Latest news with #BaderAlKharafi
Zawya
17-04-2025
- Business
- Zawya
Zain Group to distribute $492mln cash dividends for FY 2024
Leading telecom group Zain has announced that it has received the investors approval for distribution of total cash dividend of 35 fils for 2024 - amounting to KD151.4 million ($492 million) - thus reflecting an attractive 73% payout ratio. The announcement came at Zain Group's Annual General Meeting (AGM) held at its headquarters in Kuwait, attended with a quorum of 79.2% of shareholders whereby they were presented with the Zain Group's 2024 annual report entitled 'Better Lives, Lasting Connections' which highlights the financial statements, Governance and Auditors reports and the major achievements of Zain Group and its operations and subsidiaries across Middle East and Africa, for the year ended December 31, 2024. The shareholders approved all items on the AGM agenda, including the recommended cash dividend of 25% (25 fils per share) to the shareholders already registered in the company's record date of May 4. Cash dividends will be paid to shareholders commencing May 7. Notably, the Assembly also approved the extension of a minimum 35 fils dividend policy for another 3 years until 2028. According to Zain, this 25 fils dividend for H2 2024 follows the semi-annual dividend of 10 fils distributed earlier in 2024, totaling 35 fils per share for the year and reflecting a 73% payout ratio, one of the highest in the region. Total cash dividends for 2024 amounted to KD151.4 million ($492 million). In 2023, Zain adopted a minimum cash dividend policy of 35 fils per share for three years that has now been extended till 2028. The Kuwaiti teleco said 2024 was a defining year for Zain in growing the business and increasing shareholder value despite socio-economic challenges (primarily Sudan) across the company's footprint. The implementation of numerous ESG initiatives as well as the acceleration of digital transformation and revenue growth from new business verticals have future-proofed Zain and prepared the company for the next phase of growth. During the AGM, Zain Group presented its financial results for the full-year 2024, whereby the company served 49 million customers. For FY-24, Zain Group generated consolidated revenue of KD2 billion ($6.4 billion), up 3% YoY, a 15-year high. Over the past year, Zain has reaffirmed its regional position as an innovative ICT and digital lifestyle provider, playing a major role in shaping digital economies in markets across the Middle East and Africa. Speaking at the AGM, Zain Vice-Chairman and Group CEO Bader Al Kharafi said: "As a leading entity listed on Kuwait's Premier market as well as having local listings in Saudi Arabia (KSA), Iraq, and Bahrain, Zain has an unwavering commitment to drive profitable and sustainable growth, and create value for all stakeholders." "We have succeeded in implementing future-focused strategies to drive forward the evolution of digital ecosystems across the Group's footprint, resulting in us extending our market leadership in many highly competitive, evolving, and complex markets," he added. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Trade Arabia
16-04-2025
- Business
- Trade Arabia
Zain Group to distribute $492m cash dividends for FY 2024
Leading telecom group Zain has announced that it has received the investors approval for distribution of total cash dividend of 35 fils for 2024 - amounting to KD151.4 million ($492 million) - thus reflecting an attractive 73% payout ratio. The announcement came at Zain Group's Annual General Meeting (AGM) held at its headquarters in Kuwait, attended with a quorum of 79.2% of shareholders whereby they were presented with the Zain Group's 2024 annual report entitled 'Better Lives, Lasting Connections' which highlights the financial statements, Governance and Auditors reports and the major achievements of Zain Group and its operations and subsidiaries across Middle East and Africa, for the year ended December 31, 2024. The shareholders approved all items on the AGM agenda, including the recommended cash dividend of 25% (25 fils per share) to the shareholders already registered in the company's record date of May 4. Cash dividends will be paid to shareholders commencing May 7. Notably, the Assembly also approved the extension of a minimum 35 fils dividend policy for another 3 years until 2028. According to Zain, this 25 fils dividend for H2 2024 follows the semi-annual dividend of 10 fils distributed earlier in 2024, totaling 35 fils per share for the year and reflecting a 73% payout ratio, one of the highest in the region. Total cash dividends for 2024 amounted to KD151.4 million ($492 million). In 2023, Zain adopted a minimum cash dividend policy of 35 fils per share for three years that has now been extended till 2028. The Kuwaiti teleco said 2024 was a defining year for Zain in growing the business and increasing shareholder value despite socio-economic challenges (primarily Sudan) across the company's footprint. The implementation of numerous ESG initiatives as well as the acceleration of digital transformation and revenue growth from new business verticals have future-proofed Zain and prepared the company for the next phase of growth. During the AGM, Zain Group presented its financial results for the full-year 2024, whereby the company served 49 million customers. For FY-24, Zain Group generated consolidated revenue of KD2 billion ($6.4 billion), up 3% YoY, a 15-year high. Over the past year, Zain has reaffirmed its regional position as an innovative ICT and digital lifestyle provider, playing a major role in shaping digital economies in markets across the Middle East and Africa. Speaking at the AGM, Zain Vice-Chairman and Group CEO Bader Al Kharafi said: "As a leading entity listed on Kuwait's Premier market as well as having local listings in Saudi Arabia (KSA), Iraq, and Bahrain, Zain has an unwavering commitment to drive profitable and sustainable growth, and create value for all stakeholders." "We have succeeded in implementing future-focused strategies to drive forward the evolution of digital ecosystems across the Group's footprint, resulting in us extending our market leadership in many highly competitive, evolving, and complex markets," he added.
