Zain Bahrain posts BD 917,000 Q1 profit as LTE usage surges by 121%
Manama - 21 April, 2016:
Zain Bahrain (Ticker: ZAINBH), a telecoms innovator focused on enhancing customer experience, posted a BD 917,000 (US$ 2.4 million) net profit for the three-month period ending 31 March 2016, as data usage through its state-of-the-art 4G LTE network surged by 121%. The 10% decrease from the BD 1 million (US$ 2.7 million) earned during the same quarter last year comes on the back of 9% lower revenues of BD 16 million (US$ 42.3 million) for the current period, compared to BD 17.8 million (US$ 46.6 million) a year earlier.
Meanwhile, the operator continued gaining market share, showing an increase in its customer base versus the previous quarter. The movements in customer growth and data use are largely attributable to Zain Bahrain's $100 million investment in the Kingdom's most advanced mobile LTE network, with wider and more stable coverage and faster data speeds. EBITDA changed by 11% to BD 6.2 million (US$ 16.4 million) for the quarter, compared to BD 6.9 million (US$ 18.3 million) in Q1 last year when the EBITDA margin for the first quarter of 2016 had reached 38.7%.
Zain Bahrain Chairman, His Excellency Shaikh Ahmed bin Ali Al Khalifa said: "This quarter's results further reinforce our view that Zain Bahrain's strategy of focusing on customer experience and providing the most advanced technologies through its state-of-the-art network has started to deliver tangible returns on several of our key indicators. This has resulted in an increase in our customer base to above 807,000 active users by the end of the quarter. Moreover, this increase in our customer base, along with our segmented offers targeting data, has resulted in a 121% jump in data growth over the previous year. Our data services are set to receive yet another major boost with the upcoming deployment of TD LTE technology, the next generation of LTE, which will help us maintain our technology leadership in the market, while having a positive impact on profits as well."
His Excellency Shaikh Ahmed continued: "Zain Bahrain remains focused on operational excellence and innovation internally and across the extensive spectrum of our products and services. At the same time, we plan to take full advantage of our ownership of Bahrain's newest and most modern mobile telecommunications infrastructure, a competitive advantage that has placed us at the beginning of a new cycle of growth that will further enhance shareholder value in the years to come."
Key achievements for Zain Bahrain during Q1 2016
The first quarter of 2016 saw the launch of innovative new promotions and customer engagement initiatives, including the bundling of the Samsung S7 and S7 Edge with Zain Bahrain smart packages. The cutting edge models, the highest advancements in Samsung history, were selected to showcase Zain Bahrain's state-of-the-art 4G LTE and HD voice capabilities, which ensure that customers enjoy a superior network experience. Additionally, Zain Bahrain's long-standing partnership with Samsung will ensure a seamless after-sales service experience for smartphone customers.
Following Zain Group's lead, Zain Bahrain continued shifting its strategic focus from corporate social responsibility to more sophisticated corporate sustainability initiatives that are expected to bring greater returns to both the company and the communities it supports.
The operator renewed its partnership with Capital Club Bahrain, the Kingdom's premier private city club, sponsoring select business forums and increasing its engagement with local business. It also strengthened its partnership with Tamkeen, the business and human capital development agency, by participating in the second edition of its one-day 'Kun Muntijan' workshop and exhibition, at which Zain Bahrain also offered voice and data packages and support hardware tailor-made for startups with low cash flow, as part its commitment to youth empowerment and innovation.
Zain Bahrain also lent a supporting hand to the 'Nasayem Al Bahrain' Festival held at Riyadat Mall in A'Ali, which showcased home-grown gardening and agricultural products with the aim of promoting a greener, fresher and a more sustainable Bahrain. The operator's support of this festival was in line with its Second National Mobile Phone and e-Waste Recycling Campaign held in cooperation with the Supreme Council for Environment (SCE), and with the support of the United Nations Industrial Development Organization (UNIDO) and the United Nations Development Program (UNDP).
At the Group level, Zain Bahrain took part in the Mobile World Congress (MWC) in Barcelona, where its booth was visited by Bahrain's Minister of Transportation and Telecommunications, HE Engineer Kamal bin Ahmed, who met with Zain Group Chairman, Asaad Al Banwan, Group CEO, Scott Gegenheimer and Zain Bahrain General Manager, Mohammed Zainalabedin. The Minister thanked Zain Bahrain for its contributions towards advancing the telecommunications sector and for its investment in the most technically advanced network in the Kingdom.
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