Zain Group announces its consolidated financial results for the third-quarter (Q3) and nine-month periods (9M) ended September 30, 2022. The company added 3.5 million active subscribers to serve a total of 52 million customers, a 7% year- on-year (YoY) growth.
For 9M 2022, Zain Group generated consolidated revenue of KD 1.3 billion (USD 4.2 billion), up 12% year-on-year (YoY), while consolidated EBITDA for the period reached KD 491 million (USD 1.6 billion), up 3% YoY, reflecting a healthy EBITDA margin of 39%. Efficiency and optimization initiatives resulted in consolidated net income increasing 12% YoY, amounting to KD 152 million (USD 497 million). Earnings per share amounted to 35 fils (USD 0.11) for the nine-month period.
In Q3 2022, Zain Group generated combined revenue of KD 441 million (USD 1.4 billion), up an impressive 15% YoY. EBITDA for the quarter reached KD 171 million (USD 555 million), an increase of 2% YoY, reflecting a 39% EBITDA margin. Net income for the three months amounted to KD 54 million (USD 176 million), a 10% increase YoY. Earnings per share for Q3’22 amounted to 13 fils (USD 0.04).
The significant increase in 9M consolidated net income is mainly due to the impressive performance of operations, particularly Kuwait, Saudi Arabia and Sudan. The subsiding of the pandemic and increased economic activity across all markets combined with appealing consumer digital service offerings centered around streaming and gaming, had a positive effect on the results. Furthermore, lucrative ZainTech and B2B monetization initiatives amplified investments made in 4G, 5G and FTTH expansion and upgrades, also drove revenue growth.
These strong financial results underscore the Board and management’s focus on ensuring that investments in new growth opportunities, network upgrades and environmental, social and governance practices enhance shareholder value. We firmly believe that by providing meaningful connectivity that fosters equitable systemic change, we are empowering and improving the socio-economic well-being of the communities, businesses and government bodies we serve.Ahmed Al Tahous, Chairman, Zain Group
This outstanding 9M operational performance is testament to the successful execution of our ‘4Sight’ growth strategy that has firmly financially strengthened the company’s position to fund future opportunities. Our focus on driving efficiencies, synergies and digital transformation across our operations, in tandem with investing in new business verticals and network upgrades, all rooted in sustainability and inclusivity at the core of everything we do, is paying off.
With the global economy witnessing socio-economic challenges on multiple fronts, Zain’s track record of resilience and agility to adapt to a vastly changing environment, has prepared us well to tap into the many lucrative opportunities that may arise.
As we drive the business forward seeking healthy cashflows , mainly through innovation in the consumer digital arena and the lucrative B2B space, o ur primary aims are to be the ICT partner of choice for governments and enterprises across the region and provide our individual customers an exceptional digital lifestyle experience.
Our portfolio optimization strategy is well on track following the successful sale of our passive tower infrastructure in Kuwait, Jordan and soon KSA, with Iraq next in the pipeline. In Jordan, following the granting of a 25-year 5G license, we expect to be live with 5G services in H2′ 2023, a significant milestone in the Kingdom’s rich telecom history, given the socio-economic boost this technology will give to the Jordanian community.
From a technology advancement point of view, another milestone was the deployment of our Nationwide Narrowband-IOT (Internet of Things) network in Kuwait and Bahrain, creating an exciting ecosystem for customers and enterprises.
In Kuwait, the operation continues playing its pivotal and innovative role in support of the country’s Vision 2035, recently highlighted by the launch of the world’s first Voice over 5G (Vo5G); the launching of cloud services in coordination with ZainTech; and successfully Access the cement Network first live trial in the region of Open and Virtual Radio (Open cRAN), firmlying Kuwait on the global ICT map. We look forward to attaining a Digital banking license in 2023 and offering our customers a range of dynamic Fintech services, fulfilling our aspirations of becoming the leading telco-led bank in Kuwait.
The adoption and successful implementation of comprehensive Sustainability and Diversity and Inclusion programs across our footprint have had an enormous positive impact on the work culture, and it was rewarding to be recognized in Forbes magazine global list as the best employer in Kuwait and top ten regionally for the second time.Bader Al-Kharafi, Vice-Chairman and Group CEO, Zain