Zawya
16-04-2025
- Business
- Zawya
Zain Group holds AGM with a quorum of 79.2%
RELATED TOPICS TELECOM RELATED COMPANIES Zoi Greek Direct Ooredoo Ihs Kuwait Total Cash dividend of 35 fils for 2024 amount to KWD 151.4 million (USD 492 million) reflecting an attractive 73% payout ratio Osamah Al Furaih: 'Zain's dynamic digital ecosystem is empowering enterprises and government entities across the region' Bader Al Kharafi: 'New business verticals achieved additional revenues of USD 253 million that will be further accelerated by the 4WARD corporate strategy' 2024 revenue reached 15-year high of KD 2 billion (USD 6.4bn), with net income exceeding guidance given to the investor community Larger investments in technology, 5G upgrades and network expansion empowers management's focus on digital transformation, innovation, and operational efficiency Strong revenue growth in Enterprise space powered by ZainTECH and local B2B teams ZOI revenues soared, highest-ranked carrier network in the region and top 100 worldwide Monetization initiatives in Fintech and digital VAS entertainment services driving growth A concerted focus on Sustainability, Inclusion, Diversity and Equity programs Solid Corporate Governance practices result in MSCI upgrading Zain ESG's rating to 'BBB' Zain brand valuation up 14.5% year-on-year (YoY), reaches a milestone of USD 3.5 billion Kuwait City: The Zain Group Annual General Meeting (AGM) was held at the Zain Group's headquarters in Kuwait, attended with a quorum of 79.2% of shareholders whereby they were presented with the Zain Group's 2024 annual report entitled ' Better Lives, Lasting Connections' which highlights the financial statements, Governance and Auditors reports and the major achievements of Zain Group and its operations and subsidiaries across Middle East and Africa, for the year ended December 31, 2024. Additionally, Zain Group released its 2024 Sustainability Report entitled 'The New Paradigm Shift '. The shareholders approved all items on the AGM agenda, including the recommended cash dividend of 25% (25 fils per share) to the shareholders already registered in the company's record date of Sunday, 4 May 2025. Cash dividends will be paid to shareholders commencing Wednesday, 7 May 2025. Notably, the Assembly also approved the extension of a minimum 35 fils dividend policy for another 3 years until 2028. Attractive dividends for Shareholders This 25 fils dividend for H2 2024 follows the semi-annual dividend of 10 fils distributed earlier in 2024, totaling 35 fils per share for the year and reflecting a 73% payout ratio, one of the highest in the region. Total cash dividends for 2024 amounted to KWD 151.4 million ($492 million). In 2023, Zain adopted a minimum cash dividend policy of 35 fils per share for three years that has now been extended till 2028. Solid Financial Performance during 2024 2024 was a defining year for Zain in growing the business and increasing shareholder value despite socio-economic challenges (primarily Sudan) across the company's footprint. The implementation of numerous ESG initiatives as well as the acceleration of digital transformation and revenue growth from new business verticals have future-proofed Zain and prepared the company for the next phase of growth. During the AGM, Zain Group presented its financial results for the full-year 2024, whereby the company served 49 million customers. For FY-24, Zain Group generated consolidated revenue of KD 2 billion (USD 6.4 billion), up 3% YoY, a 15-year high. Consolidated EBITDA for the period reached KD 689 million (USD 2.25 billion), with normalized EBITDA growth of 2% (excluding number range claim in 2023), reflecting an EBITDA margin of 35%. Consolidated net income reached KD 208 million (USD 677 million), representing normalized net income growth of 15%, when adjusted for number range claim and Tower transaction gain in 2023 and gain on business combination from acquisition of IHS (Kuwait TowerCo) in 2024. Earnings per share amounted to 48 fils (USD 0.16). Excerpts from the Board of Directors statement at the AGM The Board of Directors welcomes all shareholders and affiliated parties to the Annual General Assembly of Zain Group. Over the past year, Zain has reaffirmed its regional position as an innovative ICT and digital lifestyle provider, playing a major role in shaping digital economies in markets across the Middle East and Africa. The company's focus has been on enhancing financial inclusion, developing advanced fintech solutions, digital services and building data infrastructure centers. Zain's dynamic digital ecosystem has also focused on catering to meet the growing demand for cloud services, cybersecurity, data analytics, and emerging technologies to empower enterprises and government entities that provide the region's markets with a solid foundation for this digital economy. Zain Group is committed to implementing a solid framework model for corporate governance, with an emphasis on enhancing its comprehensive governance environment. In this context, Zain was crowned World Finance's 'Best Corporate