Zain Group Reports Strong Financial Results and Strategic Initiatives for 9M 2023

Zain Group, a prominent provider of innovative technologies and digital communications in the Middle East and Africa, has announced robust financial results for the nine-month (9M) and third-quarter (Q3) periods ending September 30, 2023, serving a customer base of 52 million.
Zain 5G businessFinancial Highlights for 9M 2023:

Consolidated Revenue: Zain reported consolidated revenue of KD 1.4 billion (USD 4.6 billion), marking an impressive 11 percent year-on-year (YoY) increase.

EBITDA: Consolidated EBITDA for the period reached KD 530 million (USD 1.7 billion), up 8 percent YoY, with an EBITDA margin of 37 percent.

Net Income: Consolidated net income saw a significant 13 percent YoY increase, totaling KD 172 million (USD 561 million). Earnings per share for the period amounted to 40 fils (USD 0.13).

Q3 2023 Highlights:

Consolidated Revenue: Zain generated KD 485 million (USD 1.6 billion) in consolidated revenue for Q3 2023, reflecting a robust 10 percent YoY growth.

EBITDA: Q3 EBITDA reached KD 183 million (USD 594 million), a 7 percent YoY increase, with a commendable EBITDA margin of 38 percent.

Net Income: Net income for Q3 amounted to KD 60 million (USD 196 million), marking an 11 percent YoY increase. Earnings per share for Q3 were 14 fils (USD 0.05).

Operational Highlights for 9M 2023:

Dividend Distribution: Zain distributed an interim cash dividend of 10 fils, totaling KD 43.3 million (USD 140 million), in September 2023.

Market Performance:

Zain Kuwait, the group’s flagship operation, maintained market leadership with a 2 percent revenue growth, reaching KD 264 million (USD 859 million).

Zain Saudi Arabia recorded a 10 percent revenue growth, reaching USD 2.0 billion, driven by B2B, Yaqoot, TAMAM, and 5G revenues.

Zain Iraq’s revenue increased by 19 percent, reaching USD 713 million, with a net income growth of six-fold.

Zain Sudan generated USD 435 million in revenue, reflecting a 28 percent increase, and maintained market leadership with a customer base of 15.6 million.

Strategic Initiatives:

Zain invested USD 275 million in Capex (capital expenditure), focusing on FTTH, spectrum fees, and 4G/5G upgrades.

Exclusive negotiations with Ooredoo Group and TASC Towers Holding to combine approximately 30,000 telecom tower assets into a jointly owned independent tower company.

ZainTECH acquired STS, a leading digital transformation solutions provider.

Zain KSA launched the world’s first zero-emission 5G network in The Red Sea powered entirely by renewable energy.