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Mohannad Al-Kharafi and Bader Al-Kharafi

Zain Group H1 profit stays stable at $270m

Kuwait City, August 6, 2017

Zain Group, a leading mobile telecommunications provider with operations in eight markets across the Middle East and Africa, recorded a stable net income of KD82 million ($270 million) for the first six months of 2017.

The company ended the period serving 45.2 million customers, it said.

Zain Group generated a consolidated revenue of KD508 million ($1.67 billion) down 8 per cent year-on-year (Y-o-Y) in KD terms for H1 2017. The group’s consolidated EBITDA for the period reached KD212 million ($695 million), down 17 per cent Y-o-Y, reflecting an EBITDA margin of 41.7 per cent.

Earnings per share for the half-year stood at 21 fils ($0.07).

For the first six months of 2017, foreign currency translation impact, predominantly due to the 61 per cent currency devaluation in Sudan cost the company $305 million in revenue, $131 million in EBITDA and $58 million in net income, Zain said.

Excluding this currency translation impact, Y-o-Y revenues and net income would have grown by 8 per cent and 21 per cent respectively for H1, 2017, it added.

In Q2 2017, Zain Group recorded consolidated revenues of KD261 million ($860 million), down 5 per cent compared to the same period in the previous year. EBITDA for the quarter reached KD104 million ($344 million), down 21 per cent Y-o-Y in KD terms, reflecting an EBITDA margin of 40 per cent. Net income for the quarter amounted to KD44 million ($145 million), down 2 per cent Y-o-Y in KD terms reflecting earnings per share of 11 fils ($0.04).

For the second quarter of 2017, foreign currency translation impact, predominantly due to the currency devaluation in Sudan cost the company $157 million in revenue, $62 million in EBITDA and $25 million in net income.

Excluding the above-mentioned currency translation impact, Y-o-Y revenues and net income would have grown by 12 per cent and 15 per cent, respectively for Q2, 2017, Zain said.

Zain Group chairman Mohannad Al-Kharafi said: "The company’s performance in the first half has been satisfactory given the various operational and forex challenges we face across our footprint. It is our focus on innovation, customer service, and the driving of efficiencies that allows us to consistently deliver strong operational results and maintain our leadership position in the majority of our markets. The Board is working closely with management to continually evaluate new business and value-creating opportunities."

Bader Nasser Al-Kharafi, Zain Vice-Chairman and Group CEO, commented, "The first six-months of 2017 produced some defining positive developments such as the progress being achieved through the turnaround program in Saudi Arabia and robust growth in our data monetisation, Enterprise (B2B), and smart city initiatives in several key markets.” –TradeArabia News Service
 




Tags: Telecom | Kuwait | profit | Zain Group |

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