By John Lee.
Kuwait-based Zain has announced a significant drop in its mobile phone business in Iraq in the first half of 2016.
The exceptional socio-economic circumstances facing the operation saw Zain Iraq’s financial performance hampered, with revenues for the period reaching USD 536 million, a decrease of 11% Y-o-Y, and EBITDA reaching USD 194 million, down 12% Y-o-Y.
Net income amounted to USD 24 million, a substantial reduction of 59% Y-o-Y. Currency variance loss also impacted net income. The operation’s EBITDA margin stood at 36%, with data-related revenues forming 8% of overall revenues for the first half of 2016.
Customers served totalled 11.2 million at the end of June, a 12% decrease.
Zain Group CEO, Scott Gegenheimer (pictured) noted:
“The severe impact of ongoing civil instability in Iraq is a concern for us, both from the perspective of the human suffering that it causes, but also due to the detrimental impact it has on our business.
“The sales tax instituted in the country also had a determined negative effect on our overall financial results, though we remain optimistic that the strategy we have in place is the correct one for our circumstances.”