Zain Group 9M 2023 net income up 13% to USD 561 m - Revenues up 11% to reach (USD 4.6 bn)

• Q3 revenue up 10% to ($1.6bn); Q3 net profit up 11% to ($196m)
• Solid performances in Kuwait, Saudi Arabia, Iraq, Jordan and Sudan recorded for the 9M period
• Data revenue grew 8% to reach USD 1.8 billion, representing 39% of consolidated revenue
• Enterprise revenue up 27% for 9M as ZainTECH and local B2B teams target key clients 
• Robust customer and revenue growth in digital operators, KSA’s ‘Yaqoot’, and Iraq’s ‘oodi’ 
• Digital services including Dizlee API platform witness revenue growth of 10% for 9M

Zain Group, a leading provider of innovative technologies and digital lifestyle communications operating across the Middle East and Africa markets, announces its consolidated financial results for the nine-month (9M) and third-quarter (Q3) periods ended 30 September  2023, serving 52 million customers.

Group Key Performance Indicators (USD) for the first nine months (9M) 2023

Consolidated Revenue	USD 4.6 billion
EBITDA	USD 1.7 billion
EBITDA Margin	37%
Net Income	USD 561 million
EPS	USD 0.13

 

For 9M 2023, Zain generated consolidated revenue of USD 4.6 billion, up 11% year-on-year (YoY), while consolidated EBITDA for the period reached (USD 1.7 billion), up 8% YoY, reflecting an EBITDA margin of 37%. Consolidated net income increased 13% YoY, amounting to (USD 561 million). Earnings per share amounted to (USD 0.13) for the nine-month period.

Group Key Performance Indicators (USD) for third-quarter (Q3) 2023

Consolidated Revenue	USD 1.6 billion
EBITDA	USD 594 million
EBITDA Margin	38%
Net Income	USD 196 million
EPS	USD 0.05

In Q3 2023, Zain generated consolidated revenue of (USD 1.6 billion), up 10% YoY. EBITDA for the quarter reached (USD 594 million), an increase of 7% YoY, reflecting a 38% EBITDA margin. Net income for the three months amounted to (USD 196 million), a 11% increase YoY. Earnings per share for Q3 amounted to (USD 0.05).

The robust consolidated results for the 9M 2023 is mainly attributable to the strong performances of all operations; the gains achieved from the sale and leaseback of towers in key markets; successful groupwide cost optimization initiatives and price revamp programs; the monetization and growth of consumer digital and fintech services; as well as ZainTECH and B2B initiatives building on strategic partnerships and exploiting the investments made in ICT entities, 4G, 5G and Fiber-to-the-Home (FTTH) expansion and upgrades.

 

Key Operational Notes for 9M 2023

• The interim cash dividend of (USD 140 million) was distributed in September 2023
• The 9M period highlighted by net income increases of 38% YoY in Zain Kuwait; 234% YoY in Zain Saudi Arabia; 561% YoY in Zain Iraq; 14% YoY in Zain Jordan and 8% YoY in Sudan
• Data revenue grew 8% YoY to reach USD 1.8 billion representing 39% of consolidated revenue
• Zain invested USD 275 million in CAPEX, mainly in FTTH; spectrum fees; 4G and 5G upgrades
• ZainTECH enters agreement to acquire STS, a leading digital transformation solutions provider  
• Digital services including Dizlee API platform witness revenue growth of 10% for 9M
• Digital operators ‘Yaqoot’ in KSA, ‘oodi’ in Iraq record revenue growth of 93% & 275% respectively
• Launch of Thought Leadership Report entitled ‘Building Inclusive Societies Through Connectivity”
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Chairman of the Board of Directors of Zain Group, Mr. Osamah Al Furaih said,

“Our operations have shown great resilience in overcoming many headwinds as the board continues to work closely with management on all facets of the business, including the development of new business verticals in the digital space and vast network upgrades. In parallel, our focus on implementing comprehensive ESG practices is complementing our mission to enhance sustainable shareholder value.” 

 

“We are mindful of the challenges faced by our operation in Sudan with the ongoing social unrest. We are supporting the local management team to safeguard our people and commercial operations to ensure the community stays connected, and hope that the conflict will end soon. Furthermore, through our internal BE WELL mental well-being program, we are supporting our people emotionally impacted by the ongoing regional conflict by providing various resources including professional therapy, creation of a communication platform offering advice and well-being checks from our Mental Health First Aiders team.” 

 

 

Zain Vice-Chairman and Group CEO, Bader Al-Kharafi commented,

“Despite the many socio-economic and competitive challenges across our markets, the impressive 9M financial performance reflects the implementation of our value-creative ‘4Sight’ strategy in propelling efficiencies, digital transformation and revenue growth. The remarkable operational performance of all our key markets is very gratifying and testament to the coherence between the Group and local management teams in driving synergies and growing the business through multiple initiatives.”   

 

“Zain is witnessing the maturing of its ZainTECH and B2B arm, digital operators in KSA and Iraq, fintech operations and digital services across various markets, which are developing to become compelling businesses in their own right, as monetization from these strategic activities is significantly growing.”

“The establishment of ‘Zain Omantel International’ (ZOI), is revolutionizing the telecommunications wholesale landscape serving regional operators, international carriers, and global hyperscalers. The team is innovating and creating new growth opportunities, with Zain and Omantel customers benefiting from quality internet connectivity, voice, roaming, and messaging. We are very enthusiastic of ZOI’s strategic growth roadmap in creating value for all stakeholders.”

“Zain FinTech, our financial services arm agreement with Al Ansari Financial Services sets the stage for an exciting partnership that will leverage the strengths of both companies to drive innovation, harness technologies and transform financial services delivery to cater to our evolving customer needs. We aim to expand our fintech service offerings to advance the region’s digital ecosystem and will continue pushing the boundaries, leveraging on the vast network of strategic partners in each of our markets." 

 Iraq: Zain Iraq’s 9M 2023 revenue grew by 19% to reach USD 713 million and EBITDA grew by 11% to reach USD 268 million, reflecting EBITDA margin of 38%. Net income increased six-fold to reach USD 64 million for 9M 2023 driven by increased revenues. The operator’s customer base stood at 18 million customers, maintaining its market leading position.