Governance' recipient 2024 for Kuwait for the fourth consecutive year. This excellence was further highlighted by Zain's recent upgrade to BBB in the recently issued Environmental, Social and Governance Standards Index (MSCI ESG). Zain Group's ESG practices are consistently rated highly by S&P, MSCI, and FTSE rating agencies. ESG practices are critical for stakeholders as they reflect the Group's commitment to sustainability, and long-term, responsible management. On behalf of Zain Group Board Members, executive management, and employees, I would like to express our combined sincere appreciation for the confidence shown in us by our valued customers and shareholders, as well as by all the government ministries, and regulatory authorities across our markets of operation. Excerpts from Zain Vice-Chairman and Group CEO, Bader Al Kharafi's AGM statement As a leading entity listed on Kuwait's Premier market as well as having local listings in Saudi Arabia (KSA), Iraq, and Bahrain, Zain has an unwavering commitment to drive profitable and sustainable growth, and create value for all stakeholders. To achieve this, the Board and executive management have worked closely to overcome socio-economic challenges in our markets, where we maximize value creation by investing heavily in our networks, technologies, and people. We have succeeded in implementing future-focused strategies to drive forward the evolution of digital ecosystems across the Group's footprint, resulting in us extending our market leadership in many highly competitive, evolving, and complex markets. From 4SIGHT to 4WARD 2024 witnessed the ongoing implementation of our 4SIGHT digital transformation strategy that delivered significant milestones and solid performances across all our markets, driving sustainable growth and value to our customers and stakeholders. In December 2024, we unveiled the '4WARD-Progress with Purpose' corporate strategy to accelerate the company's evolution into a purpose-driven TechCo conglomerate providing 'Better Lives and Lasting Connections'. The strategy was formulated internally and builds on the significant momentum and transformational accomplishments achieved under the previous 4SIGHT corporate strategy. 4WARD comprises four primary forces, each with three accelerators (thus 12 key accelerators in total) to meet the ever-growing demand for superior and dynamic consumer and enterprise services. These four forces - Customer Delight; Digital Zain; Purpose and Action; and Collaborative Growth - will focus on continuity, acceleration, collaboration and digital innovation, all designed to foster value creation by fast-tracking Zain's evolution from a predominantly mobile centric operator into a purpose driven, customer-centric, future-proof, and impactful leading regional TechCo. We are confident that 4WARD will build on the success of the 4SIGHT strategy and provide the necessary impetus for Zain's continued evolution, growth, relevance, and impact on shaping societies and drive the Zain brand value to even greater heights. CAPEX investments in network expansion and cutting-edge technologies is driving revenue growth and improving mobile and data experience for customers During the year, Zain enhanced its operational capabilities significantly through substantial capital expenditure (CAPEX) amounting to USD 1.1 billion (reflecting 17% of revenues), which primarily focused on expanding the company's 4G and 5G networks, as well as enhancing fiber-to-the-home (FTTH) infrastructure. This has driven revenue growth in profitable areas such as our Enterprise and Government businesses, as well as in our digital services to consumer offerings across our footprint. Our state-of-the-art networks are empowering the spectacular growth of all the new business verticals, including Fintech, ZainTECH, ZOI, FOO and Dizlee, generating additional revenue of USD 253 million in 2024, which reflects revenue growth of 130% YoY. Consolidated data revenue reached USD 2.44 billion, representing 38% of the Group's 2024 revenue. The main impact of our CAPEX investment is the massive enhancement that it provides mobile and data experience for individuals, businesses and government clientele. Numerous achievements of the 4SIGHT strategy (2019-2024) have future-proofed Zain This solid 2024 performance can be attributed to the successful implementation of the '4SIGHT' corporate strategy that was born in 2019 and concluded in December 2024, achieving its aim to transform the company into a multi-faceted provider of digital services for consumers, governments, and businesses. 4SIGHT was based on two strategic directions, centered on evolving Zain's core telecom business to maximize value and leverage the company's many strengths to invest in selected high-growth verticals beyond standard mobile services. Since then, 4SIGHT has successfully steered Zain's transformation from being a mobile-centric company to a multi-faceted organization, successfully transforming its fixed and mobile services, and expanding into several new business verticals including ICT, Digital Mobile Operations, Fintech, Entertainment, Digital Infrastructure, Subsea and Cross-Border Connectivity, and more. Landmark achievements concluded under 4SIGHT among many others include the creation of: 1. ZainTECH: The Group's regional ICT and Digital Solutions arm was established in 2021, positioning Zain as a key player in the digital transformation of enterprises and governments across the region. 