Zain Group Q1’ 2025 Net Profit soars 66% YoY to reach USD 157 million, Revenue grows 15% YoY to reach USD 1.74 billion
- Chairman, Mr. Osamah Al Furaih: “The Board’s focus will be on driving the ‘4WARD-Progress with Purpose’ five-year corporate strategy across all our operations”
- Vice-Chairman & CEO, Bader Al-Kharafi: “A remarkable first quarter with solid operational performance and revenue growth across key markets, bodes well for rest of year in driving shareholder value”
- Strong revenue growth in Sudan (+112%), Iraq (+13%), Bahrain (+8%), Jordan (+7%) and KSA (+6%)
- Group consolidated EBITDA up 15% to USD 554 million (KD 171 million)
- Customer base soars 20% to reach 50.7m, driven by the restoration of the network in Sudan and improved market access in Iraq
- Data revenue grew 6% to reach USD 633 million, representing 36% of total revenues
- New growth verticals delivered USD 191 million in revenue, representing a 185% YoY increase
- Fintech services witness consolidated revenue growth of 30% across multiple markets
- Digital services revenue grew across key markets, driven by an increase in Kuwait and Sudan
- Enterprise revenue saw robust growth of 16%, driven by ZainTECH and Opco B2B teams
- Zain Omantel International (ZOI) reports exceptional revenue growth of 371% during Q1’ 2025
- Zain brand valuation up 14.5% YoY, to reach a milestone of USD 3.5 billion, the highest in Kuwait
Zain Group, a leading provider of innovative ICT and digital lifestyle communications operating in eight markets across the Middle East and Africa, announces its consolidated financial results for the first quarter ended March 31, 2025, with the customer base increasing 20% to reach 50.7 million customers.
Group Key Performance Indicators (KD and USD) for Q1’ 2025
| Total Managed Active Customers
|
50.7 million |
| Revenue
|
USD 1.74 billion
|
| EBITDA
|
USD 554 million
|
| EBITDA Margin
|
32%
|
| Net Income
|
USD 157 million
|
| EPS
|
USD 0.04
|
Zain Group recorded impressive revenue growth of 15% to reach USD 1.74 billion for Q1’ 2025. EBITDA for the quarter jumped 15% to reach USD 554 million, reflecting an EBITDA margin of 32%. Net income for the quarter soared 66% to reach USD 157 million, reflecting an Earnings Per Share of (USD 0.04).
Key Operational Notes for Q1 2025
Data revenue grew 6% to reach USD 633 million, representing 36% of the Group’s overall revenue
During the quarter, Zain Group invested USD 242 million in CAPEX, reflecting 14% of revenues
Kuwait, KSA, Bahrain, and Jordan continue to grow their 5G customer base
Fintech services (Bede in Kuwait and Bahrain; Tamam in KSA and Zain Cash) witnessed revenue growth of 30%, transaction value increased 25% to reach USD 1.7 billion
Consolidated enterprise revenue witnessed 16% growth as ZainTECH and B2B teams in key markets secured multiple deals with businesses and governments, ZainTECH revenue soared 184% YoY
Groupwide Digital services witnessed revenue growth of 2%, driven by an increase in Kuwait and Sudan
Zain Omantel International (ZOI), a wholesale carrier, achieved exceptional revenue growth of 371% YoY
Customer base and revenue continue to grow for Zain’s digital operator, Yaqoot in KSA and Oodi in Iraq
Introduction of Global M2M offering to accelerate the proliferation of connected devices across the region
Zain brand valuation up 14.5% YoY, to reach a milestone of USD 3.5 billion, the highest in Kuwait
Mr. Osamah Al Furaih, Chairman of the Board said, “With the introduction of the ‘4WARD-Progress with Purpose’ five-year corporate strategy, the Board will work closely with Executive Management in driving continuity, acceleration, collaboration and digital innovation across all our operations to take Zain to new heights and increase shareholder value. We look forward to expanding our ESG initiatives in providing meaningful connectivity and continuing our positive relationships with regulatory bodies and all stakeholders as we implement ‘4WARD’ to the benefit of customers, communities, and government bodies we proudly serve.”
