Zain Reports Q1

Middle East revenues up by 11 percent to $1.15 billion year on year; net profit reaches $179 million

May 13, 2010

1 Min Read

KUWAIT -- Zain announces today its consolidated financial results for the quarter ended 31 March, 2010.

For the first quarter of 2010, the Zain Group recorded consolidated revenues of KWD 329.7 million (US$ 1.146 billion), an increase of 11% compared to same period in Q1-2009. The Company’s consolidated EBITDA reached KWD 139.2 million (US$ 483.7 million), EBIT of KWD 99.4 million (US$345.6 million) and net income reaching KWD 51.55 (US$ 179.1 million).The earnings per share reached 13 fils (US$0.05).

Commenting on the results, the Chairman of the Board of Directors of Zain, Mr Asaad Al Banwan said: “These results reflecting the Middle East operations are in line with adopted International Accounting Standards, which necessitates excluding all of Zain Africa’s 15 mobile operations, except for net profit, as the company entered into a definitive sale agreement with Bharti Airtel on March 30, 2010.”

Mr Al Banwan added, “Despite the economic crisis and the competitive markets in which we operate, we are extremely pleased with the 11% revenue increase which is in line with our expectations.”

He further stated, “The organic growth of the EBITDA and Net Income results is all the more impressive when one takes into account that in the same period last year (Q1-2009) we had several reversals of provisions including a favorable ruling resulting in an extraordinary gain of KWD33 million (US$116 million). This is an indication that EBITDA and Net Income growth in Q1, 2010 would have been much higher than stated, as without such provision reversals, the company would have had a respective growth of 14% in EBITDA and 24% in Net Income.”

Zain Group

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