Zain registers $616m net profit for 2021; revenue hits $1.3bn
CONSTRUCTION NEWS
Zain Group, a leading telecom innovator in seven markets across the Middle East and Africa, ended 2021 strongly with a net profit of KD186 million ($616 million) along with a customer base of 48.9 million and KD382 million ($1.3 billion) in revenue.
Announcing its consolidated financial results for the full-year 2021, Zain said it had generated consolidated revenue of KD1.5 billion ($5 billion), a year-on-year (Y-o-Y) decrease of 5%.
Consolidated ebitda for the period declined by 5% Y-o-Y, to reach KD628 million ($2.1 billion), reflecting an ebitda margin of 41%.
Consolidated net income reached KD186 million ($616 million), up 2% Y-o-Y and reflecting earnings per share of 43 Fils ($0.14).
For the full-year 2021, currency devaluations in Sudan from 55 in January 2021 to 436 (SDG/USD) end of December 2021; in South Sudan from 175 in January 2021 to 426 (SSP/USD); and a 19% currency devaluation in Iraq from 1,190 to 1,470 (IQD/USD) resulted in a foreign currency translation impact of $962 million in revenue and $479 million in ebitda.
The Group ended the year with a customer base of 48.9 million, an annual increase of 2.4%, reflecting an addition of 1.2 million customers.
Impressed with the results, the board has recommended a cash dividend of 23 fils per share for the second half of 2021, subject to Annual General Assembly and statutory approvals.
This dividend follows the semi-annual dividend of 10 fils distributed earlier in 2021, totaling 33 fils per share for the year.
On the Q4 performance, Zain Group said it had generated consolidated revenue of KD 382 million ($1.3 billion), down 11% Y-o-Y.
Ebitda for the quarter amounted to KD150 million ($496 million), down 12% Y-o-Y, reflecting an ebitda margin of 39%. Net income for the period amounted to KD50 million ($167 million), down 5 % Y-o-Y, representing earnings per share of 12 fils ($0.04).
The major achievements for 12-month period ended December 31 are:
*The year highlighted by the notable customer growth from 5G in Kuwait, Saudi Arabia and Bahrain, and 4G uptake in Iraq, Jordan and Sudan, resulting in the Group’s consolidated data revenue reaching $2.1 billion, representing 42% of the Group’s revenue for 2021
*Throughout 2021, Zain Group invested $1.1 billion in CAPEX (21% of revenue), predominantly in 5G rollouts in Kuwait,Saudi Arabia and Bahrain; 4G upgrades across Iraq, Jordan, South Sudan and Sudan; expansion of Fiber-to-the-Home infrastructure; and spectrum license fees
*Zain’s operation in Jordan completed the sale and leaseback of 2,607 towers for $88 million
*Zain KSA fintech, ‘Tamam’; ZainCash in Iraq and Jordan; M-Gurush in South Sudan attract 1.5 million customers recording over 25 million transactions with a value of $2.3 billion in 2021
*Launch of ZainTech, unifying the Group’s ICT assets under one roof to provide comprehensive digital solutions and transformation services to enterprises and governments across the region
*Zain Ventures invests in ZoodPay, ‘Buy Now Pay Later’ super app’s series B round, following earlier investments in PIPE and Swvl
*The growth of Zain Esports saw it hold 16 tournaments in 2021, with 18,000 gaming participants, 43 million social media impressions and 5.7 million engagements on social media channels
*The Zain Group API platform grows, partnering 16 global OTT and solutions providers offering 36 different digital innovations and processing 130 million payment transactions since launch in 2018.
*Zain upgraded to A- in the latest ‘CDP Score Report–Climate Change 2021’, ranking it first in the region and among leaders globally and
*Zain named Best Telecom Brand for 2021 by Telecom Review
Commenting on the results, Chairman Ahmed Al Tahous said: "The board and management’s focus on operational efficiency, significant investment in network upgrades, and meticulous execution of key elements of our sustainability-conscious 4Sight strategy continues to drive shareholder value."
"I would like to thank all the government bodies and regulatory authorities across our markets for their support and wisdom in creating an environment to raise the telecom sector to new heights and empower Zain to enhance the meaningful connectivity we provide the communities, businesses and governments we serve," stated Al Tahous.
Vice-Chairman and Group CEO Bader Al Kharafi said: "The Group’s solid performance for 2021 reflects the success of the many operational and monetization initiatives implemented by the management across all markets."
"The board’s recommendation of 23 fils per share dividend for H2 in addition to the semi-annual 10 fils dividend, totaling 33 fils for the year, reflects a 77% payout ratio, one of the highest in the region," he noted.
This provides a clear indication of the strength of our financial solvency, and the company's ability to execute on its strategic profitable growth plans, despite the continuing challenges of the pandemic and impact of unavoidable currency devaluations on the business.”
“We continue to manage significant currency devaluations in Iraq and Sudan, which impacted key financial indicators during 2021, costing the company $962 million in revenue and $479 million in ebitda. To mitigate this impact, we have revamped prices and focused on monetizing new digital services while seeking lucrative opportunities in the enterprise space to capitalize on 4G rollouts in these countries,” he added.-TradeArabia News Service
