Kuwait - Mubasher: Zain's Vice Chairman and CEO Bader Nasser Al-Kharafi said that the company has succeeded in achieving financial indicators higher than its estimates for 2024 , as capital expenditures amounted to $1.1 billion, most of which were in 4G and 5G network upgrade projects and infrastructure modernization .

Bader Nasser Al-Kharafi added that the group’s fintech revenues recorded a growth of 19%, with total transactions reaching $12.4 billion, as the company expanded into new markets, following the successful launch of the unified Bede brand for micro-consumer finance services in Bahrain, according to a statement on Sunday.

He added that the group continued its strong performance by maintaining good cash flows, and the exceptional performance of the group's operations highlights its success in implementing its strategy in recent years, as the strategy strengthened the group's tributaries and laid the foundations for building a sustainable digital provider, according to a statement.

Al-Kharafi explained that the strong performance reinforced Zain’s commitment to its shareholders, as the Board of Directors recommended distributing cash dividends worth 25 fils for the second half of the year, bringing the total cash dividends to 35 fils for the year 2024 (representing 73% of earnings per share).

He added that this percentage is one of the highest rates of investment returns in the region, and thanks to its financial solvency, the strength of its financial position and its commitment to its cash distribution policy, Zain was ranked among the best companies in achieving returns on shareholders’ equity in the telecommunications sector worldwide.

Al-Kharafi said that the group continues to reap the benefits of expanding the business of the technology entities it established (New Growth Engines), as it achieved an increase this year of $253 million over the level of revenues achieved in 2023, with a growth rate of 130%.

Zain Tech has succeeded in expanding in the projects and business sector, and entering into more international strategic partnerships, as the company’s revenues increased by about 103%, this growth is primarily due to the strong growth in the projects and business sector, and the integration of the operations of new entities.

Kuwait

Zain Kuwait’s operating revenues grew by 4% to KWD 373 million ($1.2 billion), while EBITDA increased by 6% to KWD 139 million ($454 million), reflecting an EBITDA margin of 37%.

Net profit also increased by 37% to KWD 110 million ($358 million), driven by the $80 million gain from the acquisition of the remaining IHS ownership in Q4 2024. Data revenue represented 35% of total revenue, and the customer base reached 2.6 million.

Saudi Arabia

Zain Saudi Arabia recorded revenues of $2.8 billion, up 5% (the highest in its history since inception), and earnings before interest, taxes, depreciation and amortization reached $886 million, reflecting an earnings before interest, taxes, depreciation and amortization margin of 32%.

Adjusted net profit increased 354% to $159 million (excluding one-time gains of SAR 1.1 billion from the sale of 8.07 towers recognized in 2023), and with a dynamic 5G network covering 66 cities, data revenue for the year grew 5%, representing 40% of total revenue, and customer numbers reached 9.3 million, up 4%.

Iraq

The company's revenue increased by about 11% to reach $1.1 billion, and earnings before interest, taxes, depreciation and amortization grew by 18% to reach about $441 million, reflecting an earnings before interest, taxes, depreciation and amortization margin of 41%, and net income jumped by 47% to reach $130 million.

The customer base reached 19.7 million customers. The strong performance of the company's operations is due to the continuous expansion of the network, new commercial offerings, and significant growth in the data sector.

Sudan

The annual financial results in Sudan were affected by the current difficult conditions, as annual revenues decreased by 53% to reach $260 million, and earnings before interest, taxes, depreciation and amortization decreased by 58% to reach $112 million.

EBITDA margin was 43%, net profit decreased 47% to $116 million, and the customer base reached 10.1 million customers.

Zain Sudan also focused on providing coverage to local communities, which led to the restoration of the network and the operation of approximately 1,300 sites. The company used the Star-Link service to restore the base stations, which restored the operation of more than 100 sites. It also diversified its distribution channels, and is now the leader in the number of retail stores and digital service channels with more than 150 sites.

Jordan

Zain Jordan’s revenues increased by 6% to reach $556 million, and EBITDA reached $224 million, reflecting an EBITDA margin of 40%. Net profit increased by 3% to reach $79 million.

The statement added that with the expansion of 4G services and the launch of 5G services across the regions, data revenues grew by 8% to represent 51% of total revenues, and Zain Jordan’s customer base grew by 6% to reach 4.2 million customers, maintaining its leading position in the market.

Bahrain

Revenue was $205 million, up 7%, EBITDA increased 5% to $63 million, reflecting an EBITDA margin of 31%, and net income grew 2% to $15.7 million, with data revenue growing 6% to represent 46% of total revenue.