Zain increases its quarterly net profit by 6% to $ 156 million

Zain Group (listed on the Kuwait Stock Exchange under the symbol: ZAIN) announced that its quarterly financial results showed strong growth in the level of its key financial indicators for the first quarter of the current financial year, as the group recorded its quarterly net increased. profit by 6% to reach approximately 47 million dinars ($ 156 million), compared to 45 million dinars ($ 147 million) for the same period in 2021, with earnings per share of 11 fils.

Zain said in a press release that it increased its consolidated quarterly revenue for the first quarter by 7% to 408 million dinars ($ 1.35 billion), compared to a total revenue of 382 million dinars ($ 1.26 billion) for the same period in 2021.

Zain, the leader in digital innovation in the Middle East and African markets, indicated that EBITDA amounted to 154 million dinars ($ 507 million), compared to 158 million dinars ($ 523 million) for the same period in 2021. EBITDA margin of 38%.

The group revealed the growth of its customer base by 5%, which rose to about 50.9 million customers, and attributed this growth to the great momentum of its operations in the Saudi and Iraqi markets, while the revenue from data services for the group’s operations recorded 536. million, representing 40% of total consolidated revenue.

The group stated that its major financial indicators were affected by the conversion of foreign currencies, as this was mainly due to the depreciation of the currency in Sudan from an average of (271 Sudanese pounds / dollar) during the first quarter of 2021 to an average (483 Sudanese pounds / dollar) during the first quarter of 2022, which cost the group $ 120 million in consolidated revenue, and $ 80 million in EBITDA.

Ahmed Al-Tahous, Chairman of the Board of Directors of Zain Group, said: “Zain Group is looking for profitable opportunities in new growth sectors as it is more willing to invest in the next phase of growth in the ICT sector. Development and modernization of networks and expansion of digital services.

Zain Group Vice President and CEO Bader Nasser Al-Kharafi said: “Our operations have seen strong growth over this period, thanks to the successful implementation of our business strategy and the expansion of our digital infrastructure, which has positively impacted our key financial impact. . indicators. ”

Al-Kharafi explained: “The strong performance of our operations, especially in Kuwait and Saudi Arabia, where net profit grew by 22% and 97% respectively, is due to the growth of 5G network clients and the expansion of the B2B business and Zain Sudan, which saw a strong increase in its quarterly net profit by 156%, are attributed to its success in gaining more customers for its 4G network.

Al-Kharafi said: “Our continuous focus on providing the best customer experience on our networks always drives us to inject more investment into capital expenditure as we expand $ 74 million during the first quarter in expanding infrastructure projects, network upgrades (4th and 5th) invested. generation), and the launch of These investments helped us gain 2.3 million new customers at the level of individuals and institutions, where the customer base increased by about 5%, the majority of which came from the growth of Zain- customer base Saudi Arabia with 17%, and Zain Iraq with 9%.

Al-Kharafi added: “In view of the increasing activities of internet use, electronic banking, the proliferation of social networks and digital government services, the communications and information technology industry has become the main driver of economic growth and has become more influential in the promoting economic diversification. “

He said: “These developments have opened new horizons for the growth of our business, as the group has benefited from these radical transformations by achieving tremendous growth in the projects and business sector (B2B Solutions) with an increase of 19%, as it focused on lucrative growth opportunities in this business-oriented sector. And companies are moving towards the use of information technology, as the increasing dependence on information technology from various sectors, which in turn has called on companies and business institutions to adapt to these developments, to manage their projects in a modern way in order to improve the quality of services and improve the customer experience. ”

He revealed that the group is driving its business towards more digital transformation initiatives and expansion in the era of cloud services, as it aims to be the preferred digital partner for governments and business institutions in the field of cloud computing, providing cloud solutions in infrastructure development . , and help them build a sustainable diversified economy.

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