Mr. Bader Al-Kharafi, Zain Vice-Chairman and Group CEO, commented, “It was a remarkable first quarter with solid operational performance and revenue growth across key markets, and this bodes well for the rest of the year as we expect this trajectory to continue, driving shareholder value. Our focus on investing in network upgrades, new technologies, and monetizing our 5G and ICT services for both our individual and enterprise customers, coupled with accelerating the growth of several new business verticals, have positively impacted our financial metrics on all levels. So are our operational synergies, cost optimization and digital transformation initiatives in offering customers better services.”
“Our key operations in Kuwait, KSA, Jordan, and Bahrain performed well in line with expectations, despite strong competition and other local challenges. Notably, in Sudan the network restoration efforts have reconnected over 5.8 million customers leading to exceptional operational performance, despite the ongoing geo-political issues. The World Bank is optimistic about Sudan’s economic outlook, provided the current conflict eases, which supports our confidence for continued improvement in the coming quarters.”
“The success of our recent AGM, which achieved a distinct quorum of 79.2%, witnessed the approval of the Board’s recommendation to renew the minimum annual cash dividend policy for another three years, extending it through to 2028. This marks a clear reaffirmation of Zain’s long-term commitment to sustainable and consistent shareholder returns, as well as confidence in business’s prospects.”
“Our performance in this quarter was significantly boosted by the expanding impact of our growth verticals, ZOI wholesale, ZainTECH, Dizlee API entertainment platform, and Fintech services across our footprint which when combined delivered USD 191 million in revenue in the first quarter alone, representing a noteworthy 185% YoY growth from USD 67 million in Q1’2024, and now contributing 11% to Group total revenue.”
“As the leading 5G provider across the region in regard to footprint, our 5G customer base, both individuals and enterprises in Kuwait, KSA, Bahrain, and Jordan are truly benefiting from the appealing digital technologies and services we offer in enhancing their data experience, and this is driving both revenue and customer growth.”
“Our fintech's growth in revenue and customer base, witnessed increase in transaction volumes across Kuwait, KSA, Jordan, and Bahrain. Recently, in Sudan we launched the Bede brand, a key milestone in our regional rollout. In Kuwait, we look forward to receiving Central Bank approvals to expand our fintech offerings to cater for consumers and businesses. We will continue to foster Fintech, expecting this growth trajectory to continue.”
“Zain Omantel International (ZOI) exceptional performance was a result of major capacity deals in Data and Connectivity, a significant growth in voice traffic volumes, as well as expansion in partnerships and international agreements.”
“Likewise, ZainTECH’s revenue growth of 184% YoY also witnessed several important milestones this quarter. It launched a new Cybersecurity Governance, Risk, and Compliance (GRC) service, helping organizations stay compliant and secure. In Saudi Arabia, ZainTECH was granted a commercial license, allowing it to formalize its regional HQ there, and expand its presence and operations. The entity also joined the NVIDIA Partner Network as a Reseller, one of the few in the region, to bring advanced AI solutions to businesses across its markets.”
“The introduction of our Global M2M offering is a strategic move, capitalizing on our strategic footprint and superior connectivity to position Zain as the regional partner of choice. This service addresses the significant challenges faced by Original Equipment Manufacturers (OEMs) operating in or looking to operate in the region. By providing a unified solution that ensures compliance and simplifies connectivity across our extensive network, Zain is empowering the connection of global manufacturers to the Middle East. This will boost the pace of digital transformation of enterprises and governments, driving socio-economic growth across the region.”
Al-Kharafi concluded, “We are confident that the recently launched ‘4WARD-Progress with Purpose’ will unleash Zain’s full potential in transforming from a Telco to a purpose driven TechCo conglomerate providing ‘Better Lives and Lasting Connections’. ‘4WARD’ will provide the necessary impetus for Zain’s continued relevance and impact on shaping societies and providing meaningful connectivity and drive the Zain brand value to new heights.”
Financial KPIs of key markets for the first quarter (Q1) ended March 31, 2025
Iraq: For Q1 2025, revenue grew 13% to reach USD 286 million, and EBITDA increased 13% to reach USD 105 million, reflecting an EBITDA margin of 37%. Net income for the quarter soared 73% to reach USD 26 million. The customer base increased 11% to 20.7 million, reflecting a market-leading position, driven by the investment in Tower expansion and monetizing new B2C and B2B products and services.