Manama, Bahrain – 9 February 2020
Zain Bahrain (BSE: ZAINBH), a leading telecommunications provider in the Kingdom, has reported net profit of BD1.454 million for the three months ending 31 December 2019 (Q4 2019), representing a 2% decrease year-on-year (from BD1.489 million). Operating profit in Q4 2019 amounted to BD1.697 million, up 16% Y-o-Y from BD1.457 million, despite a 2% Y-o-Y decline in revenue that reached BD17.106 million from BD17.505. Earnings per share remained steady at 4 fils Y-o-Y.
For the 12-month period ending 31 December 2019, Zain Bahrain reported a net profit of BD5.269 million representing a 2% increase year-on-year (Y-o-Y) from BD5.174 million. Operating profit for the period amounted to BD6.338 million, up 24% Y-o-Y from BD5.112 million, despite a 5% Y-o-Y decline in revenue that reached BD62.895 million from BD66.198 million in previous year. Earnings per share stood at 14 fils.
The company's strong operating profit is driven by continued efficiencies and cost saving programs, steered by the Zain Bahrain's solid positioning in data services, which accounts for over 47% of total revenues.
At the balance sheet level, Zain Bahrain's total equity at the end of 2019 stood at BD72.261 million, up from BD70.213 million in 2018 by 3%. The value of the company's assets at the end of 2019 amounted to BD118,739 million, up 25% Y-o-Y from BD94.803 million in 31 December 2018.
Zain Bahrain's Board of Directors is recommending distributing annual dividends to shareholders representing 6% of the company's paid up capital, equivalent to 6 fils per share.
Commenting on the impressive 2019 operational results, Zain Bahrain Chairman, His Excellency Shaikh Ahmed bin Ali Al Khalifa said, "The exceptional financial performance reflects our commitment to innovation and the delivery of services that meet the evolving needs of Bahrain's connected society. Zain believes in developing solutions and services based on the preferences of our customers, and which align with the vision of the Kingdom's leadership to drive digitization throughout the country."
Shaikh Ahmed continued, "Entering 2020, we will continue working closely with the Zain Group team to maintain our pursuit of operational excellence and remain committed to delivering an exceptional customer experience. This will be achieved through the adoption of the latest technologies and the development of more customized solutions."
Full financial statements and Zain Bahrain's financial results announcement press release are available here or on the Bahrain Bourse website, www.bahrainbourse.com.
Key achievements at Zain Bahrain in 2019:
- Launch of 'Plastic is Not Fantastic' campaign in cooperation with the Supreme Council for Environment (SCE), an initiative to promote environmental awareness.
- Sponsorship of Diversity in the Workplace panel at ePAY Summit, promoting diversity and inclusion.
- Collaboration with Bahrain-based football community app, Malaeb, to launch the 'Zain Ramadan Tournament', bringing 32 teams together over a three-day football competition.
- During Ramadan, delivering groceries and Iftar to needy families in the Kingdom as part of company's 'Giving Back to the Community' initiative.
- Launch of an 'e-Waste Recycling Initiative' in cooperation with the Supreme Council for Environment (SCE) and Crown Industries to promote and manage recycling of electronic waste.
- Employees collect 1.5 tons of e-waste as part of the 'e-Waste Recycling Initiative', to promote environmental awareness and find a solution to the crisis through responsible e-waste management.
- Entering a long-term partnership with the American University of Bahrain to provide connectivity solutions and high-speed internet.
- A plastic waste segregation approach was introduced at Zain Headquarters as part of the company's 'e-Waste Recycling initiative'
- Selection of Ericsson to deploy 5G infrastructure and successfully completes a first 5G data session.
- Partnering with the Ministry of Education and Supreme Council for Environment to launch an e-Waste competition across 17 schools in Bahrain, with the finale scheduled for March 2020.
- Launch of the 'Zain Games' platform with over 1,000 popular games compatible with iOS, Android, and Windows operating systems.
- Celebration of the Bahrain national football team's 2019 Gulf Cup win by offering team members a total of BHD 50,000 as a reward and sponsoring the team's return air flight.
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