In Q3 2022, Zain Group generated consolidated revenue of KD 441 million (USD 1.4 billion), up an impressive 15% Y-o-Y. EBITDA for the quarter reached KD 171 million (USD 555 million), an increase of 2% Y-o-Y, reflecting a 39% EBITDA margin. Net income for the three months amounted to KD 54 million (USD 176 million), a 10% increase Y-o-Y. Earnings per share for Q3’22 amounted to 13 fils (USD 0.04).
The company said its significant increase in 9M consolidated net income is mainly due to the impressive performance of operations, particularly Kuwait, Saudi Arabia and Sudan. The subsiding of the pandemic and increased economic activity across all markets combined with appealing consumer digital service offerings centered around streaming and gaming, had a positive effect on the results. Furthermore, lucrative ZainTech and B2B monetization initiatives amplified investments made in 4G, 5G and FTTH expansion and upgrades, also drove revenue growth.
Key Operational Notes for 9M 2022
- An interim cash dividend of 10 fils, totaling USD140 million was distributed in September 2022
- The 9M 2022 period was highlighted by the 109% Y-o-Y increase in net income at Zain KSA, a 140% net income increase at Zain Sudan and a 5% net income growth at Zain Kuwait
- Data revenue grew 3% to reach USD 1.66 billion representing 40% of consolidated revenue
- The first nine months saw Zain Group invest USD 316 million in CAPEX reflecting 8% of revenue, mainly in Fiber-to-the-Home (FTTH); spectrum fees; 4G upgrades and 5G rollouts
- Zain Jordan agreement with government includes extension of the current spectrum licenses for 10 years and a 25-year 5G license
- Zain KSA expects to finalize the sale of its passive Tower infrastructure to the Kingdom’s Public Investment Fund led consortium for USD 807 million in Q4, 2022
- Zain Bahrain receives approval from the Central Bank for a Fintech license
- Combined, Tamam in Saudi Arabia, Zain Cash in Iraq and Jordan, and M-Gurush in South Sudan increase their customer base by 34% with annual revenue growth of over 231%
- Digital services groupwide witness revenue growth of 47% Y-o-Y, inclusive of the Dizlee (API) platform, which continues its trajectory growth, offering 51 live services and resulting in over 175 million API transactions since launch in mid-2018
- Digital operator ‘Yaqoot’ in KSA saw revenue growth of 129% Y-o-Y
- The evolution of Zain Esports continues through the August 2022 launch of PLAYHERA MENA, a JV between Zain Group, Zain KSA and PLAYHERA. To date, Zain Esports has held 25 major tournaments, with 30,000 participants and acquired over 50 million social media impressions
- Zain joins the UN Global Compact initiative, a leadership platform for the development, implementation, and disclosure of responsible business practices
- Zain ranked best employer in Kuwait, among top-10 companies to work for in region by Forbes
- ZainTech enters agreement to acquire BIOS Middle East, a regional cloud provider and receives two innovative awards from SAMENA Council-MEA Business Technology Achievement Awards.
Chairman of Zain Group, Ahmed Al Tahous said, “These strong financial results underscore the Board and management’s focus on ensuring that investments in new growth opportunities, network upgrades and environmental, social and governance practices enhance shareholder value. We firmly believe that by providing meaningful connectivity that fosters equitable systemic change, we are empowering and improving the socio-economic well-being of the communities, businesses and government bodies we serve.”
Zain Vice-Chairman and Group CEO, Bader Al-Kharafi commented, “This outstanding 9M operational performance is testament to the successful execution of our ‘4Sight’ growth strategy that has firmly strengthened the company’s financial position to fund future opportunities. Our focus on driving efficiencies, synergies and digital transformation across our operations, in tandem with investing in new business verticals and network upgrades, all rooted in sustainability and inclusivity at the core of everything we do, is paying off.”
https://zain.com/en/press-release/9m2022
