Zain Group Annual General Meeting (AGM) was held today at Zain Group’s headquarters in Kuwait, that was livestreamed for shareholders and qualified parties and attended with a shareholder quorum of 75.14%. The AGM approved the recommended cash dividend of 23% (23 fils per share) for the second half of 2021, payable to the shareholders already registered in the company’s record as of 6 April 2022. The cash dividends will be paid to eligible shareholders commencing 13 April 2022.
This cash dividend of 23 fils per share follows the semi-annual dividend of 10 fils distributed in the second half of 2021, thus totaling 33 fils per share dividend for the year. This third consecutive payment of 33 fils per share on an annual basis completes the company’s three-year minimum commitment that started in 2019.
“The Board of Directors welcomes all shareholders and affiliated parties to the annual General Assembly, and we are pleased to present the Zain Group Annual Report, available only in digital format.
2021 was a successful year in terms of driving shareholder value given the Board and management’s focus on operational efficiency, significant investment in network upgrades, while managing the negative effects of the pandemic on our operations. As economic activity across our footprint generally recovers, Zain is well prepared to exploit the multiple opportunities opening as demand for telecommunications services continues to rise by individuals and enterprises alike. Our 4G and 5G networks, data centers, cloud and other customer facing digital platforms are all future ready and operating at optimal levels.
Zain looks forward unlocking opportunities brought by the 4th Industrial revolution, establishing a strong foothold within the government and enterprise sector and providing meaningful connectivity to the communities we serve.
We express our sincere appreciation for the confidence shown to us by our valued customers and shareholders, as well as by all the government ministries and regulatory authorities across our markets given their support in overcoming the challenges of the emerging industry dynamics.”Ahmed Al Tahous, Chairman, Zain Group
“The annual dividend payout of 33 fils reflects a 77% payout ratio, one of the highest in the region, providing a clear indication of the strength of Zain’s financial solvency and solid operational performance. It also reflects the company’s ability to execute on its profitable growth plans despite the continuing challenges of the pandemic and impact of unavoidable currency devaluations on the business.
2021 was a successful year in terms of driving shareholder value given the board and management’s prudent execution of our sustainability-conscious 4Sight strategy that empowered Zain to be a leading technology innovator. Promoting digital inclusion is of critical importance for governments and businesses at the present time and Zain continues seeking new lucrative business verticals in the digital arena.
Given the presence of the pandemic, digital technologies are being relied upon in a growing manner to bridge the digital divide, prepare the workforce for more innovative jobs in the future, and develop secure digital platforms.
Zain Group continues to accelerate investments in new business verticals, being one of the first telcos in the region to provide digital applications and platforms to support enterprises and governments, and it has continually built on that competitive advantage. We are also creating significant value for shareholders through the unlocking of capital and optimization of infrastructure assets through our tower sale and leaseback strategy.
There has been a surge in demand for broadband access due to the pandemic, and Zain has risen to the challenge across its markets. The company continues to diligently deal with other challenges including fluctuations in currency exchange rates, additional taxes, regulatory developments, intensified competition, the rise of unlicensed competitors, and the evolution of purchase patterns and consumer spending.
As we seek out new growth opportunities in a sustainable conscious manner, our priority remains to provide world-class telecommunication services to our valued customers while delivering excellent returns to shareholders and maintaining impeccable corporate governance.”Bader Al-Kharafi, Vice-Chairman and Group CEO, Zain