Zain Profits Up on Gains in Iraq, Kuwait

By John Lee.

Kuwait-based Zain reported an 8 percent rise in first-quarter profit on Monday, as earnings from Iraq and its domestic business rose. According to the company's report:

"Zain Iraq ... performed exceptionally well in the first quarter of 2014 with revenues of US$432.3 million, EBITDA of US$167.8 million and net income of US$78.3 million reflecting Y-o-Y growth of 3%, 3% and 24% respectively compared to Q1-2013.

"The operation performed remarkably well and we expect Zain Iraq to be one of the Group’s major growth drivers in all facets of the business during the course of the year. The 18% growth in customer numbers Y-o-Y to reach 16 million bodes well for the on-going development of the company given the imminent granting of 3G spectrum this year.

"Zain Iraq is the largest contributor to Zain Group’s customer base with 35% of all customers and Zain Iraq’s revenues represents 40% of total Group consolidated revenues.

Referring to the business as a whole, Zain Group CEO Scott Gegenheimer (pictured) noted:

"Across many of our markets, we are witnessing growth in key financial indicators as we drive efficiency and innovation.

"The healthy 27% annual growth rate in data revenues with data now reflecting 15% of all Zain Group’s service revenues, emphasizes the appeal and quality of our product and service offerings and justifies the huge investment we continue to make in our 3G and 4G networks.

(Sources: Zain, Reuters)

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