2. Fintech: Zain launched fintech offerings across several markets, gaining strong market traction with Tamam, a microfinance play in KSA, Bookey in Kuwait, and Bede in Bahrain, and the revamping of Zain Cash to become a market leader in Jordan and Iraq. 3. Network Tower strategy: This created enormous value through the sale and leaseback deal of Zain towers in KSA, Jordan, and Iraq over the years. The landmark merger of the tower portfolios of Zain and Ooredoo will create the largest TowerCo in the region with over 30,000 towers. In December 2024, Zain increased its 30% ownership in IHS Kuwait Limited to 100%. 4. Zain Omantel International (ZOI): In partnership with Omantel, Zain established ZOI, a regional wholesale powerhouse serving operators, international carriers, and hyperscalers. Notably ZOI was the highest-ranked carrier network in the region, and top 100 worldwide, out of 70,000 active networks. 5. Digital Operators: In KSA, under the Yaqoot brand, in Iraq under the oodi brand, and in Kuwait in partnership with RedBull Mobile, we have cumulatively witnessed impressive customer and revenue growth. By delivering a market-leading app-based experience targeting a younger audience, we provide digital-grade platforms to digitize customer journeys to streamline processes. 6. Dizlee: Zain's Group-wide dynamic API platform and digital monetization ecosystem offers innovative entertainment and gaming solutions, direct operator billing, messaging, and digital authentication. The multiple digital transformational initiatives and expansion of new business verticals achieved under 4SIGHT has driven business growth and positioned Zain firmly as a leading provider of innovative ICT and digital lifestyle services, delivering meaningful connectivity that empowers societies. Zain's Sustainability and climate change efforts are leading the region Zain maintains an unwavering commitment to integrating climate action into its corporate sustainability strategy, which was first announced in 2020, paving the way for a resilient, low-carbon future while addressing the pressing environmental challenges facing the Middle East and North Africa (MENA) region. Building on the foundation of its five-year corporate sustainability strategy, Zain made significant progress in 2024, as it marked a pivotal step in the company's journey toward establishing long-term sustainable value for all stakeholders by accelerating its climate action agenda. Zain submitted and received approval on its Net-Zero targets from the Science-Based Targets initiative (SBTi), reflecting the company's dedication to a Net-Zero economy and making Zain the only Kuwaiti-based corporate to have its emission reduction targets verified by the SBTi. The powerful and admired Zain brand is a key aspect of the company's success Our efforts in every aspect of the business resulted in a 14.5% YoY increase of Zain's brand value to USD 3.5 billion (according to the BrandFinance 2025 rankings), ranking it among the top 25 strongest telecom brands and top 40 most valuable telecom brands globally. The continual growth in our brand valuation and rankings some 18 years after the initial Zain brand launch in September 2007 is testament to the passionate actions, services, and investment the company has placed in establishing its name and identity. The innovative media campaigns, numerous corporate sustainability, inclusion, diversity, and equity (IDE) initiatives Zain has instituted over the years have won us the hearts and minds of our customers and employees, which are key drivers for the Zain brand's value success. Today, we have a social media following exceeding 35 million, and annually, we count over 200 million YouTube views of our creative videos, with many of them going viral. Conclusion On behalf of the executive management team, I would like to extend my sincere thanks to the talented 8,000-strong Zain workforce, our 49 million individual customers and other corporate clientele and government bodies, all of whom contribute to the Zain ecosystem and our success in providing meaningful connectivity to the communities we serve. Our focus for 2025 will be on executing our '4WARD-Progress with Purpose' corporate strategy, accelerating our evolution to a TechCo through investment in network expansion, digital technologies, strategic business opportunities, and talent, in a collaborative and sustainable manner, to ensure the company reaps the rewards of being at the forefront of digital transformation in the ever-growing mobile and ICT sector. This will take the Zain brand to new heights. Please feel free to download the 2024 Zain Group Annual Report and Sustainability Report ( available in digital format.
