Zain has announced its Q1 financials.
In the first quarter of 2019, Zain served 50 million customers, for growth of 6% increase year-on-year (Y-o-Y).
Consolidated revenues were KD 404 million (US$1.33 billion) f, up 56% compared to the same period in 2018. EBITDA for the quarter reached KD 178 million (US$586 million), up 111% Y-o-Y. Net income for the quarter reached KD 47 million (US$155 million), up 15% Y-o-Y.
The three-month period was further highlighted by a 77% increase in net income in Zain Iraq, net profit growth of 11% by Zain Kuwait and 55% by Zain Bahrain. Zain Sudan also performed well despite a massive devaluation of Sudan's currency.
Zain board of directors chair Ahmed Al Tahous said: “The impressive first quarter 2019 results were achieved through the board’s and executive management’s focus on implementation of the digital transformation strategy that has seen substantial investments in network upgrades, fiber optics and 5G readiness. These initiatives have been aimed at diversifying income sources primarily from digital-related areas and at the same time improve customer experience. We will continue driving cost optimisation initiatives to improve the efficiency of the operations and seek new lucrative opportunities in driving the business forward and increasing shareholder value.”
Vice-chair and Group CEO Bader Al-Kharafi said: “Given the sweeping technological developments in the ICT sector and challenging regulatory environment, the management teams across all operations are being dynamic in their transformational and digitisation efforts, supported by the Group. This has resulted in sound operational progress and the reporting of robust results in key markets, highlighted by the vastly improving profitability in our home market of Kuwait and even more impressively in our Bahrain, Iraq and Saudi Arabia operations.”
Al-Kharafi added: “Zain Group’s overall growth in many key indicators was underpinned primarily by the strategic consolidation of Zain KSA, combined with its strong performance and the beneficial regulatory changes in Saudi Arabia, which has driven the operation to profitability for three consecutive quarters. It is unfortunate that the unavoidable currency devaluation in Sudan continues to impact our results; however, we draw confidence on this particular issue as we have recently seen the currency appreciate.”