The Zain Group Annual General Meeting (AGM) held today at Zain Group’s headquarters in Kuwait approved the recommended cash dividend of 23% (23 fils per share) for the second half of 2021.

 

For the full-year 2021, Zain Group 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 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). 

 

The dividend is payable to the shareholders already registered in the company's record as of April 6, 2022, commencing on April 13, a statement said. 

 

This cash dividend of 23 fils per share follows the semi-annual dividend of 10 fils distributed in the second half of 2021, thus totaling 33 fils per share dividend for the year. This third consecutive payment of 33 fils per share on an annual basis completes the company’s three-year minimum commitment that started in 2019.

 

Zain Group Chairman Ahmed Al Tahous said: “2021 was a successful year in terms of driving shareholder value given the board and management’s focus on operational efficiency, significant investment in network upgrades, while managing the negative effects of the pandemic on our operations. As economic activity across our footprint generally recovers, Zain is well prepared to exploit the multiple opportunities opening as demand for telecommunications services continues to rise by individuals and enterprises alike.  Our 4G and 5G networks, data centres, cloud and other customer facing digital platforms are all future ready and operating at optimal levels.

 

“Zain looks forward to unlocking opportunities brought by the 4th Industrial Revolution, establishing a strong foothold within the government and enterprise sector and providing meaningful connectivity to the communities we serve,” he said. 

 

Zain Vice-Chairman and Group CEO Bader Al-Kharafi said: “The annual dividend payout of 33 fils reflects a 77% payout ratio, one of the highest in the region, providing a clear indication of the strength of Zain’s financial solvency and solid operational performance. It also reflects the company's ability to execute on its profitable growth plans despite the continuing challenges of the pandemic and impact of unavoidable currency devaluations on the business.

 

“2021 was a successful year in terms of driving shareholder value given the board and management’s prudent execution of our sustainability-conscious 4Sight strategy that empowered Zain to be a leading technology innovator. Promoting digital inclusion is of critical importance for governments and businesses at the present time and Zain continues seeking new lucrative business verticals in the digital arena,” he said.

 

Al-Kharafi said Zain Group continues to accelerate investments in new business verticals, being one of the first telcos in the region to provide digital applications and platforms to support enterprises and governments, and it has continually built on that competitive advantage. “We are also creating significant value for shareholders through the unlocking of capital and optimization of infrastructure assets through our tower sale and leaseback strategy.

 

“As we seek out new growth opportunities in a sustainable conscious manner, our priority remains to provide world-class telecommunication services to our valued customers while delivering excellent returns to shareholders and maintaining impeccable corporate governance,” he added. – TradeArabia News Service