Zain Group Achieves Record High Revenue in Q3 and 9M 2024

Zain Group, a leading provider of innovative technologies and digital lifestyle communications operating in eight markets across the Middle East and Africa, announces its consolidated financial results for the third quarter (Q3) and nine-months (9M) periods ended 30 September 2024, serving 47.2 million customers.

For 9M-2024, Zain generated a 15-year high consolidated revenue of KD 1.45 billion (USD 4.71 billion), up 2% YoY. Consolidated EBITDA for the period reached KD 505 million (USD 1.65 billion), with normalized EBITDA growth (excluding number range claim) remaining stable YoY, reflecting an EBITDA margin of 35%. Net income for the 9-month period reached KD 136 million (USD 442 million) representing normalized net income growth of 6%, adjusted for number range claim and Tower transaction gain during nine-month period of 2023. Earnings per share amounted to 31 fils (USD 0.10) for the nine-month period.

In Q3 2024, Zain generated a 15-year high consolidated revenue of KD 501 million (USD 1.64 billion), up 4% YoY. EBITDA for the quarter reached KD 180 million (USD 589 million), reflecting a 36% EBITDA margin. Net income for the three months amounted to KD 54 million (USD 177 million), an increase of 1% YoY. Earnings per share for Q3 amounted to 13 fils (USD 0.04).

The strong foundations we have established over the years continue to drive shareholder value and empower us to overcome the various socio-economic challenges across our footprint where we continue to implement purposeful ESG practices. Our investments in latest technologies, network upgrades, digital infrastructure, and new business verticals with a focus on exceptional customer experience delivery, have positioned Zain as the digital service operator of choice for consumers, enterprises, and governments.

On the back of the solid results achieved throughout the year, combined with our strong balance sheet and financial solvency, and in line with our declared 35 fils per share minimum dividend policy for three years commencing 2023, on October 6, 2024, we distributed 10 fils per share as interim dividends to shareholders. This is the fourth consecutive year we have done so, with this disbursement amounting to KD 43.3 million (USD 141.5 million).

The Board and the Group management team continue to work closely with our colleagues in Sudan to navigate the ongoing social unrest. Our focus is on ensuring the safety of our people and maintaining commercial operations, so the community remains connected. We are sincerely grateful to the various government authorities in Kuwait and across our markets for their support of the ICT sector, which empowers Zain to provide meaningful connectivity and drive systemic change.

– Mr. Osamah Al Furaih, Chairman of the Board of Directors, Zain Group

Across our markets, management teams have diligently and successfully overcome competitive and currency challenges, delivering excellent operational performances in line with expectations. Our operations in Kuwait, Saudi Arabia, Iraq, Jordan, and Bahrain have all reported solid year-on-year growth in their key financial metrics. Furthermore, we are witnessing robust revenue growth in our strategic business verticals, namely ZainTECH, Zain Omantel International and in our Fintech and Digital Services entities. These all-round efforts have resulted in Zain recording 15-year revenue highs for both the 3rd quarter and 9-month periods.

In Sudan, our concerted efforts to ensure network service availability combined with customer and price revamp initiatives are mitigating the impacts of the ongoing crisis. However, the substantial and unavoidable currency devaluation in the market continues to impact heavily an otherwise impressive operational quarter for the Group overall.

Five years ago we implemented our ‘4Sight’ profitability-focused growth strategy that has resulted in the implementation of significant digital transformation, cost optimization, and data monetization initiatives across all facets of the company’s business. This has been the main driver of our success and resilience in recent years.  4Sight also entailed the rollout of new business verticals, allowing us to capitalize on new and lucrative market opportunities in ICT, Fintech, Venture Capital, Digital Services, Esports, Towers and Wholesale business areas. We are confident that the positive momentum of these new business verticals and others in the pipeline, will create substantial shareholder value, as we focus on accelerating their growth.

The recognition for ‘Excellence in Innovative Data Architectures’ attained by Zain Group’s Data Office, in collaboration with ZainTECH, validates the company’s focus on becoming a leader in the ICT industry. By embracing a data-driven approach that is a catalyst for the uptake of AI, we are playing a pivotal role in turning potential into reality. We are empowering AI systems to learn, adapt, and drive innovation and digital transformation as our data practices help business users within Zain to access the right information at the right time, to make informed decisions for the company and customers alike.

– Bader Al-Kharafi, Vice-Chairman and Group CEO, Zain