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Zain revenue up 5% thanks to investment in data networks

Zain Group reported revenue of $864 million (+5 percent), customer base of 46.9 million (+2 percent), EBITDA of $281 million (–21 percent) with EBITDA margin of 32.5 percent and net income of $137 million in Q1 2018.
Zain chairman and CEO
The telecom operator said currency devaluation in Sudan cost the company $38 million in revenue, $16 million in EBITDA and $7 million in net income.

Zain Group data revenues (excluding SMS and VAS) increased 10 percent, representing 26 percent of the revenues.

Zain Group CEO Bader Al-Kharafi said: “The data monetization, enterprise (B2B) and smart city initiatives implemented in Kuwait, Saudi Arabia and across other key operations are growing at impressive rates.”

Zain Kuwait reported $320 million (+16 percent) revenue. Data revenues grew 4 percent, representing 29 percent of total revenues.

Zain Iraq posted $275 million (+9 percent) revenue with EBITDA of $96 million (+12 percent) – fuelled by data revenues, growth in enterprise (B2B), and the revamping of its call centers significantly improving customer service.

Zain Sudan, which now serves 13.8 million customers, recorded $85 million (–20 percent) revenue with EBITDA of $33 million (–14 percent). Data revenues formed 16 percent of total revenues, with an annual growth of 41 percent in SDG terms.

Zain Saudi Arabia performance was affected by 17 percent or 1.7 million reduction of its customer base due to exodus of expat community, bio-metric measures and a two-SIM policy for expats.

Zain Saudi Arabia revenue was $450 million (–12 percent) with a net loss of $21 million. The company recorded 14 percent decrease in EBITDA to $152 million, resulting in an EBITDA margin of 34 percent. Data revenues represent 55 percent of total revenues.

Zain Jordan, which serves a customer base of 3.8 million, posted $119 million with EBITDA of $48 million (–18 percent), reflecting an EBITDA margin of 40 percent. Data revenues grew 5 percent, representing 39 percent of total revenues, thanks to 4G push.

Zain Bahrain generated revenue of $44 million with EBITDA of $10 million, reflecting an EBITDA margin of 22 percent while net income increased 120 percent to $2.9 million. Revamped 4G network resulted into growth in data revenues that represent 45 percent of overall revenues.

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