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Zain records 411% profits after African networks sale

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Kuwait’s Zain has reported a 411% rise in its nine-month profits thanks to the one-off gain from the sale of its African networks to Bharti Airtel.

For the first nine months of 2010, the Zain Group generated consolidated revenues of US$3.5 billion an increase of 8.4% compared to the same period of 2009.

Reports reaching ghanabusinessnews.com from the international telecoms sector indicate that the company’s net income reached US$3.37 billion including capital gain US$2.65 billion from the sale of Zain Africa assets on June 8, 2010.

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,” the Zain Chair said.

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 revenues of US$1.1 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.

Meanwhile Zain’s Sudan operation also 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.

In 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.

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,” he said.

By Samuel Dowuona

Zain records 411% profits after African networks sale

Zain records 411% profits after African networks sale

Kuwait’s Zain has reported a 411% rise in its nine-month profits thanks to the one-off gain from the sale of its African networks to Bharti Airtel.
For the first nine months of 2010, the Zain Group generated consolidated revenues of US$3.5 billion an increase of 8.4% compared to the same period of 2009.
Reports reaching ghanabusinessnews.com from the international telecoms sector indicate that the company’s net income reached US$3.37 billion including capital gain US$2.65 billion from the sale of Zain Africa assets on June 8, 2010.
Mr Asaad Al-Banwan, Chairman of the Board of Directors of Zain commented, “In this new era of focus on our Middle East operations, we are extremely pleased with the robust 25% customer growth and 8.4% revenue increase, both of which are in line with our targets for the period.”
He further added, “Several of our key markets are performing extremely well on many levels and are now reaping the rewards of the substantial network investments the company has made over the years.
“The best is yet to come for many financial indicators for the Group as a whole, as we diligently strive to maximise shareholder value,” the Zain Chair said.
On his part, Zain Group CEO Mr Nabeel Bin Salamah noted the impressive performance of Zain’s Saudi Arabia operation that now serves 7.3 million customers and which is remarkably EBITDA positive.
“This is quite an achievement for a mobile company that has been operating for just over two years and which is now the largest revenue earner in the Zain Group with US$ 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 revenues of US$1.1 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.
Meanwhile Zain’s Sudan operation also 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.
In 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.
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,” he said.

By Samuel Dowuona

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