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Zain Bahrain reports 3.1% rise in annual net profit to BD 5.572 million 

Zain Bahrain (BSE: ZAINBH), a telecommunications industry innovator in the Kingdom, announced its financial results for the fourth quarter (Q4 2021) and full year ended 31 December 2021.

For Q4 2021, Zain Bahrain reported a net profit of BD 1.185 million, compared to BD 1.699 million for the same period in the previous year, a difference of 30%. Earnings per share fell to 3 fils from 5 fils. Revenue, meanwhile, stood at BD 16.765 million, representing a 6.5% increase from BD 15.739 million. Operating profit for the three-month period reached BD 1.403 million, down 27.5% from BD 1.926 million in Q4 2020.
Meanwhile, the company reported a 3.1% increase in net profits to BD 5.572 million for the year ended 31 December 2021, up from BD 5.405 in the previous year. Earnings per share held steady at 15 fils with revenues amounting to BD 64.784 million, a 4.5% jump from BD 61.992 million in 2020. Operating profits, meanwhile, saw a 1.7% rise to BD 6.45 million, compared to BD 6.34 million.

At the balance sheet level, Zain Bahrain's total shareholders' equity as at 31 December 2021 amounted to BD 78.87 million, up by 4.5% from BD 75.482 million at the end of 2020. The value of the company's assets stood at BD 131.077 million, a 4.3% increase from BD 125.732 million in 2020. Zain Bahrain's Board of Directors is recommending distributing annual dividends to shareholders representing 8% of the company's paid-up capital, equivalent to 8 fils per share, subject to the Annual General Meeting approval.

The positive annual results were largely attributed to Zain's significant infrastructure and state of the art technology investments during the year, which drove an expansion in its offerings to customers. Zain Bahrain became the first operator to provide enhanced mobile and broadband network connectivity in newly developed housing areas, including Salman Town, Khalifa City, and Ramli, as well as newly developed neighborhoods in Hidd and Lawzi. The operator continued to innovate its fixed and mobile network services, offering some of the most competitive packages available. All these investments are expected to accelerate sales significantly in the coming months and years, further increasing Zain Bahrain's competitiveness in the market.
Commenting on the results, Zain Bahrain Chairman, His Excellency Shaikh Ahmed bin Ali Al Khalifa said, "As a committed partner in the Kingdom's growth, Zain Bahrain's continued development of its infrastructure ensures that its telecommunications services remain among the most advanced in the world. Our 2021 results benefited from market-leading mobile and broadband solutions for individual, small business, and enterprise clients which could not have been possible without these long-term investments. We were the first network provider to reach customers in several newly developing housing areas in Bahrain, offering high connectivity speeds, whilst continuing to provide home broadband customers free access to essential services such as online learning and affordable work-from-home options."

"Even as we continue to deal with the uncertainty of the pandemic, our revenues and customer base have continued to grow with demand for communications services remaining at an all-time high. We recognize the importance of mobile telecommunications networks in keeping businesses running, education uninterrupted, and lives connected, and we remain committed to making our services as accessible as possible."

Shaikh Ahmed continued: "Investing in the nation's youth remains one of our priorities. We saw record participation in our three Zain Youth Empowerment Programs, which are designed to equip young Bahrainis with the skills to succeed professionally in a rapidly changing jobs market. We also continued to support the Kingdom's vibrant startup ecosystem."

"2021 saw us formalize our Sustainability and Inclusivity functions, focusing on a culture of inclusion and sustainable business. In line with our commitment to the United Nations' Sustainable Development Goals, we broadened the reach of our E-Waste Recycling Campaign through partnerships with the Supreme Council for the Environment, the Ministry of Education, and other entities."

Shaikh Ahmed concluded: "Our focus for the coming year will be on a comprehensive strategy to enable and drive digital transformation across the Kingdom, supported by our commitment to product innovation, network expansion, customer service, and operational efficiencies."

Zain Bahrain's full financial statements and results announcement press release are available on the Bahrain Bourse website, www.bahrainbourse.com.

