Zain Bahrain, a telecommunications industry innovator in the Kingdom, announced its financial results for the fourth quarter (Q4 2021) and full year ended 31 December 2021.
For Q4 2021, Zain Bahrain reported a net profit of BD 1.185 million, compared to BD 1.699 million for the same period in the previous year, a difference of 30%. Earnings per share fell to 3 fils from 5 fils. Revenue, meanwhile, stood at BD 16.765 million, representing a 6.5% increase from BD 15.739 million. Operating profit for the three-month period reached BD 1.403 million, down 27.5% from BD 1.926 million in Q4 2020.
Meanwhile, the company reported a 3.1% increase in net profits to BD 5.572 million for the year ended 31 December 2021, up from BD 5.405 in the previous year. Earnings per share held steady at 15 fils with revenues amounting to BD 64.784 million, a 4.5% jump from BD 61.992 million in 2020. Operating profits, meanwhile, saw a 1.7% rise to BD 6.45 million, compared to BD 6.34 million.
At the balance sheet level, Zain Bahrain’s total shareholders’ equity as at 31 December 2021 amounted to BD 78.87 million, up by 4.5% from BD 75.482 million at the end of 2020. The value of the company’s assets stood at BD 131.077 million, a 4.3% increase from BD 125.732 million in 2020. Zain Bahrain’s Board of Directors is recommending distributing annual dividends to shareholders representing 8% of the company’s paid-up capital, equivalent to 8 fils per share, subject to the Annual General Meeting approval.
The positive annual results were largely attributed to Zain’s significant infrastructure and state of the art technology investments during the year, which drove an expansion in its offerings to customers. Zain Bahrain became the first operator to provide enhanced mobile and broadband network connectivity in newly developed housing areas, including Salman Town, Khalifa City, and Ramli, as well as newly developed neighborhoods in Hidd and Lawzi. The operator continued to innovate its fixed and mobile network services, offering some of the most competitive packages available. All these investments are expected to accelerate sales significantly in the coming months and years, further increasing Zain Bahrain’s competitiveness in the market.
“As a committed partner in the Kingdom’s growth, Zain Bahrain’s continued development of its infrastructure ensures that its telecommunications services remain among the most advanced in the world. Our 2021 results benefited from market-leading mobile and broadband solutions for individual, small business, and enterprise clients which could not have been possible without these long-term investments. We were the first network provider to reach customers in several newly developing housing areas in Bahrain, offering high connectivity speeds, whilst continuing to provide home broadband customers free access to essential services such as online learning and affordable work-from-home options.
Even as we continue to deal with the uncertainty of the pandemic, our revenues and customer base have continued to grow with demand for communications services remaining at an all-time high. We recognize the importance of mobile telecommunications networks in keeping businesses running, education uninterrupted, and lives connected, and we remain committed to making our services as accessible as possible.
Investing in the nation’s youth remains one of our priorities. We saw record participation in our three Zain Youth Empowerment Programs, which are designed to equip young Bahrainis with the skills to succeed professionally in a rapidly changing jobs market. We also continued to support the Kingdom’s vibrant startup ecosystem.
2021 saw us formalize our Sustainability and Inclusivity functions, focusing on a culture of inclusion and sustainable business. In line with our commitment to the United Nations’ Sustainable Development Goals, we broadened the reach of our E-Waste Recycling Campaign through partnerships with the Supreme Council for the Environment, the Ministry of Education, and other entities.
Our focus for the coming year will be on a comprehensive strategy to enable and drive digital transformation across the Kingdom, supported by our commitment to product innovation, network expansion, customer service, and operational efficiencies.”His Excellency Shaikh Ahmed bin Ali Al Khalifa, Chairman, Zain Bahrain