Kuwait’s Zain reports $165m profit for second quarter of 2022

Bader Al-Kharafi, Zain vice-chairman and group CEO. (Supplied)

• Zain served 51.7 million customers at the end of the period, a 7.1 percent increase year on year

LONDON: Zain, a Kuwait-based telecoms company, has reported a net profit of 50 million Kuwaiti dinars ($165 million) for the second quarter of 2022, a 22 percent increase over the same period last year.
According to data provider Refinitiv, the effort came in slightly ahead of analysts’ estimate of 49 million dinars.
Revenue for the quarter increased 14 percent to 421 million dinars, thanks to double-digit growth at its subsidiaries in Saudi Arabia and Sudan.
In total, the telecoms group made a net profit of 98 million dinars in the first half of 2022, up 14 percent year on year, with earnings per share of 23 fils.
“The board and management are focused on driving sustainable shareholder value through strong environmental, social and governance practices, diligent investments in 4G and 5G network upgrades expansion, and seeking new lucrative business verticals to drive growth,” Ahmed Al-Tahou, chairman of Zain Group, said.
“We thank all the government authorities across our markets for their proactivity in supporting the telecom sector as we strive to provide meaningful connectivity to the communities we serve,” he added.
Zain, which operates in seven markets across the Middle East and Africa, served 51.7 million customers at the end of the period, a 7.1 percent increase year on year.
The company’s board has declared a half-year dividend of 10 fils per share.
“The healthy revenue and net income growth across multiple key markets vindicates the strategic investments we have made over recent years in network upgrades and cutting-edge digital platforms,” Bader Al-Kharafi, Zain’s vice chairman and group CEO, said.
“By offering our individual and enterprise customers state-of-the-art technologies and services, we are enhancing our customer and revenue share across our markets.
“The 5G network of our flagship operation in Kuwait is the driving force of the 9 percent increase in customers and generation of multiple streams of profitable government and enterprise revenue, resulting in an 11 percent 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,” he added.
Zain Group, along with Boubyan Bank and other investors, applied for a digital banking license in Kuwait last month, hoping to become the country’s leading telco-led challenger bank.
“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,” Al-Kharafi said.