Chairman, Ahmed Al Tahous: “Focus on making sure investments in new expansion opportunities, network upgrades and ESG practices value shareholders”
Kuwait: Zain Group, the leading telecom innovator in seven Middle East and Africa markets, announces its consolidated monetary effects for the third quarter (Q3) and nine-month (9-month) periods ended September 30, 2022. The company added 3. 5 million active subscribers to serve a total of 52 million customers, a year-over-year (Y-o-Y) growth of 7%.
Key Group Functionality Signs (KD and USD) for Months (9M) 2022
Consolidated sales
KWD 1. 3 billion – USD 4. 2 billion
EBITDA
KD 491 million – USD 1. 6 billion
EBITDA margin
39%
Net income
KD 152 million – USD 497 million
Pse
35 threads – 0. 11 USD
During the nine months of 2022, the Zain Group generated a consolidated profit of KD 1300 million (USD 4200 million), 12% more than the previous year, while consolidated EBITDA for the constant period reached KD 491 million (USD 1600 million). ), up 3% year-over-year, reflecting a healthy EBITDA margin of 39%. ). Gains consistent with constant percentage were 35 fils ($0. 11) for the constant nine-month period.
Group KPIs (KD and USD) for Q3 2022
Consolidated sales
KD 441 million – USD 1. 4 billion
EBITDA
KD 171 million – USD 555 million
EBITDA margin
39%
Net income
KD million – USD 176 million
Pse
13 threads – USD 0. 04
In the third quarter of 2022, the Zain Group generated consolidated cash inflow of KD 441 million ($1. 4 billion), an impressive year-on-year accumulation of 15%. EBITDA for the quarter KD 171 million (USD 555 million), a building up 2% year-on-year, reflecting an EBITDA margin of 39%. Consistent with the constant percentage were thirteen fils ($0. 04).
The significant accumulation in the consolidated net profit source over nine months is basically due to the impressive functionality of the operations, namely in Kuwait, Saudi Arabia and Sudan. Virtual service offerings aimed at streaming and gaming had a positive effect on results. In addition, ZainTech’s and B2B’s lucrative monetization projects amplified investments in 4G, 5G and FTTH expansion and upgrades, and also drove profit growth.
Key operating notes for 9M 2022
Zain Group Chairman Ahmed Al Tahous said: “These strong monetary effects underscore the Board’s commitment and control to ensure that investments in new expansion opportunities, network upgrades and environmental, social and governance practices decorate shareholder value. connectivity that fosters equitable systemic change, we strengthen and improve the socioeconomic well-being of the communities, businesses and government agencies we serve.
Zain Group Vice President and CEO Bader Al-Kharafi said, “This remarkable 9-month operational functionality is a testament to the successful execution of our 4Sight expansion strategy that has firmly strengthened the company’s monetary position to fund long-term opportunities. The efficiency, synergies and virtual transformation across our operations, along with investment in new lines of business and network upgrades, all rooted in sustainability and inclusion at the core of everything we do, is paying off.
“As the global economy faces demanding socioeconomic situations on the frontlines, Zain’s track record of resilience and agility to adapt to an ever-changing environment has prepared us well to exploit the many lucrative opportunities that are likely to arise. “
“As we advance the business by pursuing healthy money flows, primarily through innovation in the virtual customer realm and in the lucrative B2B space, our primary goals are to be the ICT spouse of choice for governments and businesses in the region and to provide our individual customers with an exceptional virtual lifestyle experience.
“Our portfolio optimization strategy is on track following the successful sale of our passive tower infrastructure in Kuwait, Jordan and soon in Saudi Arabia, with Iraq as the next project. In Jordan, following the granting of a 25-year 5G license, we plan to put 5G into operation in the current part of 2023, a vital milestone in the Kingdom’s rich telecommunications history, given the socio-economic boost this generation will give to the Jordanian community. “
“From a generational advancement perspective, another milestone is the deployment of our nationwide narrowband network-IoT (Internet of Things) in Kuwait and Bahrain, creating an exciting ecosystem for consumers and businesses.
