Zain Group, Zain Iraq, Zain Jordan, Zain Kuwait, Zain Saudi Arabia, Zain South Sudan, Zain Sudan