Zain Bahrain's other key achievements in 2021 included:

Investments in Network and Customer Experience:

• Expansion of the network to cover a bigger foot print across the kingdom, with a focus on newly developed areas and enhanced indoor coverage, and enhancing the customer experience through the significant expansion of advanced 5G services.
• Partnering with Etisalat Group, STC, Mobily, and Du, from Emirates Integrated Telecommunications Company (EITC), to push forward the implementation of Open Radio Access Network (Open RAN) solutions to drive innovation for the ICT sector across the Middle East.
• Upgrading of broadband connectivity speeds by up to six times to bring greater connectivity to the Kingdom and respond to increasing demand during the pandemic.
• In collaboration with Ericsson, Zain Bahrain completed trials of Narrow Band Internet of Things (NB-IoT) technology to support Bahrain in achieving its National Telecommunication Plan (NTP) - 5 Machine to Machine (M2M) aspirations.
• Opening of a new Zain shop at Bahrain International Airport's (BIA) new Passenger Terminal.

Product and Services:

• Enhanced customer facing applications (app, Zbot, eshop, and more) with further AI and experience features to provide comprehensive services to customers after scoring a record 96% of customer digital self service interactions.
• Launch of ZainTech, a one-stop shop offering digital solutions and transformation such as IoT, Big Data, AI, and emerging technology services to enterprises and governments across the region, the first of its kind in MENA.
• Capitalizing on the establishment of Zain Ventures and investment in the fast-growing FinTech innovators Pipe and Swvl to support their growth across Zain's regional footprint and beyond.
• Introducing Apple Pay to allow cash-free, contactless smartphone payments in Bahrain.

• Boosted mobile and home broadband plans that offer numerous benefits to customers – including Sim Sharing and free OSN subscriptions.
• Launched the latest next-gen devices to enhance customer experience with free mobile insurance and extra data allowances.
• Launch of 'Wiyana', an umbrella for postpaid plans offering a range of benefits to ensure customers stay connected by paying as little as BD 7/month while receiving up to 50% additional data.

Youth:

• Zain Bahrain continues to be the Key Sponsor for the Bahrain Basketball Federation's 13th season.
• In support of the Kingdom's start-up ecosystem, hosting of the 8^th edition of Zainnovate in partnership with Alkeri Partners, a Bahrain-based digital start-up foundry, and Oqal Angel Investors Network, the first Angel investor community in Saudi Arabia, covering Bahrain.
• Partnering with the Rotary Club of Adliya (RCA) to virtually host the 3^rd edition of the '7ewar 3.0 Forum' youth initiative, to generate awareness amongst Bahraini youth of generational differences at the workplace. 

Keeping our customers safe and connected:

• Zain Bahrain provides all students using its home broadband services with free access to select educational platforms, including Google Classroom, Google Hangout, Microsoft Teams, University of Bahrain Black Board, and eduNET.BH.
• Further investment in the 'Be Safe' initiative, enabling customers to utilize all of Zain Bahrain's digital channels to complete their transactions from the safety of their homes. Virtual channels include the Zain app, zBot (interactive live chat), the E-shop portal www.eshop.bh.zain.com, and 10 Zain Smart Branches. 

Community and Social Responsibility:

• Partnership with Bahrain Deaf Society to make Zain services more accessible to all. The Society also taught sign language to Zain Bahrain employees.
• Signed a cooperation agreement with Bahrain Society for Training & Development (BSTD) to provide internships to young Bahraini women aged between 20–24.
• Signed an MOU with Nasser Vocational Training Center to exchange knowledge and explore research and innovation opportunities.
• Internet safety social media campaign 'Internet Monsters' to raise awareness of child safety online.
• Partnering with Rotary Club of Salmaniya on an e-waste recycling campaign, in line with Zain Bahrain's commitment to the United Nations' SDG 11 for Sustainable Cities and Communities and SDG 12 for Responsible Consumption and Production.
• e-Waste School Competition in association with the Supreme Council for Environment and the Ministry of Education where schools collectively accumulated 10.5 tons of e-Waste.
• Successful completion of the Girls for Tech initiative where 1,000 Bahraini girls aged 8–14 years were trained under the STEM program.
• Continuing to support the Supreme Council for Women's national campaign 'Together for Bahrain's Safety', providing sanitizers and cleaning products to needy families and other vulnerable groups in Bahrain.
• Adoption of sustainable energy-efficient solutions through the use of outdoor enclosures to improve the company's environmental impact and encourage smart energy management.

Professional Development:

• Launch of 'BE WELL' to incentivize employees to adopt healthy habits through gamification and rewards. 
• Continuation of the developmental TALKS series, where prominent business leaders delivered inspirational speeches and interactive sessions to employees.

Launch of internally-created gamification and training platform, 'Travel in the Digital World', to help upskill and reskill employees in digital fields, plus enhance engagement by gamifying the learning experience.