Zawya
02-03-2025
- Business
- Zawya
Zain Group 2024 revenue reaches 15-year high of KD 2bln (USD 6.4bln)
RELATED TOPICS EARNINGS RELATED COMPANIES Zain Jordan Euro Group Ooredoo MSCI Zain Omantel International Chairman & Zain Group Al Ihsan Charitable Society 2024 annual cash dividend totals 35 fils for 2024, a 73% payout ratio Zain board recommends the renewal of the dividend distribution policy of a minimum 35 fils per share for a period of three-years commencing in 2026 Chairman, Osamah Al Furaih: 'A defining year in growing the business despite socio-economic challenges; the implementation of ESG and operational initiatives have future-proofed Zain' Vice-Chairman & Group CEO, Bader Al Kharafi: 'Financial performance for year exceeded guidance and positioned Zain among top 15 telcos in creating shareholder value over last 5 years' Q4 2024 revenue grew 7% to KD 526m (USD 1.7 bn), net profit soared 120% to KD 72 million (USD235m) Kuwait, KSA, Iraq, Jordan and Bahrain operations deliver strong net-profit growth (normalized) Ongoing crisis and currency devaluation in Sudan continues to impact Group financial KPIs Data revenue grew 1% YoY to reach USD 2.44 billion representing 38% of total revenue Fintech revenue up 19% YoY with transaction volume reaching 25 million, and total transaction value of USD 12.4 bn Overall Enterprise revenue for 2024 grew 8% YoY including B2B Mobility and ZainTECH ZOI revenues soared 455% YoY, highest-ranked network in the region and top 100 worldwide Innovation driving robust revenue growth in digital operators, KSA's 'Yaqoot' and Iraq's 'oodi' Unveiling of new '4WARD' corporate strategy to accelerate company's evolution to a TechCo MSCI upgrades Zain ESG's rating to 'BBB' Zain brand valuation up 14.5% YoY, reaches a milestone of USD 3.5 billion Kuwait City, Kuwait – Zain Group, a leading provider of innovative ICT technologies and digital lifestyle communications operating in eight markets across the Middle East and Africa, serving 49 million customers, announces its consolidated financial results for the full-year 2024 (FY-24), and fourth-quarter (Q4-24) ended 31 December 2024. Group Key Performance Indicators (KD and USD) for the Full-Year 2024 Total Active Customers 49 million Consolidated Revenue KD 2 billion - (USD 6.4 billion) EBITDA KD 689 million - (USD 2.25 billion) EBITDA Margin 35% Net Income KD 208 million - (USD 677 million) EPS 48 fils - USD 0. 1 6 For FY-24, Zain Group generated consolidated revenue of KD 2 billion (USD 6.4 billion), up 3% YoY. Consolidated EBITDA for the period reached KD 689 million (USD 2.25 billion), with normalized EBITDA growth of 2% (excluding number range claim in 2023), reflecting an EBITDA margin of 35%. Consolidated net income reached KD 208 million (USD 677 million), representing normalized net income growth of 15%, when adjusted for number range claim and Tower transaction gain in 2023 and gain on business combination from acquisition of IHS (Kuwait TowerCo) in 2024. Earnings per share amounted to 48 fils (USD 0.16). Board H2 2024 dividend recommendation. The Board of Directors of Zain Group recommended a cash dividend of 25 fils per share for the second half of 2024. This dividend follows the semi-annual dividend of 10 fils distributed in Q4-24, totaling 35 fils per share for the year and reflecting a 73% payout ratio, one of the highest among listed entities in the region and in line with the Board's previously committed minimum cash dividend policy of 35 fils in total, for three years that commenced in 2023 and ends in 2025. Furthermore, the Board made another recommendation to renew the minimum annual cash dividend policy of 35 fils in total, for the forthcoming three years commencing in 2026, subject to Annual General Assembly and statutory approvals. Group Key Performance Indicators (KD and USD) for the Fourth Quarter of 2024 For Q4-24, Zain Group generated consolidated revenue of KD 526 million (USD 1.7 billion), up 7% YoY. EBITDA for the quarter reached KD 184 million (USD 599 million), reflecting an EBITDA margin of 35%. Normalized net income soared 120% to reach KD 72 million (USD 235 million), representing earnings per share of 17 fils (USD 0.05). Key Operational Notes for 4th quarter and 12 months ended 31 December 2024 Throughout 2024, Zain Group invested USD 1.1 billion in CAPEX representing 17% of revenue, mainly on 4G and 5G rollouts, and expansion of FTTH infrastructure and spectrum license fees Consolidated data revenue grew 1% YoY to reach USD 2.44 billion, representing 38% of Group's 2024 revenue Groupwide Enterprise revenue grew 8% YoY due to B2B