Zain Group 2022 Revenue Rises 14% to Reach USD 5.6 Billion (KD 1.7 Billion)

Group Key Performance Indicators (KD and USD) for Full-Year 2022

For the full-year 2022, Zain Group generated consolidated revenue of KD 1.7 billion (USD 5.6 billion), a year-on-year (Y-o-Y) increase of 14%. Consolidated EBITDA for the period increased by 7% Y-o-Y, to reach KD 673 million (USD 2.2 billion), reflecting an EBITDA margin of 39%. Consolidated net income reached KD 196 million (USD 640 million), up 6% Y-o-Y and reflecting earnings per share of 45 fils (USD 0.15).

The Board of Directors of Zain recommended a cash dividend of 25 fils per share for the second half (H2) of 2022. This dividend follows the semi-annual dividend of 10 fils distributed earlier in 2022, totaling 35 fils per share for the year and reflecting a 78% payout ratio, one of the highest in the region. Furthermore, the Board made another recommendation to implement a minimum semi-annual and annual cash dividend policy of 35 fils in total, for the forthcoming three years, both recommendations are subject to the Annual General Assembly and statutory approvals.

It is worth noting that the total recommended cash dividends of 25 fils for H2, 2022, and 35 fils each year for the next three years will total 130 fils in cash dividends. This expected distribution, based on the current share price of Zain as of March 13, 2023, will reflect an average annual yield of approximately 8% for entitled shareholders for the three-year period.

Group Key Performance Indicators (KD and USD) for Fourth Quarter 2022

For the fourth quarter (Q4) of 2022, Zain Group generated consolidated revenue of KD 458 million (USD 1.5 billion), up 20% Y-o-Y. EBITDA for the quarter amounted to KD 182 million (USD 591 million), up 22% Y-o-Y, reflecting an EBITDA margin of 40%. Net income for the period amounted to KD 44 million (USD 143 million), representing earnings per share of 10 fils (USD 0.03).

Commenting on the 2022 full-year results, the Chairman of the Board of Directors of Zain Group, Mr. Ahmed Al Tahous, said, “A challenging year where the Board and management focused on operational efficiency, ESG initiatives and the development of lucrative business verticals to drive shareholder value among many other key initiatives. I would like to recognize the government bodies and regulatory authorities in Kuwait and across our markets for their foresight in creating a conducive environment that supports the telecom sector and empowers Zain to provide meaningful connectivity to the communities, businesses and governments we serve.”

Zain Vice-Chairman and Group CEO, Bader Al-Kharafi, commented, “The impressive results for the 4th quarter and full year of 2022 are a culmination of many cost optimization, digital innovation and data monetization initiatives executed, bolstered by 5G network upgrades, lucrative enterprise deals, tower sales, proactive regulatory and sustainability practices implemented across our footprint in accordance with our 4Sight strategy, all of which are combining to future-proof the company.

“The Board’s recommendation of 25 fils per share dividend for H2 2022, in addition to the earlier semi-annual 10 fils dividend, totaling 35 fils for the year, reflects a 2 fils increase on the previous three years and a 78% payout ratio, one of the highest in the region. This improved dividend, along with the Board’s minimum 35 fils recommendation for the forthcoming three years, provides a clear indication of the strong operational performance and strength of our financial solvency as we methodically grow the business and manage the continuing socio-economic challenges that several of our markets present.    

“The impressive growth of several digital entities that were recently launched is a key part of the Zain’s financial performance and brand strength in recent years. One million customers are now benefiting from the numerous dynamic fintech solutions across several operations, recording over USD 3.6 billion worth of transactions in 2022. We will nurture this ever-growing demand and plan to extend much needed fintech offerings across all operations in the near future.

“The impressive 52% growth of our Group-wide digital services revenue reflects the many data monetization initiatives maximizing our 5G, FTTH and 4G networks. The Dizlee API platform continues to attract more partners offering sort-after digital content and gaming solutions, resulting in profitable growth on multiple levels. Zain Esports’ tie-up with PLAYHERA MENA to offer a new tournament platform with e-commerce across the Zain footprint is driving gamers to us and cementing Zain as a leading regional gaming powerhouse.

“ZainTech’s acquisition of managed cloud provider BIOS Middle East is a major milestone in our drive to transform Zain into a leading ICT and digital lifestyle provider. This strategic acquisition is set to supercharge our capabilities in hybrid and multi-cloud managed services and enable us to provide the best suite of digital and ICT transformation services in the region to organizations and government entities. The 28% annual growth in B2B revenues across our footprint reflects the sound cooperative business model between ZainTech and our local operations’ B2B teams.

“The multiple recognitions we received during 2022, which include the Best Telecom Brand, the Best Diversity, Equity & Inclusion (DEI) strategy, as well as the Best Women Development & Leadership Program in the region, solidify our reputation as one of the most exciting, progressive and inclusive companies to work for. Zain is proactively embedding its shared values into its DNA to drive our business, sustainability and DEI agenda, enriching our purpose for being as an organization.”

Al-Kharafi concluded, “As we enter 2023 on the back of these impressive 2022 results, Zain is primed to further execute on its 4Sight strategy, building on and maximizing the many opportunities within the core telecom business while diversifying into new lucrative business verticals in the ICT, digital infrastructure, fintech and digital services arenas.”

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