Zain posts KD 55.9 mln Q1 net profits
Zain Group recorded net profits of KD 55.9 million (USD 198.4 million) for the first quarter (Q1) of 2014, up eight percent over the corresponding period last year.
Zain Group Chairman Asaad Al Banwan said in a news statement that his group’s consolidated revenues hit KD 311.1 million (USD 1.1 billion) in the first quarter of this year, up four percent when compared to the same period in 2013.
Its earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter amounted to KD 132.2 million (USD 469 million) compared to KD 126.6 million (USD 448.7 million) during Q1 2013, a comparative increase of five percent, he said.
Net income for the quarter reached KD 55.9 million (USD 198.4 million), reflecting an eight percent increase compared to USD 184.2 million for the same period of 2013. Earnings Per Share for the quarter reached USD 0.05 (fils 14).
On his part, Zain Group CEO Scott Gegenheimer welcomed the growth in all key financials indicators considering the highly saturated market conditions present with penetration rates of around 205 percent.
Zain Kuwait performed exceptionally well during the quarter, with revenue reaching USD 313 million, EBITDA reaching USD 153 million and net income of USD 98 million reflecting year-on-year (Y-o-Y) growth of nine percent, 12 percent and eight percent respectively.
Zain Iraq also performed exceptionally well in the first quarter of 2014 with revenues of USD 432.3 million, EBITDA of USD 167.8 million and net income of USD 78.3 million reflecting Y-o-Y growth of three percent, three percent and 24 percent respectively compared to Q1 2013, he said. Additionally, the Group CEO also noted the improved performance from Zain Saudi Arabia. “The transformation efforts by the new management in Saudi Arabia are taking effect, highlighted by the 45 percent Y-o-Y increase in EBITDA with net losses narrowing by 20 percent and by 31 percent compared to Q4, 2013,” he said.
“The operator saw a phenomenal 52 percent rise in data revenues Y-o-Y reflecting 17 percent of total revenues as the company expands its state-of-the-art 4G LTE network. The efficiency drive coupled with new commercial strategies is proving successful to date and we are confident that the management in Saudi Arabia will successfully drive the mobile operator towards fulfilling its potential,” he added.
As for Zain Jordan, he said despite a highly competitive and penetrated market, Y-o-Y the operation grew its customer base by five percent and net income by two percent, adding that data revenue growth was a healthy 19 percent with data revenue reflecting 24 percent of total revenues.
KUNA Kuwait News agency