Zain Group revenue for 2024 hits $6.4bn; net income up 15pc

03/03/2025 03:50 AST

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, has delivered solid results for FY2024 with a KD2 billion ($6.4 billion) record revenue, up 3% YoY, and also its highest in 15 years.

Announcing its results for the 12-month period ended December 31, 2024, Zain said its net income soared to KD208 million ($677 million), registering 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.

Its consolidated ebitda for the 12-month period hit KD689 million ($2.25 billion), with normalised ebitda growth of 2% (excluding number range claim in 2023), reflecting an ebitda margin of 35%. Its earnings per share amounted to 48 fils ($0.16).

For the fourth quuarter of 2024, Zain Group generated consolidated revenue of KD526 million ($1.7 billion), up 7% YoY.

According to Zain, the ebitda for the quarter reached KD184 million ($599 million), reflecting an ebitda margin of 35%.

Normalized net income soared 120% to reach KD 72 million ($235 million), representing earnings per share of 17 fils ($0.05).

On the performance of its key markets for the 12-month period ended December 31, 2024, Zain gave a brief account. These are:

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 KD373 million ($1.2 billion), with ebitda increasing 6% to reach KD 139 million ($454 million), reflecting an ebitda margin of 37%.

For the full year, net income soared 37%, reaching KD110 million ($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 $2.8 billion up 5% YoY, with ebitda reaching $886 million, reflecting an ebitda margin of 32%. Normalized net income for the year soared 354% YoY to reach $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.

Bahrain
The telecom operator generated revenue of $205 million, up 7% YoY. ebitda increased 5% to reach $63 million, reflecting an ebitda margin of 31%. Net income grew 2% to reach $15.7 million, with data revenue growing 6% to represent 46% of total revenue.

Iraq
Revenue grew 11% to reach $1.1 billion, with ebitda amounting to $441 million, up 18% YoY, reflecting an ebitda margin of 41%. Net profit jumped 47% to reach $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.

Cash dividends
Impressed with the results, the Zain Group's Board of Directors have 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, it stated.

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, it added.

On the solid results, Zain Group Chairman 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," he stated.

"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," he added.

Zain Vice-Chairman and Group CEO Bader Al Kharafi said: "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 4SIGHT 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 5G 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," he added.

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