Zain Group, a leading provider of innovative technologies and digital lifestyle communications operating in eight markets across the Middle East and Africa, announced its consolidated financial results for Q2 and six months ended June 30, 2024. Zain served 47.8 million customers at the end Q2 2024, an exceptional 13% increase from Q1 2024, as 5 million customers return to the network, due to the network stabilization efforts being carried out in Sudan.
In Q2 2024, Zain Group generated consolidated revenue of KD 479 million (USD 1.6 billion), up 4% compared to Q2 2023. Normalized EBITDA grew 13% YoY to reach KD 178 million (USD 579 million), reflecting an EBITDA margin of 37%. Normalized net income growth soared 55% to reach KD 52 million (USD 170 million) reflecting an earnings per share of 12 fils. Normalized EBITDA and net income growth for Q2 2024 is arrived at by adjusting the number range claim in Q2 2023.
For H1 2024, Zain Group generated consolidated revenue of KD 945 million (USD 3.1 billion). Normalized EBITDA grew 1% YoY to reach KD 325 million (USD 1.1 billion), reflecting an EBITDA margin of 34%. Normalized net income growth for the first six months was 11% reaching KD 81 million (USD 265 million), reflecting earnings per share of 19 fils (USD 0.06). Normalized EBITDA and net income growth for H1 2024 is arrived at by adjusting the number range claim and Tower transaction gain in H1 2023.
The Board is pleased with the sound financial and operational performance of the company given the exceptional socio-economic and currency challenges that management is having to contend with, particularly in Sudan. We remain resolute in our focus to implement effective environmental, social, and governance (ESG) practices, further seeking and developing multiple new lucrative business verticals, and preparing the company for the next phase of sustainable growth in driving shareholder value.
Mr. Osamah Al Furaih, Chairman, Board of Directors, Zain Group
Given the performance in H1’24, combined with our strong balance sheet and financial solvency, the Board is pleased to declare a fourth consecutive half-year dividend of 10 fils per share, in accordance with our annual minimum dividend policy of 35 fils per share.
The resilient Q2’24 performance that saw a solid 79% net profit increase compared to Q1’24, is a result of our focus on accelerating revenue and customer growth, and implementation of numerous cost optimization and mitigating initiatives across all our operations. This has set the scene for a solid year. It’s unfortunate that the unavoidable currency devaluation in Sudan continues to impact an otherwise impressive operational quarter.
Mr. Bader Al-Kharafi, Vice-Chairman and Group CEO, Zain
We are seeing areas of positivity in Sudan where the persistent turnaround efforts of the team there saw 5 million customers recently return to the network, a remarkable achievement given the exceptional circumstances. Our mitigation efforts that focus on network service availability and customer initiatives are paying off.
