Page 17 - SAMENA Trends - August 2019

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

Zain Group Reports Robust Results for First Six

Months of 2019

KD 37 million (USD 121 million), and an
increase in net income of KD 3.2 million
(USD 11 million)
Commenting on the results, Chairman
of the Board of Directors of Zain Group,
Mr. Ahmed Al Tahous said, “The Group’s
performance in the first half of the year
was very pleasing given the numerous
operational and competitive challenges we
face in several key markets. The Board is
working closely with senior management
in maintaining our leadership position in
many of our markets and future-proofing
the business by investing heavily in our
networks and seeking new opportunities
in the digital space. We are committed
to the region’s economic and social
prosperity and are sincerely grateful for
the enabling environment created by the
governments and regulatory authorities
across our footprint.” Mr. Bader Nasser
Zain Group, a leading mobile innovator EBITDA for the quarter reached KD 177 Al-Kharafi, Zain Vice-Chairman and Group
with operations in eight markets across million (USD 582 million), up 108% Y-o-Y, CEO commented, “The first six months
the Middle East and Africa, announces its reflecting an EBITDA margin of 43%. Net of 2019 were exceptional as we recorded
consolidated financial results for the six Income for the quarter amounted to KD 50 impressive Net Income and EBITDA growth
months to 30 June 2019. Zain served 49.2 million (USD 165 million), up 10% Y-o-Y, in all key operations, namely Kuwait,
million customers at the end of the period, reflecting earnings per share of 12 Fils Saudi Arabia, Iraq, Jordan and Bahrain.
reflecting 4% increase year-on-year (USD 0.04). For Q2 2019, foreign currency We also continue to perform remarkably
(Y-o-Y). For the first six months of 2019 translation impact, predominantly due to well in all key financial indicators in local
(H1), Zain Group generated consolidated the 38% currency devaluation in Sudan SDG currency terms in Sudan, though
Revenue of KD 811 million (USD 2.7 billion), from an average of 28.1 in Q2 2018 to 45.6 this progress is negated by currency
reflecting a growth of 61% Y-o-Y. EBITDA in Q2 2019 (SDG / USD), cost the company devaluations. Overall, these robust set
for H1 2019 reached KD 354 million (USD USD 46 million in Revenue, USD 19 million of results reconfirm that our digital
1.17 billion), up 109% Y-o-Y, reflecting an in EBITDA and USD 6 million in Net Income. transformation program, efficiency drive,
EBITDA margin of 44%. Net Income for H1 Key Operational Notes for H1 2019 and growth strategy is on track in delivering
2019 reached KD 97.3 million (USD 321 The consolidation of Zain Saudi Arabia the ambitious financial targets we have set
million), up 13% Y-o-Y, reflecting Earnings (KSA) into Zain Group that started in Q3 in a bid to exceed all expectations from our
Per Share of 22 Fils (USD 0.07). For H1 ‘18 resulted in an additional USD 1.1 billion stakeholders.” Al-Kharafi continued, “Zain
2019, foreign currency translation impact, in Revenue and USD 506 million in EBITDA Group’s financial growth during the period
predominantly due to the 43% currency during H1 2019. in many key indicators was underpinned
devaluation in Sudan from an average of Expansion of 4G LTE networks across key primarily by the strategic consolidation
26.5 in H1 2018 to 46.5 in H1 2019 (SDG markets and the launch of 5G commercial of Zain KSA, combined with the Saudi
/ USD), cost the Group USD 101 million in services in Kuwait, coupled with numerous operator’s impressive performance,
Revenue, USD 44 million in EBITDA and data monetization initiatives saw Zain which has driven it to profitability for
USD 15 million in Net Income. Group data Revenue grow 114% Y-o-Y, to four consecutive quarters. Zain KSA’s
Group Key Performance Indicators (KD and represent 36% of the Group’s consolidated market capitalization has more than
USD) for the second quarter (Q2) of 2019 Revenue. The consolidation of Zain KSA doubled in the last 12 months, offering
In the second quarter of 2019 (Q2), Zain was the primary contributor to the data further testament of investor confidence
Group generated consolidated Revenue growth. in the successful implementation of the
of KD 407 million (USD 1.34 billion), The adoption of new accounting standard company’s turnaround strategy and future
reflecting a growth of 66% when compared IFRS 16 – ‘Lease’ from the beginning of roadmap.” The Vice-Chairman and Group
to the same period in the previous year. 2019 resulted in a benefit to EBITDA of CEO concluded, “The recent launch of 5G

17 AUGUST 2019