Zain Group posts small rise in profits for 2011

Currency fluctuations cost telco an estimated $124m in 2011
Zain posted a 1% rise in net profits for 2011.
Zain posted a 1% rise in net profits for 2011.

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Zain Group posted consolidated revenues of $4.79 billion for the full year 2011, an increase of 2% compared to the previous year.

Consolidated net income reached $1.033 billion in 2011, a 1% increase compared to 2010, excluding capital gain of $2.6 billion from the sale of Zain Africa.

The company’s consolidated EBITDA increased by 1% for the same period to reach $2.17 billion, reflecting an EBITDA margin of 45.4%.
Zain’s customer base grew by 8% to 40.2 million active customers across all of its operations. It added around three million new active customers in 2011.

The earnings per share for the 12 months of 2011, stood at $ 0.27, compared to $0.26 in 2010. Additionally, shareholders equity stood at $7.92 billion. Zain’s board of directors recommended a cash dividend of $0.23per share subject to the company’s annual general assembly and the regulatory approvals.

Asaad Al-Banwan, chairman, Zain Group, said that the company had managed to maintain growth despite a tough economic climate. “In light of the difficult financial conditions, many markets in the region are still suffering because of the global financial crisis,” Al Banwan said. “However, the group was able to maintain growth levels in its main financial indicators.”

However, Al-Banwan added that Zain’s profitability was “severely affected” owing to currency exchange rate fluctuations in some of its main markets, which cost the Group $124 million in 2011.

 

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