Customers up 56%, Revenues up 32%, profits up 11% on 2006
Zain, the leading mobile telecommunications company in the Middle East and Africa, announces today that in the fiscal year 2007 it recorded the highest ever net profits in the history of Kuwait's private sector history.
Zain Group Results for Year End 2007 | |||
USD | 2007 | 2006 | Growth |
Customers (Million) | 42,4 | 27,037 | 56% |
Revenues (Billion) | 5.91 | 4.47 | 32% |
EBITDA (Billion) | 2.56 | 2.04 | 25% |
Net Profit (Billion) | 1.130 | 1.015 | 11% |
EPS (cents) | 61 | 55 | 11% |
Zain recorded consolidated revenues of USD 5.91 billion (KD1.677 billion) for 2007, an increase of 32% compared to 2006. The consolidated EBITDA increased by 25% compared to last year and reached USD 2.56 billion (KD 725.34 million). Zain also announced a milestone consolidated net income of US$1.130 million (KD320.45 million) as compared to US$1.015 million (KD 294.98 million) in 2006 an increase of 11%. Earnings per share stood at US$0.61 (172 fils) as against US$0.55 (159 fils) in the prior year period, an upsurge of 11%.
Active Customers grew impressively and reached 42.4 million (inclusive of 3 million Iraqna customers, acquired on December 31, 2007), an increase of 56% on 2006.
Mr. Asaad Ahmed Al-Banwan, Chairman of Zain "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."
Notably Zain's Board of Directors have recommended a cash dividend of 90 fils per share and a 50% stock dividend (bonus shares) for the fiscal year that ended December 31, 2007. The Board also recommended to increase the company's paid in capital by 75% with a nominal value of 100 fils per share and an issuance premium of 750 fils.
Commenting on the company's 2007 financial results and the Board of Directors recommendations, 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 to 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 license in KSA and the acquisition of Iraqna in Iraq serve as but a few highlights of Zain's remarkable progress in 2007."
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About Zain Group (www.zain.com)
Zain (formerly MTC) is a leading emerging markets player in the field of telecommunications aiming to become one of the top ten mobile groups in the world by 2011. 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 new corporate master brand name. Currently, the company is present in 7 Middle Eastern and 15 sub-Saharan African countries with over 15,000 employees, providing a comprehensive range of mobile voice and data services to over 42.4 million active customers (as at 31 December 2007).
In the Middle East the company operates under the Zain brand name in Bahrain, Iraq, Jordan, Kuwait, and Sudan. In Lebanon the company operates as mtc-touch. Zain plans to commence operations in the Kingdom of Saudi Arabia in 2008.
In Africa, Zain operates under the Celtel brand (www.celtel.com) in 14 sub-Saharan African countries namely: Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Kenya, Malawi, Madagascar, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. The company's mobile telecommunications operations in Ghana will begin in 2008.
The Zain brand is wholly owned by Mobile Telecommunications Company KSC, which is listed on the Kuwait Stock Exchange (Stock ticker: ZAIN). The company had a market capitalization of over US$28.4 billion on 28 January, 2008.
Media Enquiries:
info@zain.com
© Press Release 2008
