Zain Group posts 26pc jump in Q3 net income
(11/8/2018 7:26:00 AM)
Zain Group, a leading mobile telecom services operator with a major presence in the Middle East and Africa (MEA) region, reported a net income of KD51 million ($167 million) for the third quarter, up 26 per cent over the same period in 2017.
The company ended the period serving 47.8 million customers, reflecting a 5 per cent year-on-year (Y-o-Y) increase, said a statement from the company. Zain Group generated consolidated revenues of KD403 million ($1.3 billion) in the third-quarter of 2018, up 55 per cent Y-o-Y in KD terms, it said.
Ebitda for the quarter reached KD155 million ($512 million), an increase of 48 per cent Y-o-Y, reflecting a 38 per cent Ebitda margin. For the first nine months of 2018 ended on September 30, Zain Group generated consolidated revenues of KD906 million ($3 billion), up 18 per cent Y-o-Y in KD terms; while consolidated Ebitda for the period reached KD324 million ($1.1 billion), up 3 per cent Y-o-Y, reflecting a healthy Ebitda margin of 36 per cent, it added.
Consolidated net income amounted to KD137 million ($454 million), reflecting a 12 per cent Y-o-Y increase. Earnings per share amounted to 32 Fils ($0.10) for the nine-month period.
Zain Group Chairman Ahmed Al Tahous said: "These promising results highlight the group's success in implementing strategic plans, which are dynamic in meeting with the sweeping changes in the ICT sector.”
Bader Nasser Al Kharafi, vice chairman and group chief executive officer, Zain, said: “The third-quarter witnessed numerous milestones that included the value accretive consolidation of Zain Saudi Arabia, the ongoing revival of Zain Iraq on multiple levels, and the robust revenue growth in our data monetisation programmes, enterprise (B2B), cloud services, as well as smart city initiatives in key markets, particularly Kuwait and Saudi Arabia.”
“We are strategically transforming ourselves from being a pure telecom provider to a digital services provider. We draw confidence from rollout of numerous customer centric digital services in key markets that contributed to the impressive growth in data revenues for the nine-month period that now accounts for 31 per cent of overall service revenues,” he said.
“We will continue to foster this area of the business, both in individual and enterprise terms,” he added. Al Kharafi said: “It is our focus on innovation and seeking new revenue streams, upgrading our networks to be 5G ready and driving efficiencies that allows us to consistently deliver strong operational results, maintain our leadership position in most markets and enhancing shareholder value.”
As a pioneering aspect of the company’s digital transformation journey, Al Kharafi commented on the progress being made with the establishment of the Zain Innovation Center (ZINC) in Kuwait and Jordan.
Al Kharafi continued: “The introduction of ZINC is another step forward by Zain aligning to its brand values and Corporate Sustainability objectives, as well as the company’s active investment in delivering on its strategic digital lifestyle aspirations.”
“The incubator themed co-working hub is playing an instrumental role in bolstering youth entrepreneurship in both country’s startup ecosystems. We are attracting major global pioneers and mentors from across the digital value chain to make appearances at ZINC and inspire budding entrepreneurs through presentations and workshops and much more,” he added.