Zain announces solid financial results for first nine months of 2011 as net income increases by 7%
- Period highlighted by a year-on-year 7% net income increase to US$ 762.5 million with 2.2% increase in revenues to reach US$ 3.6 billion
- Group added 6.1 million customers over the past 12 months, a 17% increase. Total active customer base is now 41.4 million
- Currency variance losses for nine month period total US$ 100 million
- Significant growth in broadband revenues, gap between voice and data revenues diminishing and supporting ARPU levels.
Kuwait, November 1, 2011
*It’s important to note that the net profit and profit percentage growth result for the first nine months mentioned below excludes, and does not take into account, the capital gain from the sale of the Zain Africa assets that was concluded on June 8, 2010.
Zain announces today its consolidated financial results for the first nine months of 2011. The results showed solid growth in several key performance indicators.
First Nine Months of 2011 Key Performance Indicators:
Total Managed Active Customers 41.4 million (up 17% on Q3, 2010)
Consolidated Revenues KWD 988.1 million (US$ 3.582 billion)
EBITDA KWD 444.4 million (US$ 1.611 billion)
EBITDA Margin 45% (up 1 percentage point)
EBIT KWD 319.9 million (US$ 1.160 billion)
Net Income KWD 210.2 million (US$ 762.5 million)
EPS KWD 0.054 (US$ 0.20)
For the first nine months of 2011, the Zain Group recorded consolidated revenues of KWD 988.1 million (US$ 3.582 billion), reflecting a positive 2.2% increase on the same period in 2010. The period saw net income increase to KWD 210.2 million (US$ 762.5 million), an impressive 7% increase on the same nine month period in 2010. The company’s consolidated EBITDA reached KWD 444.4 million (US$ 1.611 billion) up 4% on the corresponding period in 2010, reflecting an EBITDA Margin of 45% (up one percentage point) with EBIT of KWD 319.9 million (US$1.160 billion), a 3% increase on the corresponding period in 2010. The earnings per share reached 54 fils (US$0.20).
Year-on-year customer growth across all Zain operations was 17%. As of September 30, 2011, the company was serving 41.4 million managed active customers. The Zain Group has added 6.1 million new active customers over the past 12 months.
Remarks from both the Chairman and CEO:
Commenting on the results, the Chairman of the Board of Directors of Zain, Mr Asaad Al Banwan said, “These solid results justify the many prudent decisions recently adopted by the board and the executive management that focus on maximising shareholder value. Despite intense competition and the lingering effects of the global economic crisis, the continuous growth in several key financial indicators is indicative of the successful operational efficiency drive implemented by the company.”
Mr Al Banwan also noted that, “These nine-month results are all the more impressive when one considers that the net profit for the period was adversely affected by currency variances totaling US$ 100 million.”
Mr Al Banwan also revealed that the quarter witnessed growth in total shareholders’ equity, to now reach US$ 7.64 billion. This is all the more impressive when one takes into account that the company distributed over KWD1.4 billion (over US$5 billion) in dividends over the past two years.
Zain Group CEO Mr Nabeel Bin Salamah said: “The company has focused on providing customers with a wonderful mobile experience through significant technology upgrades to our networks combined with appealing mobile data broadband offerings across many of our operations. We have seen significant growth in broadband revenues particularly as a result of increased use of social networking sites and applications via smart phones and tablets. The gap between voice and data revenues as a percentage of total company revenues is diminishing and supporting ARPU levels.”
In conclusion, Mr Bin Salamah stressed that the Group and country executive management teams are focused on maximizing shareholder value. “With a healthy cash balance and reduced debt levels, coupled with an optimal efficiency drive on many levels, the company is well-positioned to continue investing in and grow its profitable cash-generative operations.”
Zain is a leading telecommunications operator across the Middle East providing mobile voice and data services to over 41.4 million active customers as of 30 September 2011. With a commercial presence in 7 countries, Zain operates in the following countries: Bahrain, Iraq, Jordan, Kuwait, Saudi Arabia, Sudan and is currently rolling out its network in South Sudan. In Lebanon, the company manages ‘mtc-touch’ on behalf of the government. In Morocco, Zain has a 15.5% stake in Wana Telecom, now branded ‘INWI’, through a joint venture. Zain is listed on the Kuwait Stock Exchange (stock ticker: ZAIN). For more, please email email@example.com or visit: