Zain announces healthy financial results for first nine months of 2010
Zain today announces its Group consolidated financial results for the first nine months, ending 30 September 2010. The results showed a healthy growth in several key performance indicators:
Nine months 2010 Key Performance Indicators (Kuwaiti Dinars & USD)
Total Managed Active Customers
35.3 million up 25% on Sept 2009
KWD 1.01 Billion (US$ 3.5 billion)
EBITDA (margin 44%)
KWD 448 million (US$ 1.55 billion)
KWD 324 million (US$ 1.12 billion)
Net Income (including capital gain)
KWD 976 million (US$ 3.37 billion)
Earnings Per Share
Fils 252 (US$0.87)
For the first nine months of 2010, the Zain Group generated consolidated Revenues of KWD 1.01 billion (US$ 3.5 billion), an increase of 8.4% compared to the same period of 2009. The company’s consolidated EBITDA reached KWD 448 million (US$ 1.55 billion) reflecting an EBITDA margin of 44% with EBIT reaching KWD 324 million (US$ 1.12 billion). Net Income soared 411% to reach KWD 976 million (US$ 3.37 billion) inclusive of the capital gain of KWD 770.3 million (US$ 2.653 billion) from the sale of Zain Africa assets on June 8, 2010. The earnings per share reached 252 fils (US$ 0.87).
Mr Asaad Al-Banwan, Chairman of the Board of Directors of Zain commented, "In this new era of focus on our Middle East operations, we are extremely pleased with the robust 25% customer growth and 8.4% Revenue increase, both of which are in line with our targets for the period.” He further added, “Several of our key markets are performing extremely well on many levels and are now reaping the rewards of the substantial network investments the company has made over the years. The best is yet to come for many financial indicators for the Group as a whole, as we diligently strive to maximise shareholder value.”
Mr Al Banwan also revealed that the first nine-month period in 2010 witnessed an increase in total Shareholders’ Equity of approximately 9.3%, reaching US$ 9.26 billion, compared with US$ 8.47 billion for the corresponding period of 2009.
He further stated, “The first nine month 2010 Net Income (excluding the capital gain) and EBITDA results is all the more impressive when one takes into account that in the same period last year, the result benefited from several provisions reversals, on the back of favorable ruling resulting in an extraordinary net income gain of KWD 63 million (US$218 million) and EBITDA gain of KWD 44.8 million (US$ 155 million). Absent these last year adjustments, EBITDA and Net Income growth for the first nine months of 2010 would have been much higher than stated, at a respective growth of 9% in EBITDA and 61% in Net Income.”
On his part, Zain Group CEO Mr Nabeel Bin Salamah noted the impressive performance of Zain’s Saudi Arabia operation that now serves 7.3 million customers and which is remarkably EBITDA positive. “This is quite an achievement for a mobile company that has been operating for just over two years and which is now the largest revenue earner in the Zain Group with US$ 1.12 billion in revenues for the nine months to date,” he said.
Mr Bin Salamah highlighted Iraq as Zain’s largest operation by customers. It now serves 11.8 million people and also turned in impressive revenues figures of $1.10 billion for the nine-month period to date. The Iraqi network is being extensively expanded to cover the Northern region of Kurdistan and will be commercially operational by the first quarter of 2011. Also of note is the Sudan operation, which recently achieved a major milestone in attaining its 10 millionth customer. Despite the aggressive competition in Kuwait, the operation continues to maintain dominant market share and record impressive financials on many fronts, spurred on by its many great customer offerings. In Bahrain, similarly faced with aggressive competition, the operation continues to achieve satisfactory results and maintain its technological edge on many fronts. By the same token, Zain Jordan continues to maintain its leading position in the Kingdom, both in terms of customer market share and revenues, recording an healthy 11% revenue growth for the period. Inclusive of Lebanon, where the company manages the ‘mtc touch’ network on behalf of the government, Zain is the market leader by customers in five of its seven Middle East operations.
In conclusion, Mr Bin Salamah reiterated, “with a healthy cash balance and reduced debt levels, the company is now well-positioned to focus on, and further grow, its profitable Middle East operations. We will strive to increase our market leadership by offering customers the latest technologies and quality mobile services, ensuring a wonderful mobile experience.”
This article was originally posted on Africa ICT & Telecom Network