Zain Group announces its consolidated financial results for the third quarter and nine-month period of 2020.
The company records strong revenues of US$3.9 billion and net profit of US$429 million for the nine month (9M) period, along with a stable customer base of 48.9 million customers. Zain Group’s third quarter performance saw revenues increase 9% and net profits up 33% when compared to 2nd quarter of 2020.
Group Key Performance Indicators for 9M – 2020
Total Managed Active Customers |
|
|
Consolidated Revenues |
KWD 1.2 billion (US$ 3.9 billion) |
|
EBITDA |
KWD 502 million (US$ 1.6 billion) |
|
EBITDA Margin |
42% |
|
Net Income |
KWD 132 million (US$ 429 million) |
|
EPS |
KWD 0.030 (US$ 0.10) |
Commenting on the results, Vice-Chairman & Group CEO, Bader Al-Kharafi, said: “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.”
Despite the challenges posed by the COVID-19 pandemic, which weighed down on global and local economic sectors, Zain Group managed to overcome many of the challenges that emerged this year and maintain good profitability.
The expansion of 4G networks across all markets, 5G networks in Kuwait and Saudi Arabia, and the launch of 5G commercial services in Bahrain, boosted the company’s consolidated data revenue. It increased 9% year-over-year to reach USD 1.61 billion, representing 41% of the Group’s revenue for 9M 2020.
Zain KSA
Zain KSA has maintained its stellar financial performance for the ninth consecutive quarter, posting net profits of SAR 224 million during the first nine months of the year. The company's revenue grew to SAR 1,928 million in Q3 2020, up from SAR 1,889 million in Q2 2020 represented by 2% increase.
Accumulated losses continued to drop reaching SAR 1,384 million at the end of Q3, and during the fourth quarter of the current year, Zain KSA’s announced that the extraordinary general assembly approved the company’s capital restructuring, increasing it to SAR 8,987 million.
Consequently, due to the net profit achieved during the third quarter and the capital restructuring in the fourth quarter of the year, the majority of the accumulated losses were amortized and currently stand at only SAR 34 million.
Zain KSA said it has added the cities of Buqayq, Jubail, and Hafar Al Batin to its 5G services map, expanding its 5G network to 50 cities, enabled by more than 4,600 towers. This 5G expansion coincides with Zain's launch of the iPhone 12 series of Apple smartphones, which support 5G technology.
Commenting on the performance to date, the Chairman of the Board of Directors of Zain Group, Ahmed Al Tahous said: “The Board is working closely with management in overcoming the impact of COVID-19 across our footprint with a particular focus on expanding 4G and 5G networks, and at the same time, seeking new lucrative opportunities in the ICT sector to drive revenue growth.”
