Zain Bahrain posts BD3.05 million (US$8.07 million) net profit for the first nine months of 2016 as customer base approaches one million
Oct 17, 2016
Zain Bahrain Headquarters
Customer base surges to 969,000 by end of Q3, 2016
Growth in customer base attributed to increased investment in network capabilities and strong marketing of innovative new products
Manama – 16 October, 2016:
Zain Bahrain (Ticker: ZAINBH), a telecom innovator focused on enhancing customer experience, announced its results for the nine-month period to September 2016. The operator posted a net profit of BD3.05 million (US$8.07 million) for the nine-month period compared to BD3.41 million (US$9.02 million) for the corresponding period in 2015, representing a reduction by 10.5%. For the three months to September 2016, the net profit amounted to BD1.20 million (US$3.17 million), as Zain Bahrain’s customer base edged closer to the one million milestone number. This third quarter net profit is a 10.4% dip from the BD1.34 million (US$3.54 million) earned during the same period last year, but a 30% jump from the BD926,000 (US$2.45 million) earned in the second quarter of 2016 due to an increase in revenue. The company’s EBITDA margin was relatively stable at a healthy 37.4%.
Year-to-date, the operator’s revenues were down by 9% from BD53.63 million (US$141.88 million) to BD48.82 million (US$129.15 million). Revenues for the three months to September 2016 amounted to BD16.95 million (US$44.84 million) compared to BD18.50 million (US$48.94 million), down by 8%, whereas it surged by 7% from the second quarter of 2016, from BD15.78 million (US$41.75 million), as a result of the increase in the customer base.
Commenting on the financials, Zain Bahrain Chairman, His Excellency Shaikh Ahmed bin Ali Al Khalifa said:
“Our continuous investment in Zain Bahrain’s infrastructure will increase our network capacity and coverage while customers continue to switch to the Kingdom’s most advanced network. We remain committed to enhancing customer experience by developing innovative new products that take advantage of our network’s capabilities.”
He added: “We recorded a total of 969,000 customers at the close of the third quarter, a 19% surge from 814,000 at the same time last year, on the back of continued investment in our 4G LTE network, the most technically advanced in Bahrain, and the bringing to market of innovative new products. We are pleased to report these record breaking subscriber numbers despite an exceedingly challenging market. We are confident that our focus on excellence, innovation and best in class customer experience will continue to create a superior service for our customers and increased value for shareholders.”
Key Zain Bahrain highlights during Q3 2016
In keeping with its commitment to provide its customers with the latest cutting edge technologies and an enhanced digital lifestyle, Zain Bahrain had a hugely successful iPhone 7 and iPhone 7 Plus launch, bundling the phones with the operator’s Truly Unlimited Social Media packages. The midnight launch event of the most advanced iPhones ever saw hundreds of customers descend on Zain Bahrain outlets throughout the country. The upswing in the customer base and increased revenues resulting from this new product launch will continue to be felt well into Q4 2016 and beyond.
Adding value to Zain Bahrain’s digital lifestyle proposition, the operator also signed a new agreement with Booking.com, the global engine that connects travellers with places to stay. The tie up enables Zain Bahrain’s customers to receive free data bundles for their mobile phones when booking accommodations through a Zain Bahrain platform powered by Booking.com.
As part of the operator’s sustainable development strategy, which counts youth empowerment and development among its pillars, Zain Bahrain conducted its annual Future University Network (FUN) summer program, in which 11 trainees worked within various Zain Bahrain departments and received career advice. Further strengthening its strategic alliance with the UN, Zain Bahrain also signed a one-year partnership with AISEC, the world’s largest youth-run organization. The alliance will see Zain Bahrain collaborate on up to four projects with AISEC, the United Nations Industrial Development Organization (UNIDO) and the United Nations Development Program (UNDP). AISEC members had also participated in this year’s Zain Bahrain Ramadan campaign, ‘Iftaar Saem’, where they distributed meals to lower income families.
At the group level, Zain Group, was recognised as the ‘Best Telecom Brand’ at the Telecom World Middle East Awards 2016 for the third consecutive year, as well as clinching an unprecedented five prizes at the Global Telecoms Business Innovation Awards in London for its pioneering deal with UBER and the development of two apps by Zain in Lebanon. The Group published the fifth edition of its annual sustainability report, ‘Sustainability Report 2015: Building the Future’, making it one of the most consistently transparent mobile operators in the MENA region. The Group also announced a collaboration with the United Nations High Commission for Refugees (UNHCR) and Facebook to provide free high speed internet connectivity to more than 724.000 refugees in Jordan for the next five years.