Zain Group Q2, 2022 Net Profit Soars 22% to Reach $165 Million
Zain Group, a leading telecommunications innovator operating in seven markets across the Middle East and Africa, announced its consolidated financial results for the six months to June 30, 2022.
Zain served 51.7 million customers at the end of the period, a 7.1% increase year-on-year (Y-o-Y). For the first six months of 2022 (H1), Zain Group generated consolidated revenue of $2.7 billion, an increase of 10% Y-o-Y.
EBITDA for the period reached $1.1 billion, up 3% Y-o-Y, reflecting an EBITDA margin of 39%. Net income amounted to $321 million, up 14% Y-o-Y, reflecting earnings per share of $0.07.
Commenting on Q2 and H1 2022 results, Chairman of the Board of Directors of Zain Group, Ahmed Al Tahous said, “The Group is focused on driving sustainable shareholder value through strong ESG practices, and diligent investments in 4G and 5G network upgrades expansion.”
Group CEO Bader Al-Kharafi said: “We are delighted by the company’s robust financial and operational performance for the first six months of the year, which reassured the Board to declare a second consecutive half-year dividend of 10 fils per share.
“The 5G network of our flagship operation in Kuwait is the driving force of the 9% increase in customers and generation of multiple streams of profitable government and enterprise revenue, resulting in a 11% increase for all key financial indicators - revenue, EBITDA and net income.
“Similarly, the 5G network and appealing data monetization initiatives in both Saudi Arabia and Bahrain are driving growth on multiple levels.
"In Iraq, Jordan and Sudan, the operations are monetizing their 4G networks profitably and we look forward to launching 5G services in those markets in the future, upon receipt of regulatory approvals.
“We have recently applied for a digital banking license in Kuwait with Boubyan Bank and other investors, as we are keen of becoming the leading telco-led challenger bank in Kuwait.
"We are focused on fostering innovation and building on our success in the fintech space, given the exceptional accomplishments of Tamam in Saudi Arabia, Zain Cash in Iraq and Jordan, as well as MGurush in South Sudan.
“Our all-digital-only operators ‘Yaqoot’ in KSA and ‘oodi’ in Iraq both continue to deliver healthy growth, offering a simple mobile experience for customers all through an app.
“Moreover, our enterprise solutions arm ZainTech has gained enormous traction to date, establishing the groundwork for exponential profitable growth. We aim to be the digital partner of choice for governments and enterprises across our markets.”