mobility and ZainTECH revenue growth of 103% YoY Fintech groupwide revenue up 19% YoY, with total transactions value reaching USD 12.4 billion Dizlee (API Platform) revenue up 19% YoY offering over 220 live services from 44 partners, introduces API Marketplace platform Innovation driving robust revenue growth in digital operators, KSA's 'Yaqoot' and Iraq's 'oodi' Zain Omantel International (ZOI) revenues soared 455% YoY, highest-ranked network in region, top 100 worldwide Diversity, Equity and Inclusion programs recognized through several prestigious global awards Social media followers exceed 35 million, YouTube views exceed 200m through appealing, relevant content MSCI upgrades Zain from 'BB' to 'BBB' in ESG 2024 rating Boston Consulting Group ranks Zain in top 15 telcos globally of creating value for shareholders Zain brand valuation grows 14.5% YoY to USD 3.5 billion according to Brand Finance 2025 rankings Commenting on the 2024 full year results, the Chairman of the Board of Directors of Zain Group, Mr. Osamah Al Furaih said, 'It was a defining year in growing the business and increasing shareholder value despite socio-economic challenges across our footprint. The implementation of numerous ESG initiatives as well as the acceleration of digital transformation and revenue growth from new business verticals have future-proofed Zain and prepared it for the next phase of growth.' Regarding the ongoing crisis in Sudan, the Chairman commented, 'W e continue to work closely with our colleagues in Sudan to ensure the community remains connected, while ensuring the safety of our people. We have undertaken many concrete initiatives and invested vast amounts in maintaining the network that sees approximately 1,300 sites operational serving over 10 million Sudani citizens.' The Chairman concluded, 'The Board will continue to invest in network expansion, technologies, strategic business opportunities, and talent to ensure the company reaps the rewards of the ever-growing mobile and ICT sector. I would like to recognize the government bodies in Kuwait and across our markets for supporting the telecom sector and empowering Zain to provide meaningful connectivity to the communities, businesses, and governments we proudly serve.' Zain Vice-Chairman and Group CEO, Bader Al-Kharafi commented, 'Our strong operational and financial performance have exceeded the guidance we provided to the investor community. These robust results are due to the successful implementation of our 4 SIGHT strategy that has positioned Zain among the top 15 global telecom entities in creating shareholder value over the last 5 years. The focus on operational efficiency, digital transformation in better serving customers, the transactions related to passive tower infrastructure, huge investments in 5 G network upgrades, targeting new enterprises and government clients, and the efforts in accelerating the growth of various lucrative business verticals, were instrumental in achieving 2024 strong results. The recently launched ' 4 WARD-Progress with Purpose' will further accelerate our growth and take Zain to new heights.' Regarding the dividend distribution, 'The third consecutive total annual dividend of 35 fils, reaffirms the commitment we made at the beginning of 2023 and provides a strong indication of our healthy balance sheet and financial solvency. ' 'The growth witnessed by the new business verticals born out of the 4 SIGHT strategy (Fintech, ZainTECH, ZOI, FOO and Dizlee) is truly spectacular, generating an additional revenue in 2024 of USD 253 million, that reflects a revenue growth of 130% YoY.' 'Our fintech entities in KSA, Iraq, Jordan, and most recently in Bahrain, as well as our pure digital operators in KSA (Yaqoot) and Iraq (oodi) are witnessing healthy revenue and customer growth. We will continue to expand these lucrative areas of the business across our footprint and look forward to launching fintech services in Kuwait and Sudan later in 2025.' 'The team of ZainOmantel International (ZOI) deserves acknowledgement in positioning the wholesale entity as the highest-ranked carrier network in region, making the top 100 worldwide. This achievement reconfirms its ambition of revolutionize the wholesale telecommunications sector by offering a unique proposition that combines the strengths of both Zain and Omantel to deliver unparalleled service and support to customers worldwide. Both our customers are benefiting from quality internet connectivity, voice, roaming, messaging, and more. We will continue to foster this fast-growing and lucrative business.' 