Tuesday 21 September 2021

Zain Bahrain posts 61pc jump in Q2 net profit

MANAMA, July 11, 2021

Zain Bahrain, the leading mobile broadband network operator in the Kingdom, has reported a net profit of BD1.246 million in Q2, reflecting an impressive 61% increase year-on-year from a net profit of BD0.776 million for the same period in 2020. 
Announcing its financial results for the six-month period ending June 30, 2021, Zain said its revenues for the Q2 amounted to BD16.220 million, also an 8.5% increase as compared to BD14.954 million in Q2 2020. 
Its net profit hit BD2.774 million, representing a 28.5% increase Y-o-Y from BD2.158 million for the same period in 2020. Earnings per share grew to 8 fils for the six month in 2021 as compared to 6 fils in 2020 for the same period. 
Zain Bahrain generated revenues of BD32.728 million during the first six months of 2021, an increase of 4.166% Y-o-Y as compared to 31.419 million for the same period in 2020. Operating profit for the six month period in 2021 reached BD3.223 million, a 21.2% increase on the BD 2.658 million recorded in 2020.
Operating profit for the period also saw an impressive 41.3% increase to BD1.491 million, as compared to BD1.054 million recorded in Q2 2020. Its earnings per share for Q2 increased to 3 fils per share as compared to 2 fils per share in Q2 2020. 
The outstanding profit increase was a result of consistent product and service innovation, operational efficiency and distinguished customer experience where Zain Bahrain further expanded its 5G network and invested significantly in accelerated data growth across its mobile and fixed networks. 
Zain Bahrain said its growth momentum continues as operator expands 5G network across the kingdom, including a focus on new housing areas.
During Q2, the operator was also the first to invest heavily into newly developed housing areas of Bahrain, providing customers with much-needed connectivity to support remote schooling and working. 
At a balance sheet level, Zain Bahrain's total equity as at 30 June 2021 amounted to BD76.072 million, up by 0.781% from BD75.482 million for the year ending 31 December, 2020. The value of the company's assets at the end of Q2 2021 stood at BD122.969 million, down 2.2% from BD125.731 million as of 31 December 2020 as a result of reducing its liabilities.
On the impressive results, Zain Bahrain Chairman Shaikh Ahmed bin Ali Al Khalifa said: "Zain Bahrain, like every entity during these challenging times, has had to evolve and respond robustly to changing market conditions."
"The growth in profits we have seen during this period are a testament to our commitment to product innovation, digital transformation, network expansion, customer service and operational efficiencies. As usage has surged, so too has our diverse team’s enthusiasm to enhance our customer experience, and to give back to society, who we are all working hard to keep safe,' he added.
He pointed out that the increased demand from new customers joining Zain is contributing to the overall growth.
"Our newly designed broadband and postpaid packages and services have attracted new customers and we have reported a Y-o-Y increase in customer base. All these remarkable achievements have resulted in a solid revenue and profit increase Y-o-Y," he added.
Shaikh Ahmed said: "In Q2, we focused on the continued expansion of our 4G and 5G infrastructure, and became the first provider to enhance service in more newly-developed areas of the country."
"We offered higher connectivity speeds for our customers by up to six times, whilst continuing to provide free access to Zain’s home broadband customers to essential services such as online learning and affordable options for work-from-home initiatives," he added.
Shaikh Ahmed said: "The growth in revenue and profitability has increased even as we continue to contend with the pandemic. Going forward, Zain Bahrain will continue to invest in its people, its operations and innovation, accelerating its digital transformation cycle."
"We are aware at a business level that true digital transformation in the mobile communication industry could only happen through a holistic network transformation strategy and execution, and this will continue to be our focus for the coming period," he added.-TradeArabia News Service


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