Zain Group’s FY23: Momentous Year With Strong Operational, Financial Performance

Moreover, key operations in Kuwait, KSA, Iraq and Jordan delivered impressive net profit growth, with Jordan becoming the 4^th Zain operation to offer 5G services. Data revenue also grew 8% to reach USD 2.4 billion, representing 39% of total revenue, while digital services revenue increased by 9% and fintech customer growth hit 40%, with revenue soaring by 195%.

Also Read: Zain Enters Strategic Collaboration to Boost Education Access

The enterprise revenues also surged by 20% as ZainTECH and local B2B teams target strategic clients. Notably, tower sales and leaseback in KSA, Kuwait, Jordan and Iraq created value and efficiencies.

Another important feat is that Zain Group’s brand valuation reached USD 3 billion, up 11% year over year.

Group Key Performance Indicators for the Full-Year 2023

Commenting on the 2023 full year results, the Chairman of the Board of Directors of Zain Group, Osamah Othman Al Furaih said, “It was a momentous year for Zain on multiple levels as the Board worked together with the executive management team on increasing shareholder value by evolving the business and implementing noteworthy ESG initiatives. Our focus on operational efficiency, network upgrades, driving enterprise revenues and the development of new lucrative business verticals were instrumental in achieving these impressive 2023 results.”

Also Read: Zain Completes Inaugural ‘WE SUCCEED’ Program

Key Operational Notes in 2023

Zain Vice-Chairman and Group CEO, Bader Nasser Al-Kharafi commented, “Our Group-wide efforts in monetizing innovative digital services and enterprise solutions on the back of our state-of-the-art networks and technologies, combined with cost optimization initiatives and passive tower infrastructure strategy, are driving strong operational and financial performance on all our KPIs.”

Throughout 2023, Zain Group invested USD 994 million in CapEx mainly on 4G and 5G rollouts, representing 16% of revenue and expanding FTTH infrastructure and spectrum license fees. As a key milestone, Zain KSA launched the world’s first zero-carbon 5G network in the Red Sea.

The agreement with Ooredoo Group and TASC Towers (to create the largest tower company in the MENA region) was valued at USD 2.2 billion with nearly 30,000 towers across six countries. Additionally, Zain Omantel International established a unique PAN Middle Eastern network, complemented by extensive global assets including the Africa-1, PEACE, and Blue-Raman subsea cables.

In 2023, ZainTECH successfully acquired STS, a leading regional digital transformation solutions provider, while Zain Bahrain launched its new fintech brand, ‘Bede,’ to offer microfinance services.

From an ESG perspective, Zain maintained its position as the top-rated company in the region, achieving an A- rating on the 'CDP Score Report–Climate Change 2023'. This places Zain among the global leaders, demonstrating its commitment to adhering to emission reduction guidelines outlined by the Science-Based Targets initiative.

Also Read: Zain Collaborates with GCC Telco Alliance to launch the 'Sustainability Innovation Hub'

Financial KPIs of Key Markets

Kuwait: Maintaining its market leadership, the flagship operation saw its customer base increase by 4% to serve 2.7 million customers. The Group’s most profitable operation saw its full year 2023 revenue grow by 5% Y-o-Y to reach KD 360 million (USD 1.2 billion), with EBITDA increasing by 18% to KD 156 million (USD 509 million), reflecting an EBITDA margin of 43%. For the full year, the operator recorded a net income of KD 104 million (USD 339 million) reflecting a 26% increase. Data revenue represented 37% of total revenue.

Saudi Arabia: The operator generated a revenue of USD 2.6 billion, up 9% Y-o-Y, with EBITDA amounting to USD 794 million, reflecting an EBITDA margin of 30%. Net income for the year soared 131% to reach USD 338 million. With its dynamic 5G network covering 64 cities, data revenue represented 40% of total revenue and customers served stood at 8.9 million, up 3%.

Also Read: Zain KSA Achieves Record Annual Revenue of SAR 9.9 Billion in 2023

Sudan: Despite the ongoing conflict, the operator generated revenue of USD 558 million, up 14%, with EBITDA amounting to USD 269 million, up 7% and reflecting an EBITDA margin of 48%. Net income for the period reached USD 216 million. Data revenue grew by 22%, representing 35% of total revenue, while the operator’s customer base stood at 14.2 million.

Iraq: Revenue reached USD 974 million, up 20%, and EBITDA amounted to USD 375 million, up 16% Y-o-Y, reflecting an EBITDA margin of 39%. Net profit reached USD 88 million compared to USD 15 million last year. The operator’s customer base reached 17.9 million customers.

Also Read: Zain and TASC Towers Finalize Sale and Leaseback of 4,968 Towers in Iraq

Jordan: Zain Jordan’s revenue increased 3% to reach USD 525 million, EBITDA reached USD 217 million, reflecting an EBITDA margin of 41%. Net income for the year increased 10% to reach USD 76 million. With the expansion of 4G and launch of 5G services across the country, data revenue grew 1% representing 50% of total revenue. Zain Jordan’s customer base grew by 3% to reach 3.9 million customers.

Also Read: Nokia to Support Zain Jordan’s Nationwide 5G Drive

Bahrain: The operator generated revenue of USD 192 million, up 7% Y-o-Y. EBITDA increased 2% to reach USD 60 million, reflecting an EBITDA margin of 31%. Net income grew 2% reaching USD 15.4 million, with data revenue growing 6% to represent 47% of total revenue.

Also Read: Zain Bahrain and Ericsson Deliver New 5G Sustainable Network

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