Zain Group, a leading provider of innovative technologies and digital lifestyle communications operating in eight markets across the Middle East and Africa, has delivered solid results for the full year with its consolidated revenue soaring to KD1.9 billion ($6.2 billion), up 10% over the previous year.

 

Announcing its consolidated financial results for the 12-month period ended December 31, 2023, Zain Group said its net profit surged by 10% to hit $701 million, mainly due to its operational efficiency, network upgrades and the development of new lucrative business verticals.

 

Its consolidated ebitda for the period increased by 5% Y-o-Y, to reach KD705 million ($2.3 billion), reflecting an ebitda margin of 37%. 

 

Serving a customer base of 50.6 million globally, Zain Group maintained its market leadership in several prime regions.

 

In Kuwait, the flagship operation saw its customer base increase by 4% to serve 2.7 million customers. The group’s most profitable operation saw its full year 2023 revenue grow by 5% Y-o-Y to reach KD360 million ($1.2 billion), with ebitda increasing by 18% to KD156 million ($509 million), reflecting an ebitda margin of 43%. 

 

For the full year, the operator recorded net income of KD104 million ($339 million) reflecting a 26% increase. Data revenue represented 37% of total revenue.

 

For Saudi Arabia, Zain generated revenue of $2.6 billion up 9% Y-o-Y, with ebitda amounting to $794 million, reflecting an ebitda margin of 30%. 

 

Net income for the year soared 131% to reach $338 million. With its dynamic 5G network covering 54 cities, data revenue represented 40% of total revenue and customers served stood at 8.9 million, up 3%.

 

In the neighbouring Bahrain, Zain generated revenue of $192 million, up 7% Y-o-Y, while the ebitda increased 2% to reach $60 million, thus reflecting an ebitda margin of 31%. 

 

Net income grew 2% to reach $15.4 million, with data revenue growing 6% to represent 47% of total revenue.  

 

Impressed with the results, the Zain Board of Directors had recommended a cash dividend of 25 fils per share for the second half (H2) of 2023.

 

This dividend follows the semi-annual dividend of 10 fils distributed earlier in 2023, totaling 35 fils per share for the year and reflecting a 70% payout ratio, one of the highest among listed entities in the region and in line with the board’s previously committed minimum cash dividend policy of 35 fils in total, for three years that commenced in 2023. 

 

For the fourth quarter of 2023, Zain Group generated consolidated revenue of KD494 million ($1.6 billion), up 8% Y-o-Y. 

 

Ebitda for the quarter amounted to KD174 million ($565 million), reflecting an ebitda margin of 35%. Net income for the period amounted to KD43 million ($140 million), representing earnings per share of 10 fils ($0.03).

 

Throughout 2023, Zain Group had invested $994 million in Capex representing 16% of revenue, mainly on 4G and 5G rollouts, and expansion of FTTH infrastructure and spectrum licence fees.

 

Commenting on the results, Chairman Osamah Al Furaih said: "It was a momentous year for Zain on multiple levels as the Board worked together with the executive management team on increasing shareholder value by evolving the business and implementing noteworthy ESG initiatives. Our focus on operational efficiency, network upgrades, driving enterprise revenues and the development of new lucrative business verticals were instrumental in achieving these 2023 impressive results."

 

"The board is confident of the company’s readiness to exploit the next phase of growth of the numerous technologies and digital services we provide across our footprint. I would like to recognize the government bodies in Kuwait and across our markets for supporting the telecom sector and empowering Zain to provide meaningful connectivity to the communities, businesses, and governments we serve," he noted. 

 

Zain Vice-Chairman and Group CEO Bader Al Kharafi said: "Our Group-wide efforts in monetizing innovative digital services and enterprise solutions on the back of our state-of-the-art networks and technologies, combined with cost optimization initiatives and passive Tower infrastructure strategy, are driving strong operational and financial performance on all our KPIs."

 

"Accordingly, we are in a solid position to recommend a H2 dividend of 25 fils (following the 10 fils earlier in H1) that will result in the second consecutive total annual dividend of 35 fils, reaffirming the commitment we made at the beginning of 2023. This reflects an annual 70% payout ratio, one of the highest in the region providing a strong indication of our healthy balance sheet and financial solvency as the Board and management cooperate to grow the business in a sustainable manner," he added.-TradeArabia News Service