Zain Group, a prominent tech and communications provider across the Middle East and Africa, has disclosed its Q2 and six-month financial results ending June 30, 2023. During this period, Zain served a total of 52.7 million customers, marking a 2% year-on-year increase.
Notably, the company achieved a substantial 10% revenue growth for Q2 2023, reaching KD 461 million (approximately USD 1.5 billion). In addition to this financial success, Zain Group received a cash dividend of USD 42 million from Zain KSA, demonstrating its robust financial position.
Mr. Osamah Al Furaih, the Chairman of Zain Group, emphasized the collaboration between the board and management to enhance shareholder value through effective environmental, social, and governance (ESG) practices, operational efficiencies, and expansion into new business verticals.
Bader Al-Kharafi, the VC & Group CEO, highlighted the solid growth in Enterprise, Digital, and Fintech revenues, which bolstered the company’s financial performance. Data revenue also showcased a notable growth of 9%, contributing to 39% of the Total Group Revenue for H1 2023.
The Enterprise sector witnessed a remarkable upswing of 27% in revenue, attributed to ZainTech and local B2B teams securing key clients and strategic partnerships. Additionally, digital services, including the Dizlee API platform, experienced a 15% revenue growth for the same period.
Zain’s focus on Fintech and Digital Operator entities yielded positive outcomes, with healthy customer and revenue growth. The establishment of Zain Omantel International (ZOI) is poised to revolutionize the international telecommunications wholesale landscape.
Furthermore, Zain’s collaboration with TASC Towers Holding and Ooredoo for a joint independent tower entity comprising 30,000 towers signifies a significant development in the company’s expansion strategy.
Zain’s unwavering commitment to sustainability is underscored by the publication of its 12th sustainability report titled ‘An Inclusive Transition for Future Generations.’
In continuation of its shareholder-oriented approach, Zain Group declared an interim dividend of 10 fils per share for the first six months of 2023, payable on September 14, 2023. The company has also secured legal victories, such as winning the number range fees litigation in Kuwait and receiving a SAR 158 million (USD 42 million) cash dividend from Zain KSA.
Furthermore, Zain’s strategic investments and expansion into 5G markets, combined with acquisitions and partnerships, have positioned the company for impressive growth across multiple sectors, ranging from Fintech to cloud gaming platforms.