'ZainTECH's revenue growth of 103% YoY and acquisition of several strategic entities in recent years in cooperation with B2B teams across our operations, is driving solid enterprise revenue growth groupwide. This trajectory, bolstered by multiple partnerships with leading global solution providers, has made Zain the connectivity and enterprise partner of choice for enterprises and government bodies across the region. We have ambitious targets on the potential of this line of business and will dedicate the resources to ensure its continued success.' 'Our passive infrastructure strategic ambitions took further steps through the acquisition of the remaining 70 % stake in IHS (Kuwait TowerCo), an independent licensed tower company that owns 1,675 sites, and manages approximately 700 additional sites in the Kuwaiti market. This transaction complemented the strategic agreement with Ooredoo to create the largest tower entity in the region. The aim of our sustainable and independent operating model is to provide passive infrastructure as a service, supporting the reduction of MENA's carbon footprint and empowering the region's digital future. 'The recent approval we received from the Science Based Targets initiative (SBTi) of our Net-Zero targets validates Zain's commitment to climate change, placing the company at the forefront of climate action in the region. As the only Kuwaiti-based corporate to have its emission reduction targets verified by the SBTi, the ESG rating upgrade to BBB by Morgan Stanley Capital International (MSCI) reaffirms Zain's commitment to sustainability, corporate governance and ethical leadership, that is value creative for all stakeholders.' Al-Kharafi concluded, 'BrandFinance's recent valuation of the Zain brand that saw its value increase 14.5% from USD 3 billion to USD 3.5 billion, as well as enhancing its AAA- brand strength rating, is a testament to the investment Zain has placed in establishing its name and identity over the past 18 years. The successful media campaigns, having 35 million social media fans and over 250 million video views annually, the many corporate sustainability, DEI initiatives introduced over the years, combined with our ongoing innovation and investment in network upgrades that result in quality mobile and digital services and exceptional customer experience, has made Zain one of the most inspirational and recognized corporate brands in the region and beyond. ' Financial KPIs of key markets for the 12 months ended December 31, 2024 Kuwait: Zain Group's flagship operation maintained its market leadership, with a customer base of 2.6 million. The Group's most profitable operation saw its full year 2024 revenue grow by 4% YoY to reach KD 373 million (USD 1.2 billion), with EBITDA increasing 6% to reach KD 139 million (USD 454 million), reflecting an EBITDA margin of 37%. For the full year, net income soared 37%, reaching KD 110 million (USD 358 million), driven by an $80 million transaction gain from the step-up acquisition of IHS (Kuwait TowerCo) in Q4 2024. Data revenue represented 35% of total revenue. Saudi Arabia: The operator generated all-time high revenue of USD 2.8 billion up 5% YoY, with EBITDA reaching USD 886 million, reflecting an EBITDA margin of 32%. Normalized net income for the year soared 354% YoY to reach USD 159 million (excluding the one-off gain of SAR 1.1 billion from sale of 8,069 towers recognized during 2023). With its dynamic 5G network covering 66 cities, data revenue for the year grew 5%, representing 40% of total revenue, while customers served stood at 9.3 million, up 4% YoY. Iraq: Revenue grew 11% to reach USD 1.1 billion, with EBITDA amounting to USD 441 million, up 18% YoY, reflecting an EBITDA margin of 41%. Net profit jumped 47% to reach USD 130 million. The operator's customer base grew 10% to reach 19.7 million customers. The key drivers for the operator's impressive results were driven by the continued network expansion combined with the newly launched commercial offers and strong growth in the data segment. Sudan: The continuing crisis and currency devaluation saw the operator's full-year revenue decrease 53% YoY, to reach USD 260 million, EBITDA dropped 58% YoY to reach USD 112 million, reflecting an EBITDA margin of 43%. Net income for the year dropped 47%, reaching USD 116 million. Restoration of dedicated customer service agents, appealing new packages and launch of new digital services saw the customer base reach 10.1 million. A focus on providing coverage to communities saw Zain Sudan restore the network and operate nearly 1,300 network sites, of which notably the operator