Zain Group posts 9% revenue increase in Q3
Zain Group’s latest financial results confirmed an increase in revenue and net profit due to growth in 4G and 5G, which has helped minimise the impact of Covid-19.
Revenue for the quarter stood at US$ 1.3 billion, down 1% year on year but up 9% compared to Q2. On net profit the group posted $429 million for the first nine-months of 2020, an increase of 33% compared to Q2.
EBITDA for the quarter reached $542 million, a decrease of 9% Y-o-Y, reflecting a 41% EBITDA margin. Net income for the three months amounted to $ 157 million, a 14% decrease Y-o-Y. Earnings per share for Q3 totalled just $0.04. Ongoing “efficiency drives” have reduced operational costs by $ 130 million.
Bader Nasser Al-Kharafi (pictured), Zain’s VC and group CEO, commented: “The telecom sector is not immune to the current pandemic facing the global community that will continue to play havoc across all aspects of socio-economic life for the foreseeable future. Nevertheless, we continue our resolve and commitment to ensuring meaningful connectivity and implementing more digitalisation initiatives to better serve businesses, governments, and societies, aiming to lessen the impact of Covid-19 on society.”
On its year to date figures, in the first three quarters Zain reported generated consolidated revenue of $3.9 billion, down 2% Y-o-Y, while consolidated EBITDA for the period reached $1.6 billion, down 7% Y-o-Y and reflecting what the group described as a “healthy EBITDA margin of 42%”. Consolidated net income amounted to $429 million, reflecting a 14% Y-o-Y decrease. Earnings per share stood at $0.10 for the nine-month period.
Among the operational highlights noted in the report, Zain Group recalled the launch of Zain Data Park and the strategic partnership for digital infrastructure with TASC Towers Holding. In February, Zain Group also completed the sale and leaseback of the passive physical infrastructure of 1,620 mobile towers for $130 million to IHS Holding Limited
Present in eight markets across the MEA region, Zain Group has a customer base of 48.9 million.