Zain Group’s net profit for 1st quarter 2022 grows 6% to reach $156 million

Zain Group’s net profit for 1st quarter 2022 grows 6% to reach $156 million

KUWAIT: Zain Group, a leading telecom innovator with operations in seven markets across the Middle East and Africa, announces its consolidated financial results for the first quarter (Q1) ended March 31, 2022. Across its footprint, Zain increased its active customer base by 2.3 million to serve 50.9 million. Zain Group generated consolidated revenue of KD 408 million ($1.3 billion) for the Q1 2022, up7% year-on-year (Y-o-Y).

EBITDA for the quarter reached KD 154 million ($507 million), down 3% Y-o-Y, reflecting an EBITDA margin of 38%. Net income for the quarter reached KD 47 million ($156 million), up 6% Y-o-Y reflecting an Earnings Per Share of 11 fils ($0.04). For Q1 2022, foreign currency translation was impacted mainly due to the currency devaluation in Sudan from an average of 271 (SDG/USD) during Q1 2021 to an average of 483 (SDG/USD) during Q1 2022, cost the Group $120 million in revenue and $80 million in EBITDA.

Key Operational Notes

(1) Zain Group consolidated data revenue reached $536 million, representing 40% of the Group’s overall revenue

(2) Over the quarter, Zain Group invested $74 million in CAPEX (tangible and intangible) reflecting 5.5% of total revenue, mainly in expansion of Fiber-to-the-Home (FTTH) infrastructure; spectrum fees; 4G upgrades and