Op­er­a­tional re­view of key mar­kets for the nine months ended 30 Septem­ber, 2016

Kuwait Times - - BUSINESS -

Kuwait: Main­tain­ing its mar­ket lead­er­ship, Zain Group’s flag­ship op­er­a­tion saw its cus­tomer base serve 2.9 mil­lion in a very chal­leng­ing nine-month pe­riod that wit­nessed in­tense price com­pe­ti­tion im­pact its fi­nan­cial per­for­mance for the pe­riod. Rev­enues reached KD 242 mil­lion ($803 mil­lion), EBITDA amounted to KD 118 mil­lion ($393 mil­lion) and net in­come came in at KD 65 mil­lion ($215 mil­lion). Data rev­enues (ex­clud­ing SMS & VAS) formed 36 per­cent of the op­er­a­tion’s to­tal rev­enues. Zain Kuwait re­mains the most ef­fi­cient mo­bile op­er­a­tor within the Group and one of the most ef­fi­cient in the re­gion with an en­vi­able 49 per­cent EBITDA mar­gin.

Iraq: The ex­cep­tional so­cio-eco­nomic cir­cum­stances fac­ing Zain Iraq saw the op­er­a­tion’s fi­nan­cial per­for­mance ham­pered, with rev­enues for the pe­riod reach­ing $804 mil­lion and EBITDA reach­ing $284 mil­lion. Net in­come amounted to $29 mil­lion, with the EBITDA mar­gin stand­ing at 35.3 per­cent. Data-related rev­enues formed 9 per­cent of over­all rev­enues for the first nine-months of 2016 and cus­tomers served to­talled 11.8 mil­lion, a 3 per­cent in­crease Y-o-Y.

Su­dan: In lo­cal cur­rency (SDG) terms, the op­er­a­tor’s rev­enues grew by 10 per­cent Y-o-Y to reach SDG 3.7 bil­lion ($577 mil­lion, up 8 per­cent in USD terms) for the first nine months of 2016. EBITDA in­creased by 14 per­cent to reach SDG 1.6 bil­lion ($244 mil­lion, up 12 per­cent in USD terms), while net in­come de­creased 10 per­cent to SDG 646 mil­lion ($100 mil­lion, down 11 per­cent in USD terms). Data rev­enues (ex­clud­ing SMS and VAS) formed 13 per­cent of to­tal rev­enues, with an im­pres­sive an­nual growth rate of 44 per­cent (42 per­cent in USD terms). The op­er­a­tion saw its cus­tomer base ex­pand 8 per­cent to reach 12.5 mil­lion.

Saudi Ara­bia: The op­er­a­tion served 10.5 mil­lion cus­tomers at the end of Septem­ber 2016, a 11 per­cent de­cline Y-oY due to the bio­met­ric reg­is­tra­tion re­quired by the coun­try’s tele­com reg­u­la­tory au­thor­ity. Rev­enues were rel­a­tively sta­ble for the nine-month pe­riod at $1.4 bil­lion, while EBITDA grew 7 per­cent to reach $348 mil­lion and net losses amounted to $225 mil­lion for the pe­riod. Zain Saudi Ara­bia’s EBITDA mar­gin reached 24.7 per­cent. Im­pres­sively, the op­er­a­tor wit­nessed a 37 per­cent Y-o-Y rise in data rev­enues (ex­clud­ing SMS & VAS), rep­re­sent­ing 31 per­cent of to­tal rev­enues as the com­pany in­vested heav­ily and ex­panded its mod­ern 4G LTE net­work.

Jor­dan: Zain Jor­dan con­tin­ues to per­form well on mul­ti­ple lev­els, main­tain­ing its mar­ket lead­ing po­si­tion re­flected by grow­ing its cus­tomer base by 2 per­cent Yo-Y, to now serve 4.2 mil­lion cus­tomers. Yo-Y rev­enues in­creased 6 per­cent to reach $363 mil­lion, with EBITDA up by 18 per­cent to reach $179 mil­lion, re­flect­ing an im­pres­sive 49 per­cent EBITDA mar­gin. Net in­come in­creased 11 per­cent to reach $79 mil­lion. With the launch of 4G ser­vices, data rev­enues (ex­clud­ing SMS & VAS) rep­re­sented 33 per­cent of to­tal rev­enues, up by 24 per­cent Y-o-Y.

Bahrain: Zain Bahrain saw its cus­tomer base in­crease 19 per­cent to reach 969,000 and gen­er­ated rev­enues of $132 mil­lion for the nine-month pe­riod, down 8 per­cent Yo-Y. EBITDA for the pe­riod reached $49 mil­lion, down 11 per­cent, re­flect­ing an EBITDA mar­gin of 37 per­cent. Net in­come amounted to $8 mil­lion, re­flect­ing an 11 per­cent de­crease. Data rev­enues (ex­clud­ing SMS & VAS) in­creased 8 per­cent Y-o-Y, rep­re­sent­ing 39 per­cent of over­all rev­enues.

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