Kuwait Zain Group to pay interim dividend as Q2 net profit rises 17% to $138mln

Currency devaluations in Iraq and Sudan hit revenue

  
A Kuwaiti trader is seen at the Kuwait Boursa stock market trading hall in Kuwait city, Kuwait September 16, 2019.

A Kuwaiti trader is seen at the Kuwait Boursa stock market trading hall in Kuwait city, Kuwait September 16, 2019.

REUTERS/Stephanie McGehee

Kuwait-based Zain Group, a regional telecommunications giant, is set to pay shareholders a half-year dividend of 10 fils per share ($0.03) after it made a net profit of 41 million Kuwaiti dinar ($138 million), up 17 percent compared to the year-ago period.

Revenue for the second quarter came in at 369 million dinars, slightly lower than 378 million dinars in Q2-20 as currency devaluations in Iraq and Sudan cost the group $215 million in revenue.

Data contributed 42 percent to the group revenue, mainly from 5G networks in Kuwait, KSA and Bahrain, Zain said in a statement.

Commenting on the results, vice chairman and group CEO Nasser Al-Kharafi said the interim dividend payment was the first in Zain’s history and “reaffirms the three-year minimum 33 fils dividend policy commitments we made in 2019”.

Meanwhile, Zain KSA, which made a H1-2021 net profit of $22 million, “achieved positive retained earnings after extinguishing all accumulated losses in accordance with its capital restructuring strategy,” the statement said.

(Reporting by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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