Zain Group reported consolidated revenue of KD 1.2 billion (USD 3.9 billion) for the first nine months of 2020, down 2% Y-o-Y, while consolidated EBITDA for the period reached KD 502 million (USD 1.6 billion), down 7% Y-o-Y, reflecting a healthy EBITDA margin of 42%. Consolidated net income amounted to KD 132 million (USD 429 million), reflecting a 14% Y-o-Y decrease. Earnings per share amounted to 30 fils (USD 0.10) for the nine-month period. For 9M 2020, foreign currency translation impact, predominantly due to the 14% currency devaluation in Sudan from an average of 46 at 9M 2019 to 53.7 at 9M 2020 (SDG / USD), cost the Group USD 78 million in revenue, USD 36 million in EBITDA and USD 9 million in net income.
Zain highlighted e notable 68% Y-o-Y increase in net income at Zain Iraq and healthy 28% revenue growth in USD terms at Zain Sudan.
Mr. Bader Nasser Al-Kharafi, Zain Vice-Chairman and Group CEO commented, “The telecom sector is not immune to the current pandemic facing the global community that will continue to play havoc across all aspects of socio-economic life for the foreseeable future. Nevertheless, we continue our resolve and commitment to ensuring meaningful connectivity and implementing more digitalization initiatives to better serve businesses, governments, and societies, aiming to lessen the impact of COVID19 on society.”
Operational review of key markets for the nine months ended 30 September, 2020
- Kuwait: Maintaining its market leadership, Zain Group’s flagship operation saw its customer base serve 2.6 million. It remains the Group’s most profitable operation with revenue for 9M 2020 reaching KD 236 million (USD 770 million), EBITDA reaching KD 85 million (USD 277 million), representing an EBITDA margin of 36%. Net income reached KD 58 million (USD 189 million) for 9M 2020, with data revenue accounting for 39% of total revenue.
- Saudi Arabia: For the 9M 2020, Zain KSA generated revenue of SAR 5.9 billion (USD 1.6 billion), EBITDA for the period reached SAR 2.6 billion (USD 695 million), reflecting an EBITDA margin of 45%. Net income for the nine months reached SAR 224 million (USD 60 million). Data revenue represents 51% of total revenue and customers served stood at 7.0 million.
- Iraq: Zain Iraq’s 9M 2020 revenue reached USD 708 million and EBITDA amounted to USD 285 million, reflecting EBITDA margin of 40%. The operation reported an impressive net profit of USD 61 million for 9M 2020. The operator served 15.7 million customers maintaining its market leading position.
- Sudan: For 9M 2020, Zain Sudan generated revenue of SDG 14.9 billion (USD 278 million), with EBITDA amounting to SDG 6.5 billion (USD 121 million), reflecting an EBITDA margin of 44%. Net income for the period reached SDG 1.9 billion (USD 36 million). Data revenue represented 25% of total revenue, while the operator’s customer base reached 16.0 million, maintaining its market leadership.
- Jordan: For 9M 2020, Zain Jordan revenue reached USD 359 million, EBITDA reached USD 160 million, reflecting an EBITDA margin of 44%, with net income reaching USD 56 million. With the ongoing expansion of 4G services across the country, data revenue represented 46% of total revenue. Zain Jordan served 3.5 million customers maintaining its market leading position.
- Bahrain: Zain Bahrain generated revenue of USD 123 million for 9M 2020. EBITDA for the period amounted to USD 42 million, reflecting an EBITDA margin of 34%. Net income amounted to USD 10 million.