“In Kuwait, the operation continues to play its central, cutting-edge role in supporting the country’s Vision 2035, recently highlighted by the launch of the world’s first voice over 5G (Vo5G); the launch of cloud installations in coordination with ZainTech; and the successful finishing touch of the first live test in the Open and Virtual Radio Access Network (Open cRAN) region, firmly consolidating Kuwait on the global ICT map. We look forward to obtaining a virtual banking license in 2023 and providing our customers with a diversity of dynamic Fintech facilities, assembling our aspirations to the leading telecom operator-led bank in Kuwait.
Al Kharafi concluded: “The adoption and successful implementation of comprehensive sustainability, diversity and inclusion systems across our footprint has had a very positive effect on painting culture, and it was gratifying to be identified on Forbes magazine’s global list as the Best Employer in Kuwait and the 10 most sensible regional for the time being.
Operational review of key contracts for the months ended September 30, 2022
Kuwait: Maintaining its market leadership across all KPIs, Zain Group’s flagship operation has noted that its visitor base grew by 12% to now serve 2. 6 million visitors. Nine-month 2022 earnings increased by 10% to KD 258 million (USD 844 million), higher EBITDA through 8% to KD nine nine million (USD 323 million), representing an EBITDA margin of 38%. 2% and representing 38% of total profits.
Saudi Arabia: For the nine months of 2022, Zain KSA’s cash inflows increased by 15% to SAR 6700 million (USD 1800 million), EBITDA for the era reached SAR 2200 million (USD 598 million), reflecting an EBITDA margin of 34%. Net profit During the nine months, construction increased by 109% to SAR 299 million (USD 80 million). Data revenue accounts for 44% of total cash revenue and the number of consumers served stands at 8. 6 million, an expansion of 15%. The impressive net source of cash inflows is attributed to cash accumulation driven by expansion in B2B, 5G and the return of foreign Umrah and business visitors after the Kingdom eased COVID restrictions.
Iraq: Zain Iraq’s profit in the first nine months of 2022 increased 5% to $601 million and EBITDA increased 6% to $241 million, reflecting an EBITDA margin of 40%. The net source of profit reached $10 million in nine months of 2022. The visitor base grew by 11%, to now serve 18. 4 million visitors, maintaining its leading position in the market.
Sudan: During the nine months of 2022, Zain Sudan generated cash inflows of $33 million (an increase of 41%), with EBITDA of $178 million (an increase of 51%), reflecting an EBITDA margin of 53%. The transaction posted an impressive net profit of $174 million, reflecting a 140% increase in dollar terms. Data cash grew 60% year-on-year and accounted for 32% of total cash, while the operator’s visitor base reached 16. 2 million, maintaining its leading position in the market. The redesign of prices to mitigate currency devaluation, as well as the monetization of knowledge and consumer-focused projects were instrumental in the impressive monetary results.
Jordan: For the nine months of 2022, Zain Jordan’s revenue increased 2% to $382 million, EBITDA reached $170 million, reflecting a healthy EBITDA margin of 44%, with net profit reaching $51 million. With the continued expansion of 4G across the country, knowledge revenue accounted for 50% of total revenue. Zain Jordan served 3. 8 million consumers (4%) while maintaining its leading position in the market. With the recent 10-year extension of 2G, 3G and 4G licenses and the granting of a 25-year 5G license that will be commercially operational in time in 2023, the transaction is well poised for strong monetary performance.
Bahrain: Zain Bahrain generated a profit of USD 134 million for the nine months of 2022 (5% growth). 9M 2022. Driven by its commitment to sustainability, the operation deployed the newest 5G Massive MIMO radio to reduce energy consumption by 15% at Zain 5G’s site; the first telecommunications company to implement this complex solution in the Middle East and Africa.
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About Zain Group:
Zain is a leading telecom operator in the Middle East and Africa, offering cellular voice and insight to 52. 0 million active consumers as of September 30, 2022. With advertising presence in 7 countries, Zain operates in the following countries: Kuwait, Bahrain, Iraq, Jordan, Saudi Arabia, Sudan and South Sudan. In Morocco, Zain owns a 15. 5% stake in INWI through a joint venture. Zain is indexed in Boursa Kuwait (ticker symbol: ZAIN). Introducing the investment network to download the mobile application “Zain Group Investor Relations”. For more information, email info@zain. com or visit: www. zain. com; www. facebook. com/zain; www. twitter. com/zain; www. youtube. com/zain; www. instagram. com/zaingroup; www. linkedin. com/company/zain
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