Zain Group has demonstrated robust growth in Q1 2025, recording a 15 percent increase in revenue, reaching KD 536 million (USD 1.74 billion).
Zain Group’s EBITDA rose by 15 percent to KD 171 million (USD 554 million), maintaining a margin of 32 percent. Net income surged by 66 percent to KD 48.5 million (USD 157 million), highlighting a solid financial performance driven by strategic investments, network expansion, and growing customer base.
Implementation of ‘4WARD-Progress with Purpose’ Strategy:
Zain has introduced its five-year strategy focusing on continuity, acceleration, collaboration, and digital innovation. This initiative is expected to further drive Zain’s transition from a telecom company to a comprehensive technology conglomerate, reinforcing its leadership in digital services and expanding its influence across key markets.
Emphasis on Network Expansion and Restoration:
The restoration and expansion of networks in Sudan played a critical role in the group’s overall performance, with Sudan witnessing 112 percent revenue growth. Additionally, substantial customer acquisition in KSA and Iraq contributed to the Group’s 20 percent growth in customer base.
Investment Overview:
Zain Group invested USD 242 million in Capex (capital expenditure), representing 14 percent of total revenues. This investment primarily focused on network upgrades, 5G expansion, and the development of ICT and digital services, positioning the company to monetize advanced technologies and digital solutions.
Strategic Investment in Emerging Verticals:
Investments in ZainTECH, Dizlee API platform, and Zain Omantel International (ZOI) have significantly paid off, generating USD 191 million in revenue in Q1 2025, marking a 185 percent growth. This focus on emerging digital verticals aligns with Zain’s strategic shift toward digital transformation and enterprise solutions.
Customer Base Expansion:
Zain recorded a 20 percent increase in its customer base, driven by restoration efforts in Sudan and substantial growth in Iraq and KSA. The introduction of new digital services, fintech products, and 5G networks further attracted new subscribers and boosted customer retention.
5G Penetration and Expansion:
With continued 5G deployment in Kuwait, KSA, Bahrain, and Jordan, Zain has solidified its position as a leading 5G provider. The expanding 5G customer base is expected to significantly contribute to future revenue streams as data consumption increases.
Fintech services witnessed a 30 percent revenue increase, with transaction volumes reaching USD 1.7 billion, up 25 percent YoY. This segment is becoming a pivotal component of Zain’s overall growth strategy, particularly with the regional expansion of the Bede brand and expected regulatory approvals in Kuwait.
Kuwait: Revenue rose slightly to USD 303 million. The operator is preparing to launch 5.5G services and aims to grow its postpaid customer base.
Saudi Arabia: Revenue grew by 6 percent to USD 718 million, driven by 5G and B2B growth, along with increased digital and microfinance revenues.
Iraq: Revenue increased by 13 percent to USD 286 million. The customer base grew by 11 percent to 20.7 million, supported by network expansion and new product monetization.
Sudan: Revenue surged 112 percent to USD 107 million, driven by network restoration and a 110 percent rise in the customer base to 11 million.
Jordan: Revenue rose 7 percent to USD 141 million, supported by a 10 percent increase in data revenue.
Bahrain: Revenue increased by 8 percent to USD 56 million, as data revenue grew 4 percent.
TelecomLead.com News Desk
