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Zain records robust Q1 revenues of $1.1bn [Arab Times (Kuwait)](Arab Times (Kuwait) Via Acquire Media NewsEdge) KUWAIT CITY, April 21: Zain Group, the pioneer in mobile telecommunications across the Middle East and Africa, announces its consolidated financial results for the first quarter ended 31 March, 2014. Regarding customers, Zain Group added 2.1 million net additions over the last twelve months to serve 46.2 million as of 31 March 2014, reflecting a 5% growth rate. Zain is the market leader in six of its eight operations by customer numbers. For the first quarter of 2014, Zain Group generated consolidated revenues of USD 1.1 billion (KD 311.1 million) up 4% when compared to the same period in 2013. EBITDA for the quarter reached USD 469 million (KD 132.2 million) compared to USD 448.7 million during Q1-2013, a comparative increase of 5%. Net income for the quarter reached USD 198.4 million (KD 55.9 million), reflecting an 8% increase compared to USD 184.2 million for the same period of 2013. Earnings Per Share for the quarter reached USD 0.05 (fils 14). Key Operational Notes:Consolidated Group data revenues (excluding SMS and VAS) witnessed a healthy 27% growth year-on-year, with data now forming 15% of all Zain's service revenues. Two major loans were announced at the Group level: In early March 2014, the successful closing of a USD 800 million five-year amortizing syndicated revolving credit facility. This development was a resounding vote of confidence from the financial community as 11 leading regional and international banks participated. Additionally, in early April 2014, Zain secured a favorable USD 250 million five-year Murabaha facility, led by Kuwait-based Boubyan Bank and with the participation of Kuwait International Bank and Qatar Islamic Bank. At the Mobile World Congress in Barcelona, Zain announced the publication of a report entitled, The Socio-Economic Impact of Mobile Telecommunication in the MENA Region. The report was completed in collaboration with PricewaterhouseCoopers, and underlines the seriousness with which Zain takes its role as thought-leader and regional innovator, as well as the Group's eagerness to share its experience and insights with the wider community. In Lebanon, the management agreement of mobile operator 'Touch' was extended by three months from 1 April, 2014. Commenting, the Chairman of the Board of Directors of Zain Group, Asaad Al Banwan said: "Zain's ability to increase revenues, EBITDA and earnings year-on-year is a significant achievement in today's environment, reflecting Zain's resilience in dealing competently with the rise in competition and a multitude of other market challenges it faces. With a solid 46.2 million customer base that continues to grow, we are confident the company will continue to flourish and produce positive results." On his part, Zain Group CEO, Scott Gegenheimer noted, "Across many of our markets, we are witnessing growth in key financial indicators as we drive efficiency and innovation. The healthy 27% annual growth rate in data revenues with data now reflecting 15% of all Zain Group's service revenues, emphasizes the appeal and quality of our product and service offerings and justifies the huge investment we continue to make in our 3G and 4G networks." Regarding Zain's operation in Kuwait, the Group CEO welcomed the growth in all key financials indicators considering the highly saturated market conditions present with penetration rates of around 205%. "Zain Kuwait performed exceptionally well during the quarter, with revenue reaching US$313 million, EBITDA reaching US$153 million and net income of US$98 million reflecting year-on-year (Y-o-Y) growth of 9%, 12% and 8% respectively. The appeal and quality of Zain Kuwait's nationwide 4G LTE network is truly differentiating the mobile operator amongst its peers, with data revenues growing by 23% Y-o-Y, representing 31% of the operation's total revenues. The operator also witnessed impressive customer growth of 8% to now serve 2.5 million customers." Zain Iraq also performed exceptionally well in the first quarter of 2014 with revenues of US$432.3 million, EBITDA of US$167.8 million and net income of US$78.3 million reflecting Y-o-Y growth of 3%, 3% and 24% respectively compared to Q1-2013. "The operation performed remarkably well and we expect Zain Iraq to be one of the Group's major growth drivers in all facets of the business during the course of the year. The 18% growth in customer numbers Y-o-Y to reach 16 million bodes well for the on-going development of the company given the imminent granting of 3G spectrum this year. Zain Iraq is the largest contributor to Zain Group's customer base with 35% of all customers and Zain Iraq's revenues represents 40% of total Group consolidated revenues." Additionally, the Group CEO also noted the improved performance from Zain Saudi Arabia. "The transformation efforts by the new management in Saudi Arabia are taking effect, highlighted by the 45% Y-o-Y increase in EBITDA with net losses narrowing by 20% and by 31% compared to Q4, 2013. The operator saw a phenomenal 52% rise in data revenues Y-o-Y reflecting 17% of total revenues as the company expands its state-of-the-art 4G LTE network. The efficiency drive coupled with new commercial strategies is proving successful to date and we are confident that the management in Saudi Arabia will successfully drive the mobile operator towards fulfilling its potential." Other Zain country operational First quarter 2014 highlights:Bahrain: Customer base grew by 13% Y-o-Y and the operation recently launched 4G LTE, which is driving future growth. Data revenues grew 7% with data revenue reflecting 29% of total revenues. Jordan: Despite a highly competitive and penetrated market, Y-O-Y the operation grew its customer base by 5% and net income by 2%. Data revenue growth was a healthy 19% with data revenue reflecting 24% of total revenues. In mid April 2014, Zain Jordan attained frequencies to enhance and expand its third generation network and also to roll-out 4G LTE in the Kingdom, boding well for the operator to provide superior mobile and data services to its customer base going forward. Lebanon: Management contract extended to 30 June 2014 Sudan: Revenues grow by 4% in USD terms with a customer base of 11.9 million at the end of the period. In local SDG currency terms, revenues grew by 8% year-on-year South Sudan: Several challenges resulted in reduction of customer base. (c) 2014 Arab Times Kuwait English Daily. All Rights Reserved. Provided by Syndigate.info, an Albawaba.com company |