Zain Group Net Profit rises 15% in Q1 2019 to reach USD 155 million, Revenue up 56% to reach USD 1.33 billion

Zain Group Net Profit rises 15% in Q1 2019 to reach USD 155 million, Revenue up 56% to reach USD 1.33 billion

• EBITDA for the quarter grew by 111% to reach KD 178 million

• Consolidation and strong performance of Zain KSA bolsters Group financials for Q1 ‘19

• Net income growth of 11% in Kuwait, 55% in Bahrain and 77% in Iraq also highlight Q1

• Data revenue grew by 118% Y-o-Y, representing 37% of Group revenue

• Chairman, Ahmed Al Tahous: “The Board is focused on implementation of strategic growth plans to increase shareholder value”

• Vice-Chairman & Group CEO, Bader Al Kharafi: “Profitable growth across all key operations due to ongoing digital transformation and efficiency initiatives”

Kuwait - 2 May, 2019:

Zain Group, a leading mobile telecom innovator in eight markets across the Middle East and Africa, announces its consolidated financial results for the first quarter (Q1) ended 31 March, 2019. Zain served 50 million customers at the end of the period, reflecting a 6% increase year-on-year (Y-o-Y).

Group Key Performance Indicators (KD and USD) for the Q1, 2019

Total Active Customers    

50 million             

Consolidated Revenues

KD 404 million -   (USD 1.33 billion)


KD 178 million     - (USD 586 million)



Net Income

KD 47 million   - (USD 155 million)


11 fils   - USD 0.04


Zain Group generated consolidated revenues of KD 404 million (USD 1.33 billion) for the first quarter of 2019, up 56% compared to the same period in 2018. EBITDA for the quarter reached KD 178 million (USD 586 million), up 111% Y-o-Y, reflecting an EBITDA margin of 44%. Net income for the quarter reached KD 47 million (USD 155 million), up 15% Y-o-Y reflecting Earnings Per Share of 11 Fils (USD 0.04).   

For Q1 2019, foreign currency translation impact, predominantly due to the 48% currency devaluation in Sudan from an average of 24.9 in Q1 2018 to 47.5 in Q1 2019 (SDG / USD), cost the Group USD 59 million in revenue, USD 27 million in EBITDA and USD 10 million in net income.  

Key Operational Notes for three months ended 31 March, 2019:

  • The company held its Annual General Meeting (AGM) on 20 March 2019 and approved the distribution of a cash dividend of 30 fils (USD 0.10) per share for the 2018 financial year.

  • The consolidation of Zain Saudi Arabia (KSA) into Zain Group started in Q3 ‘18 resulted in an additional USD 559 million in revenue and USD 255 million in EBITDA during Q1’ 19.

  • The adoption of new accounting standard IFRS 16 – ‘Lease’ from the beginning of 2019 resulted in a benefit to EBITDA by KD 19 million (USD 61 million), and a minimal increase in net income of KD 1.75 million (USD 5.8 million)

  • Group data revenue experienced a 118% growth in Q1 2019, representing 37% of the Group’s total revenue. It should be noted that the data growth is predominantly due to the consolidation of Zain KSA results.

  • The three-month period was further highlighted by the notable 77% increase in net income in Zain Iraq; healthy net profit growth of 11% by Zain Kuwait and 55% by Zain Bahrain; with Zain Sudan continuing to perform exceptionally well in all key financial indicators in local SDG currency terms.

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