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Zain net profit zooms up 17% in Q2 2021

Business Kuwait City 15 Jul 21
Zain net profit zooms up 17% in Q2 2021
Zain group reports a sizable 17% year-on-year increase in Q2 net profit to 41 million Kuwaiti dinar (US$138 million).
Fee
Event Location
Kuwait, Kuwait
Area
Kuwait City
Start Time
15 July 2021, 12:00 AM
End Time
31 July 2021, 12:00 AM
Website

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.

For the first six months of 2021 (H1) Zain Group generated consolidated revenue of KD 750 million ($2.5 billion), a decrease of 3 percent Y-o-Y. EBITDA for the period reached KD 310 million ($1.03 billion), down 6 percent Y-o-Y, reflecting an EBITDA margin of 41 percent. Net income amounted to KD 86 million ($285 million), up 5 percent Y-o-Y, reflecting earnings per share of 20 fils ($0.07).

In the second quarter of 2021 (Q2), Zain Group generated consolidated revenue of KD 369 million ($1.2 billion), remaining relatively stable compared to the prior period. EBITDA for the quarter reached KD 152 million ($506 million), down 5 percent Y-o-Y, reflecting an EBITDA margin of 41 percent. Net income for the quarter amounted to KD 41 million ($138 million), up 17 percent Y-o-Y, reflecting earnings per share of 10 fils ($0.03).

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.

Kuwait business news 2021Kuwait Zain net profit Q2 2021