Zain Group posts a 5% increase in net profit in 1H21

15 Jul 2021

Kuwait-based telecoms group Zain has published its consolidated financial results for the six months ended 30 June 2021, reporting a 3% decrease in revenues year-on-year to KWD750 million (USD2.5 billion), while EBITDA decreased 6% annually to KWD310 million. The company booked a net profit of KWD86 million in the six months under review, up 5% y-o-y, with net income for the second quarter of 2021 increasing by 17% y-o-y (KWD41 million).

Further, foreign currency translation impact – mainly due to currency devaluations in Sudan and Iraq – cost the group USD378 million in revenue and USD233 million in EBITDA. Zain Group invested USD491 million in CAPEX (20% of revenues), predominantly in expansion of fibre-to-the-home (FTTH) infrastructure, spectrum licence fees, 4G upgrades and new network sites across its markets, and 5G rollouts in Kuwait, Saudi Arabia and Bahrain.

In operational terms, Zain Group reported a consolidated customer base of 48.3 million at 30 June 2021. In Kuwait subscribers decreased 4% y-o-y to 2.4 million, while the Saudi Arabian unit served 7.4 million subscribers (up 4% y-o-y). Zain Sudan’s subscriber base stood at 17 million at 30 June 2021, up 8% y-o-y. Zain Iraq, meanwhile, saw its customer base increase 7% y-o-y to serve 16.1 million users at mid-2021, while the user base in Jordan reached 3.5 million (3.4 million in 2Q20).

Mr. Bader Nasser Al-Kharafi, Zain Vice-Chairman and Group CEO, commented: ‘The robust growth witnessed during Q2 2021 reaffirms the success of the ‘4Sight’ strategy and digital transformation set forth by the Board and executive management to invest heavily and focus on monetising our 4G, FTTH and 5G networks, while seeking new business verticals and revenue streams. Our excellent performance is even more satisfying when one considers the unavoidable currency devaluations in Iraq and Sudan, which had considerable impact on the financials.’

Kuwait, Zain Group