Zain Group records KD 40m net income for Q3
SUDAN: A significant 61 percent currency devaluation in Sudan affected the operation’s financial results in USD terms for the first nine months of 2017. Nevertheless, in local currency (SDG) terms, the operator continues to perform remarkably well as revenues grew by 40 percent Y-o-Y to reach SDG 5.2 billion ($315 million, down 45 percent in USD terms) for the first nine months of 2017. EBITDA increased by 30 percent to reach SDG 2 billion ($124 million, down 49 percent in USD terms) and net income increased by 29 percent to SDG 836 million ($51 million, down 49 percent in USD terms). Data revenues (excluding SMS and VAS) accounted for 15 percent of total revenues, with an impressive annual growth rate of 63 percent. The operation saw its customer base expand by 4 percent to reach 12.9 million.
SAUDI ARABIA: The turnaround and cost optimization program in place at the operation, combined with investment in network upgrades and the introduction of appealing data monetization initiatives bolstered all key financial indicators for the first nine-months of 2017. The operator recorded its third consecutive quarterly net profit, which reflected in the operation reporting $15 million net profit for the first nine-month period, compared to net losses of $225 million for the same period in 2016. Revenues for the nine-month period were up by 9 percent, reaching $1.5 billion, with Zain KSA also recording a significant 48 percent increase in EBITDA to reach $514 million. The company’s EBITDA margin rose to 34 percent, up from 25 percent in 2016. The introduction of the biometric identification requirement over the past year, capping number of prepaid Sims to two for each unique identity and the impact of seasonality saw the operator’s total customer base shrink by 21 percent, to stand at 8.3 million customers at the end of September 2017. Impressively, the operator witnessed a 42 percent rise in data revenues (excluding SMS and VAS) Y-o-Y, representing 50 percent of total revenues.
JORDAN: Zain Jordan grew its customer base by 1 percent Y-o-Y, serving 4.2 million customers at the end of September 2017 and maintaining its market leading position despite intense price competition. Y-o-Y revenues increased 2 percent to reach $371 million, with EBITDA down 2 percent to reach $174 million, reflecting an impressive 47 percent EBITDA margin. Net income decreased 9 percent to $72 million for the nine-month period. With the continual expansion of 4G services across the country, data revenues (excluding SMS & VAS) represented 37 percent of total revenues, up by 14 percent Y-o-Y.
BAHRAIN: Zain Bahrain generated revenues of $148 million for the nine-month period of 2017, up 12 percent Y-o-Y. EBITDA for the period amounted to $44 million, down 10 percent, reflecting an EBITDA margin of 30 percent. Net income amounted to $7 million, reflecting an 8 percent decrease. Data revenues (excluding SMS & VAS) increased 29 percent Y-o-Y, representing 44 percent of overall revenues.