Currency fluctuations hit Zain Group's profits

Year-on-year profits dip by 4.1% in nine months to September 30
Nabeel Bin Salamah said the results for the nine months to September 30 were encouraging.
Nabeel Bin Salamah said the results for the nine months to September 30 were encouraging.

Share

Kuwait’s Zain Group has reported consolidated revenues of KD 974.6 million ($3.5 billion) for the first nine months of the year, a decline of 1.2% compared to the same period in 2011.

The telco, which is present in eight countries in the Middle East and Africa, posted a net profit of KD201.6 million ($722.2 million), down 4.1% on the same period in 2011.

The company’s consolidated EBITDA amounted to KD 437.3 million ($1.57 billion) over the nine month period, a drop of 1.6% compared to the same period in 2011, reflecting a stable EBITDA margin of 44.87 %.

Zain blamed the decline in revenues on currency fluctuations in the nine-month period. The telco said that without the “currency translation impact” it would have reported growth of 1.5% and 0.7% year-on-year in revenues and EBITDA respectively.

Assad Al Banwan, chairman of the board of directors, Zain Group, said: “The group’s overall performance during the nine months to the end of September 2012, has been encouraging. Earlier in the year we identified the difficult economic conditions being faced in many of the markets in which we operate, and despite these adverse conditions, we have been able to produce results that show stability and consolidation year-on-year.

He added: “It should be noted that during this period Zain Group operations came under significant pressure with respect to extreme currency fluctuations in some of the markets in which we operate. These fluctuations alone cost Zain approximately $146 million, but despite this, we were still able to report solid operating results for the period.”

Nabeel Bin Salamah, CEO, Zain Group, said: “Operationally, the group’s results for the nine months to 30 September, 2012 are encouraging given the evidence they offer of Zain’s resilience and positive momentum. The increase in our EBITDA margin is proof that our efficiency drive across the Group is reaping positive results, and we shall look to continue to drive down costs in the periods ahead.”
 

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story