Kuwait’s Zain Group has posted solid results for the first quarter of the year, with net profit increasing by 40% compared to the same period last year to reach KWD 69.9 million ($251.1 million).
The company recorded consolidated revenues of KWD 324.4 million, an increase of 1% compared to the same period in Q1 2010.
Zain’s EBITDA reached KWD 147.7 million, up 10% on the previous year.
However, despite the impressive rise in Q1 profit, the results fell short of analysts’ expectations. According to a poll from Reuters, analysts had expected Zain to post a quarterly profit of KWD 75.3 million dinars.
Nabeel Bin Salamah, CEO, Zain Group, attributed the results to an “operational efficiency drive” implemented during the past 12 months.
“Additionally we are reaping the rewards of our extensive investments in network technology upgrades across all our country operations, and we expect such progress to continue for the foreseeable future,” he said.
Zain experienced particularly strong growth in Iraq, where subscriber numbers increased by 14% to reach 12 million people, helping the operation to increase revenues by 11% in the quarter, compared with the same period last year.
Meanwhile, Zain Sudan’s subscriber base rose 21% to reach 10.65 million customers in the quarter, while revenues increased by 13%.