Zain Group announced its consolidated financial results for the third-quarter (Q3) and nine-month periods (9M) ended September 30, 2021. The company ended the period with a stable customer base of 48.4 million customers.
For 9M 2021, Zain Group generated consolidated revenue of KD 1.1 billion (USD 3.8 billion), down 3% year-on-year (Y-o-Y), while consolidated EBITDA for the period reached KD 478 million (USD 1.6 billion), down 3% Y-o-Y, still reflecting a healthy EBITDA margin of 42%. Efficiency and optimization initiatives resulted in consolidated net income increasing 5% Y-o-Y, amounting to KD 135 million (USD 450 million). Earnings per share amounted to 31 fils (USD 0.10) for the nine-month period.
In Q3 21, Zain Group generated consolidated revenue of KD 385 million (USD 1.3 billion), down 4% Y-o-Y. EBITDA for the quarter reached KD 168 million (USD 557 million), an increase of 3% Y-o-Y, reflecting a 43% EBITDA margin. Net income for the three months amounted to KD 49 million (USD 165 million), a 5% increase Y-o-Y. Earnings per share for Q3’21 amounted to 11 fils (USD 0.04).
Commenting on the 9M performance, the chairman of the board of directors of Zain Group, Ahmed Al Tahous said, “We continue to rollout high quality telecommunications services across our markets in an inclusive manner, empowering and improving the socio-economic well-being of the communities we serve.”
Meanwhile, Zain vice-chairman and Group CEO, Bader Al-Kharafi said, “The operational performance that saw net profit growth over the 9M period, despite the huge impact of unavoidable currency devaluations, is testament to the successful implementation of the ‘4Sight’ strategy. I am extremely proud of the digital transformation achievements and network rollouts our teams have accomplished across our footprint, enabling us to continue in our mission to foster sustainable systemic change and provide meaningful connectivity in offering high-quality and appealing services to our customers.”
Operational review of key markets for the nine months ended 30 September, 2021
Kuwait: Maintaining its market leadership, Zain Group’s flagship operation saw its customer base serve 2.3 million. It remains the Group’s most profitable operation with revenue for 9M 2021 growing 1% and reaching KD 235 million ($779 million), EBITDA grew 9% to reach KD 91 million ($303 million), representing an EBITDA margin of 39%. Net income grew by 2% to reach KD 58 million ($193 million) for 9M 2021, with data revenue accounting for 41% of total revenue, representing 6% growth.
Saudi Arabia: For the 9M 2021, Zain KSA generated revenue of SAR 5.8 billion ($1.6 billion), EBITDA for the period reached SAR 2.3 billion ($616 million), reflecting an EBITDA margin of 40%. Net income for the nine months reached SAR 143 million ($38 million). Data revenue represents 49% of total revenue and customers served stood at 7.5 million. For the 3rd quarter of 2021, Zain KSA revenues increased by 3% to reach $530 million, EBITDA increased by 5% to reach $215 million, with an impressive EBITDA margin of 41%, and net profit stable at $16 million.
Iraq: Zain Iraq’s 9M 2021 revenue reached $574 million and EBITDA amounted to $226 million, reflecting EBITDA margin of 39%. Net income reached $31 million for 9M 2021. The operator served 16.5 million customers maintaining its market leading position.
Sudan: For 9M 2021, Zain Sudan generated revenue of $241 million, with EBITDA amounting to $118 million, reflecting an EBITDA margin of 49%. The operation reported an impressive net profit of $72 million, reflecting a 104% increase in USD terms. Data revenue represented 28% of total revenue, while the operator’s customer base reached 16.4 million, maintaining its market leadership.
Jordan: For 9M 2021, Zain Jordan revenue increased by 4% to $373 million, EBITDA grew by 16% and reached USD 186 million, reflecting a healthy EBITDA margin of 50%, with net income increasing an impressive 23% reaching $69 million. With the ongoing expansion of 4G services across the country, data revenue represented 50% of total revenue. Zain Jordan served 3.7 million customers maintaining its market leading position.
Bahrain: Zain Bahrain generated revenue of $127 million for 9M 2021 (4% growth). EBITDA grew by 4% to reach $44 million, reflecting an EBITDA margin of 34%, while Net income grew by an impressive 18% to reach $12 million, for 9M 2021.