Zain Group, a prominent telecom services provider operating across the Middle East and Africa, has reported robust financial results for the second quarter of 2023, showcasing substantial revenue growth and strategic advancements in its operations. The company’s performance highlights its steadfast commitment to innovation and digital transformation in the face of competitive and socio-economic challenges across its markets.
Net income also witnessed a substantial uptick, surging by 14 percent to reach KD 57 million (USD 187 million). This translates to earnings per share of 13 fils (USD 0.04), further exemplifying Zain Group’s financial resilience and strategic acumen.
A pivotal aspect of Zain Group’s success story lies in its customer base expansion, which recorded a 2 percent increase, culminating in a total of 52.7 million customers across its markets at the close of the April-June quarter. Zain Group’s steadfast commitment to digital evolution is evident in its data revenue, which reached a significant milestone by contributing USD 1.2 billion, accounting for an impressive 39 percent of the Group’s overall revenue.
As part of its strategic growth initiatives, Zain Group invested USD 178 million in CAPEX over the six months, further enhancing its technological infrastructure and market presence. Particularly noteworthy is the substantial progress made in the rollout of 5G services across various markets. In Kuwait, Saudi Arabia, and Bahrain, Zain Group experienced substantial growth in 5G revenues, with Saudi Arabia boasting an expansive 5G network covering over 50 cities and data revenue representing 41 percent of total revenue.
In Jordan, the company continued its commitment to expanding its Fiber-to-the-Home (FTTH) and 4G services, with a soft launch of 5G in select areas. This strategic approach led to a 2 percent growth in data revenue, which now contributes to 49 percent of total revenue. Zain Jordan served 3.8 million customers, marking a 5 percent increase and solidifying its market leadership.
Bader Al-Kharafi, Zain Vice-Chairman and Group CEO, emphasized the impressive performance across all operations as a testament to Zain Group’s dedication to its 4Sight strategy. This strategy centers around driving growth through digital transformation and innovative business ventures, even amid persistent competitive and socio-economic challenges faced by several markets.
Zain Group’s Q2 2023 results underscore its resilience, strategic foresight, and unwavering commitment to pushing the boundaries of technological advancement in the ever-evolving telecommunications landscape. The company’s achievements signify a bright outlook for its future growth prospects as it continues to lead the charge in digital transformation across the Middle East and Africa.