utilized the Star-Link service for BTSs backhauling that restored more than 100 sites. Furthermore, the operator has diversified its channel distribution, now leading the telecom market in the number of retail shops and digital service facilities with over 150 locations. Jordan: Zain Jordan revenue increased 6% YoY to reach USD 556 million, EBITDA increased 4% to reach USD 224 million, reflecting an EBITDA margin of 40%. Net income for the year increased 3% to reach USD 79 million. With the expansion of 4G, Fiber and launch of 5G services across the country, data revenue grew 8% representing 51% of total revenue. Zain Jordan customer base grew by 6% to reach 4.2 million customers, maintaining its market leadership. Bahrain: The operator generated revenue of USD 205 million, up 7% YoY. EBITDA increased 5% to reach USD 63 million, reflecting an EBITDA margin of 31%. Net income grew 2% to reach USD 15.7 million, with data revenue growing 6% to represent 46% of total revenue. -Ends- About Zain Group: A leading provider of innovative ICT technologies and digital lifestyle communications operating in eight markets across the Middle East and Africa, serving 49 million active customers as of 31 December 2024. With a commercial presence in 8 countries, Zain provides mobile voice, data and B2B services in: Kuwait, Bahrain, Iraq, Jordan, Saudi Arabia, Sudan and South Sudan. Headquartered in the UAE, ZainTECH, the Group's one-stop digital and ICT solutions provider, is playing a key role in the transformation of enterprise and government clientele across the MENA region. Also UAE based, Zain Omantel International (ZOI) is revolutionizing the international telecommunications wholesale landscape as the premier wholesale powerhouse serving regional operators, international carriers, and global hyperscalers. In Morocco, Zain has a 15.5% stake in 'INWI', through a joint venture. Zain is listed on the Boursa Kuwait (stock ticker: ZAIN). We recommend the Investor Community to download the 'Zain Group Investor Relations' Mobile App For more, please email info@ or visit:
Trade Arabia
18-02-2025
- Business
- Trade Arabia
Zain KSA posts record $2.8bn revenue for FY 2024
Zain Group, a leading telecom group in the region, said its Saudi unit has delivered solid results for FY 2024 with an all-time high revenue of SAR10.4 billion ($2.8 billion), compared to SAR9.9 billion ($2.6 billion) in 2023, reflecting a 5% growth. Announcing the financial results for the 12-month period ended December 31, 2024, Zain Saudi said its net profit stood at SAR596 million for 2024 compared to SAR1.26 billion in 2023, which included one-off gain of SAR1.1 billion from sale of 8069 towers recognized during 2023. Adjusting this one-off gain, normalized net-profit grew 354%. ebitda reached SAR3.3 billion ($886 million), a 12% growth YoY, it stated. With the sustained upward financial and operational performance, Zain KSA's Board of Directors recommended to distribute cash dividends of SAR 0.5 per share (5%) to shareholders for 2024, it added. The financial results highlight Zain KSA's operational strategy, focusing on providing the best user experience for individuals and businesses over a powerful 5G network – one of the most advanced in the region – positioning Zain KSA as the digital provider of choice in Saudi Arabia. Consumer and enterprise revenue segments continued to grow during the year, with sustained demand for 'Yaqoot' all-digital service and attaining a high ROI in adjacent businesses, specifically fintech through 'Tamam Finance.' On the results, Zain Vice-Chairman and Group CEO & Zain Saudi Arabia Vice-Chairman, Bader Al Kharafi, said: "This impressive growth in Zain KSA's constantly improving financial results for 2024 are attributed to the team's focus on operational efficiency, digital innovation, new business verticals and expansion of 5G services." "This is supported by the provision of a great customer mobile and data experience that is instrumental in growing its enterprise and individual customer base. Furthermore, the close cooperation and support of the resources of Zain Group is a vital element in Zain KSA's forward trajectory.' Al Kharafi said: "The operation is playing its key role as a major contributor to Saudi Arabia's ICT sector; a position it has earned through vast investments in 5G network expansion and multiple initiatives aimed at further developing Saudi nationals." "Zain KSA's productive relationship with The Communications, Space & Technology Commission, emphasize the company's dedication to supporting the targets of the Kingdom's Vision 2030," he added.
