Zain records exciting half year 2008

Leading mobile operator with presence in 22 countries, including the Middle East and Africa, Zain Group, has announced its exciting financial results for the first half of 2008.

The results made available to ITRealms Online at the weekend, showed significant growth recorded in revenues with customer numbers exceeding 50 million.

According to the group’s Chief Executive Officer, Dr. Saad Al-Barrak, the first half of this year, the telco recorded consolidated revenues of US$3.488 billion, an increase of 26 per cent compared to the first half of last year.

The company’s consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), he said, increased by 20 per cent for the same period to reach US$1.305 billion, even as Zain consolidated net profits reached US$551.5 million; an increase of 7 per cent on the first half of 2007 profits.

Year on year customer growth across the two continents where Zain operates, he added, was 58 per cent with the Zain Group serving 50.74 million managed active customers as at 30 June, 2008.

“On the back of splendid results for 2007 and the first quarter of 2008, despite fierce competition in many markets, we are elated that Zain continues its excellent performance in the first half of 2008. Highlighted by crossing the 50 million customer milestone, these impressive results reflect the exceptional operational efficiencies in a company that is investing heavily and rapidly expanding across two continents,” Al-Barrak said.

Stressing that the telco has started to reap the rewards of recent large investments particularly in Iraq, Nigeria and Sudan with these three countries now serving more than half of Zain’s 50 million customers, and they expect similar rewards when the telco in Saudi Arabia and Ghana commence commercial operations.

In a related development, Zain said its also currently testing network in Saudi Arabia with thousands of friendly users and has announced that it will commence commercial operations by the end of August 2008. This follows the successful listing of the group on the Saudi Stock Exchange where its share price is presently trading at double its initial offering.

In addition, Zain said has committed capital investments to date in networks exceeding US$1.5 billion in the Kingdom of Saudi Arabia.

Al Barrak further said the group looks forward to launching its modern network and commercial offerings in the Kingdom, and promised to offer the Saudi community world class telecom services, while also assuring its stakeholders of good return on investments in the Kingdom.

After its widely praised and successful launch in Africa offering customers favourable rates for cross-border communications, Zain had on April 14, 2008 introduced the world’s first borderless ‘One Network’ mobile service to 14 million customers in four countries in the Middle East-Bahrain, Iraq, Jordan and Sudan.

Saudi Arabia and Ghana is expected to join the One Network on launch of commercial services, with plans to roll-out One Network in all its operations, subject to regulatory approvals.


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