Page 28 - SAMENA Trends - February 2020

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

Zain Group’s 2019 Revenues Up 26% Y-o-Y to KWD1.6Bn

developments to the consolidation of saw its customer base decrease 2%
Zain Saudi Arabia, offsetting losses y-o-y to serve 15.7 million users
of USD140 million in revenues, USD61 at end-December 2019, while the
million (EBITDA) and USD20 million user base in Jordan contracted by
(net income) due to a 30% currency 3% to 3.6 million. Mr. Bader Nasser
devaluation in Sudan. The company Al-Kharafi, Zain Vice-Chairman and
booked a net profit of KWD217 million Group CEO, commented: ‘Our Group
in the twelve months under review, financial performance across all
up 10% y-o-y, mainly due to growth operations, especially the robust
in net profit at Zain Saudi Arabia (up profit growth in Saudi Arabia,
46% y-o-y to SAR485 million [USD129 Iraq and Sudan operations, and
million]) and Zain Iraq (up 28% y-o-y). sound performance by our highly
In operational terms, Zain Group profitable Kuwait operation, tops
reported a consolidated customer off an incredible operational year
base of 49.5 million at 31 December and gives us enormous confidence
2019, up 1% y-o-y. In Kuwait going into 2020 and beyond. Our
subscribers increased 1% y-o-y to 4Sight strategy is taking shape,
Kuwait-based telecoms group Zain has published its 2.8 million, while the Saudi Arabian building on our many strengths while
consolidated financial results for the twelve months unit served 7.6 million subscribers seeking value-creating new business
ended 31 December 2019, reporting a 26% increase (down from 8.1 million in Q4 2018). verticals that support our vision of
in revenues year-on-year to KWD1.6 billion (USD5.5 Zain Sudan’s subscriber base stood becoming a leading ICT and digital
billion), while EBITDA increased 40% annually at 15.9 million at 30 December 2019, lifestyle provider that makes the
to KWD728 million. Zain attributed the positive up 9% y-o-y. Zain Iraq, meanwhile, world a better place.’

A Regional First: Zain Concludes Sale and Lease Back of Its Telecom Towers
in Kuwait to IHS for US$130 Million

In a regional first, Zain Group, the technology and intellectual property with in becoming a digital lifestyle provider
leading mobile telecom innovator in respect to managing its network. The through optimizing service delivery and
eight markets across the Middle East transaction has been formally approved by enhancing customer experience.” Al-
and Africa, announces that its flagship Kuwait’s Communication and Information Kharafi added, “I’m very proud of the Zain
operation in Kuwait has completed Technology Regulatory Authority team for its professionalism in completing
the sale and leaseback of the passive (CITRA), whose pro-active policies for this first agreement of its kind in the MENA
physical infrastructure of its 1,620 mobile the telecom sector are in line with new region. I’m also very appreciative of the
tower portfolio for US$130 million (KD 40 Kuwait Vision 2035. Furthermore, the deal positive support of both CITRA and KDIPA
million) to IHS Holding Limited (IHS). The was championed by the Kuwait Direct which were instrumental in making this
transaction is the first sale and leaseback Investment Promotion Authority (KDIPA), deal happen. We are confident we have
of telecom towers in the Middle East which played a key role in attracting the chosen the right partner in IHS, a company
region by a licensed mobile operator. foreign investment and facilitating the that possesses high caliber expertise with
The transaction valuation was aimed at transaction process. Bader Al-Kharafi, sound operational experience in diverse
helping Zain to maximize efficiency in Vice-Chairman and Group CEO of Zain markets.” Sam Darwish, Chairman and
its operating model, taking into account said, “This historical transaction unlocks Group CEO of IHS commented, “We are
future lease terms and the expansion of value for shareholders as it gives us greater delighted to have successfully concluded
5G towers across Kuwait. Under the terms flexibility to focus on higher yielding this transaction with Zain and look forward
of the transaction, Zain is selling only its digital investments, 5G expansion and to a long and successful partnership over
passive, physical infrastructure to the new operational efficiencies in Kuwait. It also the coming years in Kuwait and potentially
entity and will retain its intelligent software, supports Zain’s transformational strategy beyond.”

28 FEBRUARY 2020