Zain earnings are record for Kuwait

Details: Category: Trends & Forecasts; 08 February 2008; 10563 views

Kuwait's private sector has experienced its highest ever net profits posting, thanks to mobile operator Zain...

Kuwait's private sector has experienced its highest ever net profits posting, thanks to mobile operator Zain.

Zain has reported record earnings for 2007 - the highest ever in Kuwait's private sector history. The Middle East- and Africa-oriented company saw its customer numbers grow 56%, revenues 32%, and profits 11% over 2006. Key figures are: customers now at 42 million (27 million in 2006), revenues US$5.91 billion (US$4.47 billion) and net profits US$1.130 billion (US$1.015 billion).

Zain also announced a milestone consolidated net income of US$1.130 million as compared to US$1.015 million in 2006, an increase of 11%. Earnings per share stand at US$0.61 (as against US$0.55), up 11%. It should be added that the active customer figure of 42.4 million includes 3 million Iraqna customers acquired on December 31, 2007). Asaad Ahmed Al-Banwan, Chairman of Zain, notes: "Once again we have seen outstanding success over the course of a year delivering strong and sustainable growth across the board. These impressive results reflect the exceptional operational efficiencies in a company that is rapidly expanding across two continents.”

Commenting on the company's 2007 financial results, Zain's Managing Director and Deputy Chairman, Dr Saad Al-Barrak, said: “On one hand, increasing the company's capital will provide Zain with the liquidity that is necessary to enable it to meet its commitments to its stakeholders according to our ambitious strategy of being a top ten mobile operator by 2011. On the other hand, this increase will play a significant role in reducing the borrowing costs of our operations in the short term and allow us leverage for the future when the right opportunities arise.”

Dr Al-Barrak also added: “The successful rebranding of the company’s master corporate brand to Zain; the introduction of our ACE strategy; the conclusion in completing a 100% share ownership in Celtel; the expansion of “One Network” free roaming services to 12 countries; our successful bid to win the third mobile licence in KSA and the acquisition of Iraqna in Iraq serve as but a few highlights of Zain’s remarkable progress in 2007.”

* Zain (formerly MTC) is an emerging markets player in the field of telecoms aiming to become one of the top ten mobile groups in the world by 2011 in terms of market capitalisation. Zain was established in 1983 in Kuwait as the region’s first mobile operator. Since 2003, it has grown significantly becoming the 4th largest telecommunications company in the world in terms of geographic presence with a footprint in 22 countries spread across the Middle East and Africa. As of 8 September 2007, Zain became the company’s corporate master brand name.