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