Zain Group posts $3.5bn revenue for H1, net profit up 49pc

13/08/2025 03:26 AST

Zain Group, a leading provider of innovative ICT and digital lifestyle communications, operating in eight markets across the Middle East and Africa, has reported exceptional performance for the first half with its revenue soaring to hit KD1.1 billion ($3.5 billion), up 14% over last year, while its net profit surged 49% to hit KD121 million ($395 million).

Announcing its consolidated financial results for the six-month period ended June 30, 2025, Zain said the net profit for H1 includes one-time gain of KD15 million ($50 million) on settlement of legal dispute involving INWI, of which Zain Group is a 15.5% shareholder (via Zain Al Ajial).

The group's H1 2025 earnings per share stood at 28 fils ($0.09), while its ebitda grew 10% YoY to reach KD356 million ($1.2 billion), reflecting a 33% margin.

The leading telecom group said it had served 50.9 million customers at the end of H1, a 7% increase Year-on-Year (YOY), driven by network restoration in Sudan and expansion in Iraq. The data revenue grew 8% YoY to reach $1.3 billion, representing 37% of total group revenue.

On the Q2 results, Zain Group said its revenue grew 13% to reach KD541 million ($1.8 billion) compared to Q2 2024. Ebitda hit KD186 million ($606 million), reflecting a healthy ebitda margin of 34%.

Net income soared 40% to reach KD73 million ($237 million), reflecting earnings per share of 17 fils ($0.05), it stated.

Commenting on solid results, Group Chairman Osamah Al Furaih said: "Our strong performance underscores the productive alliance between the Board and executive management teams of all our entities in delivering our '4WARD-Progress with Purpose' strategy. Our focus on acceleration, collaboration, and digital innovation, alongside our ESG commitments, is having comprehensive impact on sustainable value creation for all stakeholders."

"Moreover, constructive relationships with regulators and key stakeholders are also driving meaningful connectivity across all customer segments," he stated.

"Following this H1 2025 performance and solid financial position, the Board is pleased to declare a fifth consecutive interim dividend of 10 fils per share, in line with our minimum annual dividend policy of 35 fils," he added.

Zain Vice-Chairman and Group CEO Bader Al Kharafi said: "Our outstanding operational and financial performance over the past six months is the result of carefully executed strategic investments in network expansion and AI technologies, combined with disciplined cost optimization and focused monetization of our enterprise, fintech, and digital service portfolios."

"We are committed to sustaining this positive momentum and elevating Zain to even greater heights," he noted.

Al Kharafi said: "Despite fierce competition in our home market of Kuwait - which still delivered solid results - our core operations across all major markets made notable strides. Sudan, Saudi Arabia, and Iraq, in particular, recorded exceptional double-digit net income growth."

"Furthermore, our ICT enterprise arm, ZainTech and our global wholesale carrier, Zain Omantel International (ZOI), performed exceptionally well, as did our fintech and digital service portfolios across multiple markets," he added.

On the performance of its Kuwait market, Zain Group said its flagship and most profitable operation maintained its market leadership position, with a customer base of 2.6 million. Revenue for Q2 reached KD94 million ($306 million) while ebitda reached KD34 million ($111 million), reflecting an ebitda margin of 36%. Net income stood at KD23 million ($74 million).

For the six-months period, net income stood at KD41 million ($132 million). H1' 2025 data revenue grew 2% representing 36% of total revenue.

On Saudi market, Zain said its revenue for the quarter grew 4% YoY to reach $708 million, while ebitda grew 9% to reach $227 million. Net income for Q2 2025 grew 21% to $34 million.

For the six-months period, net income grew 28% to reach $59 million. The operator's 5G-Advanced network boosted data revenue by 4% to represent 40% of total revenue while total active customers served stood at 8.3 million, said the MEA telco giant.

The operator saw significant growth in revenue from the enterprise sector and from its 'Yaqoot' digital operator service. Its fintech arm 'Tamam' is driving financial and digital inclusion across the Kingdom, providing instant approvals for micro-finance loans, continuing its upward trajectory, while breaking historical records on the number and amount of loans disbursed, it added.

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