Zain Group generates revenue of $1.3bn, net

Zain Group generates revenue of $1.3bn, net

KUWAIT: Zain Group, a leading mobile innovator with operations in seven markets across the Middle East and Africa, announced its consolidated financial results for the first quarter (Q1) ended March 31, 2021. Zain served 48.5 million customers at the end of the period.

Zain Group generated consolidated revenue of KD 382 million ($1.3 billion) for the first quarter of 2021, down 6 percent year-on-year (Y-o-Y). EBITDA for the quarter reached KD 158 million ($523 million), down 7 percent Y-o-Y, reflecting an EBITDA margin of 41 percent. Net income for the quarter reached KD 45 million ($147 million), down 5 percent Y-o-Y reflecting an Earnings Per Share of 10 fils ($0.03). Significantly, Zain Group net income grew operationally by 4 percent Y-o-Y for Q1, 2021, when excluding the one-time gain from the sale and lease back of towers in Kuwait during Q1 2020.

For Q1 2021, foreign currency translation was impacted mainly due to the currency devaluation in Sudan from 55 to 375 (SDG/USD) during end of February, and a 19 percent currency devaluation in Iraq from 1,190 to 1,470 (IQD/USD), cost the Group $177 million in revenue and $66 million in EBITDA.

Zain Group’s resilient results for Q1 2021 were achieved despite the