Chairman, Ahmed Al Tahous: "The Board working closely with management in expanding 4G and 5G networks to drive growth and minimize impact of COVID19"
Vice-Chairman & Group CEO, Bader Al-Kharafi: "A challenging nine months necessitating more digitalization to support businesses, governments, and societies; we are optimistic of the telecom sector's resilience in such times"
Rollout of "Zain Data Park" for cloud hosting, managed services, and cybersecurity
Zain enters digital infrastructure strategic partnership with TASC Towers Holding
Continued COVID19 lockdowns and travel restrictions in key markets impact financials
Ongoing efficiency drive reduces operational costs by USD 130 million
Consolidated data revenue growing 9% Y-o-Y for the nine months Kuwait – 4 November 2020: Zain Group, the leading telecom innovator in eight markets across the Middle East and Africa, announces its consolidated financial results for the third-quarter (Q3) and nine-month periods (9M) ended 30 September 2020. The company ended the period with a stable customer base of 48.9 million customers.
Group Key Performance Indicators (KD and USD) for the first nine months (9M) 2020
For 9M 2020, Zain Group generated consolidated revenue of KD 1.2 billion (USD 3.9 billion), down 2% Y-o-Y, while consolidated EBITDA for the period reached KD 502 million (USD 1.6 billion), down 7% Y-o-Y, reflecting a healthy EBITDA margin of 42%. Consolidated net income amounted to KD 132 million (USD 429 million), reflecting a 14% Y-o-Y decrease. Earnings per share amounted to 30 fils (USD 0.10) for the nine-month period.
For 9M 2020, foreign currency translation impact, predominantly due to the 14% currency devaluation in Sudan from an average of 46 at 9M 2019 to 53.7 at 9M 2020 (SDG / USD), cost the Group USD 78 million in revenue, USD 36 million in EBITDA and USD 9 million in net income.
Group Key Performance Indicators (KD and USD) for third-quarter (Q3) 2020
In Q3'20, Zain Group generated consolidated revenue of KD 408 million (USD 1.3 billion), down 1% Y-o-Y. EBITDA for the quarter reached KD 166 million (USD 542 million), a decrease of 9% Y-o-Y, reflecting a 41% EBITDA margin. Net income for the three months amounted to KD 48 million (USD 157 million), a 14% decrease Y-o-Y. Earnings Per Share for Q3'20 reached 11 fils (USD 0.04).
Key Operational Notes for 9M 2020
Scott Gegenheimer: A successful eight years at Zain Group
Zain Group CEO-Operations, Scott Gegenheimer will be leaving his position at Zain after eight years with the company. On behalf of the Board of Directors, Bader Al-Kharafi, Zain Vice-Chairman & Group CEO expressed his appreciation of all that Scott "had achieved for the company during his tenure and wished him success in his future endeavors."
Al-Kharafi concluded, "We are optimistic of the telecom sector's resilience in such times and firmly believe 5G technology will create vast opportunities in the value chain proposition in numerous industries and will push the telecom sector to a new and exciting phase of growth."
Operational review of key markets for the nine months ended 30 September 2020
Kuwait: Maintaining its market leadership, Zain Group's flagship operation saw its customer base serve 2.6 million. It remains the Group's most profitable operation with revenue for 9M 2020 reaching KD 236 million (USD 770 million), EBITDA reaching KD 85 million (USD 277 million), representing an EBITDA margin of 36%. Net income reached KD 58 million (USD 189 million) for 9M 2020, with data revenue accounting for 39% of total revenue.
Saudi Arabia: For the 9M 2020, Zain KSA generated revenue of SAR 5.9 billion (USD 1.6 billion), EBITDA for the period reached SAR 2.6 billion (USD 695 million), reflecting an EBITDA margin of 45%. Net income for the nine months reached SAR 224 million (USD 60 million). Data revenue represents 51% of total revenue and customers served stood at 7.0 million.
Iraq: Zain Iraq's 9M 2020 revenue reached USD 708 million and EBITDA amounted to USD 285 million, reflecting EBITDA margin of 40%. The operation reported an impressive net profit of USD 61 million for 9M 2020. The operator served 15.7 million customers maintaining its market-leading position.
Sudan: For 9M 2020, Zain Sudan generated revenue of SDG 14.9 billion (USD 278 million), with EBITDA amounting to SDG 6.5 billion (USD 121 million), reflecting an EBITDA margin of 44%. Net income for the period reached SDG 1.9 billion (USD 36 million). Data revenue represented 25% of total revenue, while the operator's customer base reached 16.0 million, maintaining its market leadership.
Jordan: For 9M 2020, Zain Jordan revenue reached USD 359 million, EBITDA reached USD 160 million, reflecting an EBITDA margin of 44%, with net income reaching USD 56 million. With the ongoing expansion of 4G services across the country, data revenue represented 46% of total revenue. Zain Jordan served 3.5 million customers maintaining its market-leading position.
Bahrain: Zain Bahrain generated revenue of USD 123 million for 9M 2020. EBITDA for the period amounted to USD 42 million, reflecting an EBITDA margin of 34%. Net income amounted to USD 10 million. END
About Zain Group: Zain is a leading telecommunications operator across the Middle East and Africa, providing mobile voice and data services to over 48.9 million active customers as of 30 September 2020. With a commercial presence in 8 countries, Zain operates in: Kuwait, Bahrain, Iraq, Jordan, Saudi Arabia, Sudan and South Sudan. In Morocco, Zain has a 15.5% stake in 'INWI', through a joint venture. Zain is listed on the Boursa Kuwait (stock ticker: ZAIN). We recommend the Investor Community download the "Zain Group Investor Relations" Mobile App. For more, please email email@example.com or visit: www.zain.com; www.facebook.com/zain; www.twitter.com/zain; www.youtube.com/zain; www.instagram.com/zaingroup; www.linkedin.com/company/zain
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