Zain Group has posted a net income of $269 million (KD 80 million) during its first half results, a declined outcome compared to a $407 million (KD 115 million) in 2014 during the same period.
The company said that foreign currency translation impacted the results due to the appreciation of the USD. It costed the company $57 million on revenue, $26 million on EBITDA and $13 million on net income, said the operator in a statement.
For the first six months of 2015, Zain Group generated consolidated revenues of $1.9 billion (KD 562 million) down 15% Year-on-Year (Y-o-Y).
Moreover, the telco said that “the continued social instability in Iraq and heightened levels of competition severely impacted Zain Iraq’s and consequently the group’s overall key financial metrics”.
Commenting on the results, the chairman of the board of directors of Zain Group, Asaad Al Banwan, said: “Zain Group continues to deal with the diverse market and social challenges that it faces to the best of its ability, especially in conflict areas where circumstances beyond our control have impacted our overall key financial results for the six month period.”
Zain Group CEO, Scott Gegenheimer, added: “Although our digital transformation and efficiency drive efforts are well on track across many of our operations, we are disappointed by the severe impact that the increased social instability and intense competition in Iraq is having on our overall financial results for the year to date. Nevertheless we are encouraged to see growth of our customer base in key markets, with both Saudi Arabia and Sudan witnessing healthy growth in all of their key financial indicators.”
The company highlighted that Zain Saudi Arabia saw an increased customer base by 25% to serve 11.3 million customers, with net losses narrowing by 29% y-o-y. It added that Zain Sudan revenues increased 6% and net income 31% (in USD terms) y-o-y.