• Home
• Telecoms & IT
• News Article

Zain announces solid financial results for first nine months of 2011 as net income increases by 7%

Period highlighted by a year-on-year 7% net income increase to US$ 762.5 million with 2.2% increase in revenues to reach US$ 3.6 billion

Group added 6.1 million customers over the past 12 months, a 17% increase. Total active customer base is now 41.4 million

Currency variance losses for nine month period total US$ 100 million

Significant growth in broadband revenues, gap between voice and data revenues diminishing and supporting ARPU levels.

Kuwait, November 1, 2011

*It's important to note that the net profit and profit percentage growth result for the first nine months mentioned below excludes, and does not take into account, the capital gain from the sale of the Zain Africa assets that was concluded on June 8, 2010.

Zain announces today its consolidated financial results for the first nine months of 2011. The results showed solid growth in several key performance indicators.

First Nine Months of 2011 Key Performance Indicators:

Total Managed Active Customers	41.4 million (up 17% on Q3, 2010)
Consolidated Revenues	KWD 988.1 million (US$ 3.582 billion)
EBITDA	KWD 444.4 million (US$ 1.611 billion)
EBITDA Margin	45% (up 1 percentage point)
EBIT	KWD 319.9 million (US$ 1.160 billion)
Net Income	KWD 210.2 million (US$ 762.5 million)
EPS	KWD 0.054 (US$ 0.20)

For the first nine months of2011, the Zain Group recorded consolidated revenues of KWD 988.1million (US$ 3.582 billion), reflecting a positive 2.2% increase on thesame period in 2010. The period saw net income increase to KWD 210.2million (US$ 762.5 million), an impressive 7% increase on the same ninemonth period in 2010. The company's consolidated EBITDA reachedKWD 444.4 million (US$ 1.611 billion) up 4% on the corresponding periodin 2010, reflecting an EBITDA Margin of 45% (up one percentage point)with EBIT of KWD 319.9 million (US$1.160 billion), a 3% increase on thecorresponding period in 2010. The earnings per share reached 54 fils(US$0.20).

Year-on-year customer growth across all Zain operations was 17%. As of September 30, 2011, the company wasserving 41.4 million managed active customers. The Zain Group has added6.1 million new active customers over the past 12 months.

Remarks from both the Chairman and CEO:

Commenting on the results, the Chairman of the Board of Directors of Zain , Mr Asaad Al Banwan said, "Thesesolid results justify the many prudent decisions recently adopted bythe board and the executive management that focus on maximisingshareholder value. Despite intense competition and the lingering effects of the global economic crisis, the continuous growth in several key financial indicators is indicative of the successful operational efficiency drive implemented by the company."

Mr Al Banwan also noted that, "These nine-month results are all the more impressive when one considers that the net profit for the period was adversely affected by currency variances totaling US$ 100 million."

Mr Al Banwan also revealed that the quarter witnessed growth in totalshareholders' equity, to now reach US$ 7.64 billion. This is allthe more impressive when one takes into account that the companydistributed over KWD1.4 billion (over US$5 billion) in dividends overthe past two years.

Zain Group CEO Mr Nabeel Bin Salamah said: "Thecompany has focused on providing customers with a wonderful mobileexperience through significant technology upgrades to our networkscombined with appealing mobile data broadband offerings across many ofour operations. We have seen significantgrowth in broadband revenues particularly as a result of increased useof social networking sites and applications via smart phones andtablets. The gap between voice anddata revenues as a percentage of total company revenues is diminishingand supporting ARPU levels."

In conclusion, Mr Bin Salamahstressed that the Group and country executive management teams arefocused on maximizing shareholder value. "Witha healthy cash balance and reduced debt levels, coupled with an optimalefficiency drive on many levels, the company is well-positioned tocontinue investing in and grow its profitable cash-generativeoperations."

-Ends-

About Zain
Zain is aleading telecommunications operator across the Middle East providingmobile voice and data services to over 41.4 million active customers asof 30 September 2011. With a commercial presence in 7 countries, Zainoperates in the following countries: Bahrain, Iraq, Jordan, Kuwait,Saudi Arabia, Sudan and is currently rolling out its network in SouthSudan. In Lebanon, the company manages 'mtc-touch' onbehalf of the government. In Morocco, Zain has a 15.5% stake in WanaTelecom, now branded 'INWI', through a joint venture. Zainis listed on the Kuwait Stock Exchange (stock ticker: ZAIN). For more,please email info@zain.com or visit:

www.zain.com
www.facebook.com/zain
www.twitter.com/zain
www.youtube.com/zain

© Press Release 2011