Zain reports $1.6b revenues in Q1

Zain announced the year-on-year 40 per cent increase in its net income rising to $ 251.1 million with stable revenues of $1.163 billion at end of Q1. The telecom giant also announced the surge in the customer base of 20% to total 37.6 million.

The Zain Group recorded consolidated revenues $ 1.163 billion in Q1, reflecting a positive one per cent increase on the same period in Q1-2010.

The period witnessed net income soaring to $ 251.1 million, an impressive 40% increase on the same period in Q1-2010. The company’s consolidated EBITDA reached $ 529.7 million up 10% on Q1-2010, reflecting an EBITDA margin of 46% (up 4 percentage points) with EBIT of $379.9 million, a 10% increase on Q1-2010. The earnings per share reached $0.06.

Zain Group completed a $1.3 billion syndicated loan facility with a syndicate of international and regional banks to be utilized for general corporate purposes. The facility comprised of two parts, a 12-month term loan of $433.33 million and a revolving credit facility of $ 866.67 million with a maturity of three years.
Successful closure of landmark IFC led $400 million seven-year facility for Zain Iraq to fund network enhancement and expansion coupled with the successful launch of commercial services in country’s northern Kurdistan region. Zain Iraq now serves 12 million customers (up 14%) with a healthy 11% increase in revenues.
Notable growth in Zain Sudan which now serves 10.65 million customers (up 21%) and attaining 13% revenue increase in local SDG currency.
“These impressive results justify the many prudent decisions recently adopted by the Board and the executive management. The company has reengineered itself, focusing on maximising shareholders’ value while at the same time providing customers with a wonderful mobile experience. The impressive 40% net income growth and earnings per share of 18 fils, coupled with customer growth of 20%, indicates we on the right track,” said Asaad Al Banwan, the Chairman of the Board of Directors of Zain.

“Despite intense competition on various levels across all the markets and adverse currency fluctuations, it was pleasing that the company maintained relatively stable revenue levels overall. He pointed out that the net profit for the quarter was adversely affected by currency fluctuations of an amount of $84 million, which was partially offset by an adjustment and reversal of provisions related to executive management entitlements during the quarter,” he added.

The Chairman also revealed that the quarter witnessed an increase in total shareholders’ equity of approximately 12 percent, reaching $ 9.748 billion, compared with $ 8.72 billion at the end of the first quarter of 2010.
“The operational efficiency drive implemented over the past 12 months has resulted in healthy growth of several key indicators. Additionally we are reaping the rewards of our extensive investments in network technology upgrades across all our country operations, and we expect such progress to continue for the foreseeable future,” said Zain Group CEO Nabeel Bin Salamah.
“The company is seeking to further increase market leadership in the markets Zain serves, by delivering customers the latest innovative technologies and quality mobile services,” he added.

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