Al-Tahous: The group succeeded in laying solid foundations for building a sustainable digital communications company
Badr Al-Kharafi: “Zain” grows its consolidated revenues by 14 percent, to reach 1.7 billion dinars
– The group enjoys strong cash flows that qualify it to the next stage of growth
– “Zain” recommends a new policy for distributing profits, raising it to 35 fils per share as a minimum for a period of three years.
– 35 fils total cash dividends, higher than last year, representing 78 percent of earnings per share, one of the highest in the region
Profits before interest, taxes and depreciation increased by 7 percent to reach 673 million dinars
Customer base grew by 7 percent to reach 52.4 customers, and data services revenue increased by 5 percent to reach $2.2 billion.
– The group’s continuous investments in digital platforms increased digital services revenues by 52 percent
Zain is leading the development race in building and upgrading telecommunications networks in the region and preparing its infrastructure for 5.5G networks.
Expansion of infrastructure sharing projects is a major pillar of the group’s business strategy
ZainTech is expanding in business and government projects and entering into agreements with international institutions at the regional level
– Zain is achieving great growth in financial technology … and its digital platforms record transactions worth $ 3.6 billion in 2022
The consolidated financial results of Zain Group (listed on the Kuwait Stock Exchange under the symbol:ZAIN ) achieved strong growth in all financial indicators, as the annual financial results recorded a growth in the volume of net profits by 6 percent, to reach about 196 million dinars (640 million dollars), with a profit of 45 fils per share, for the fiscal year ending on December 31, 2022.
The group revealed that the consolidated revenues jumped by 14 percent to reach about 1.7 billion dinars (5.6 billion dollars), and profits before interest, taxes and depreciation increased by 7 percent to reach about 673 million dinars (2.2 billion dollars), and this was reflected in the profit margin before Discount interest, taxes and depreciation by 39 percent.
The most important KPIs for the year 2022:
She stated that data services witnessed momentum during this period, as revenues from data services increased by 5 percent to reach about $2.2 billion, representing 40 percent of the volume of collected revenues, and the group’s customer base recorded a growth of 7 percent, to reach about 52.4 million. Effective customer, this increase is attributed to the group’s customer base gaining 3.5 million during the period.
Zain, the leading company in digital innovations in the Middle East and Africa markets, stated that the growth in the main financial indicators was supported by projects to develop fifth and fourth generation networks and fiber-to-home technology, the expansion of building digital platforms, the growth of the project and business sector portfolio, and the qualitative progress it is making. Solutions provided by the API platform.
The Board of Directors recommended distributing cash dividends of 25 fils per share for the second half of the fiscal year ending on December 31, 2022 (this recommendation is subject to the approval of the General Assembly), and the Board of Directors approved a semi-annual cash dividend of 10 fils per share, bringing the total cash dividends to 35 fils. Fils for the year 2022, (representing 78 percent of earnings per share).
In the meeting held today, the Board of Directors recommended the adoption of a new policy for distributing dividends, as it raised it in its recommendation to 35 fils per share as a minimum for a period of three years, starting from the distributions of the year 2023, which is a step that reflects the strong operational performance and cash liquidity that the group enjoys, especially as it came higher From the first version of the last dividend policy, which was then 33 fils per share (this policy is subject to the approval of the General Assembly).
It is worth noting that the expected total cash dividends, starting from the distributions of the second half of the year, are 25 fils, and the cash dividends for the next three years amount to a minimum of 35 fils for each year, according to the group’s new distribution policy (the total is 130 fils). The return on investment for the current closing price of the share will reach About 8 percent, which is one of the highest investment returns in the region’s markets.
Ahmed Al-Tahous, Chairman of the Board of Directors of Zain Group, said, “The group succeeded in laying solid foundations to achieve its goal of building a sustainable digital communications company. The management is to adopt strategies that give priority to services designed in a way that enables us to benefit from the acceleration of the adoption of digital services, and to rely on our knowledge gained in providing quality and reliable services to our customer base.
Bader Nasser Al-Kharafi, Vice Chairman and CEO of Zain Group, said, “Zain Group continues to expand in digital transformation projects, upgrade and modernize networks, and deploy fiber optic networks. In building and upgrading telecommunications networks in the region, as it continues to equip its infrastructure for next-generation (Generation) networks.G5.5) To ensure reliable, speedy, accurate and predictable communications services, the company is proud to have become an integrated communications company after the progress made in its business strategy.
Al-Kharafi explained that the consolidated financial results reflect the positive developments witnessed in the group’s business portfolio. At the level of data and digital services, the group’s performance was strong for this period, as data revenues grew by 5 percent, reaching $2.2 billion. Digital services revenues increased by 5 percent. 52 percent, and the revenues of business projects sector services grew (B2B) increased by 28 percent.
Al-Kharafi said, “With the recommendation of the Board of Directors to distribute cash dividends of 25 fils per share for the second half of the year 2022 – after the distribution of 10 fils for the first half, the total cash dividends amount to 35 fils for the year 2022, at a rate of 78 percent of net profits, which is among the highest. rates in the region – and this reflects the strong operating performance of our operations, the strength of our financial solvency, and healthy cash flows that qualify us for the next stage of growth.”
He continued, saying, “Strategic initiatives have made qualitative progress in new areas of growth, as Zain is currently playing an influential role in providing digital solutions to institutions and governments, pioneering infrastructure sharing projects in the region, and finally opening new horizons for wholesale sales and cable systems, and expanding platforms.” FinTech, and has also successfully completed the standardization of API platforms for its business.”
He added, “The emerging challenges in the telecommunications industry forced us to enhance our competitive capabilities to provide our customer base with greater value, and to acquire distinguished locations that are closer and more connected to customers. and data applications.
And he stated, “Zain continues its efforts to provide a stable and reliable connection that provides the latest broadband connections, as the group realizes that a high-quality and secure broadband connection will accelerate digital transformation projects, so it continued to pump its investments in the region’s markets, as capital expenditures amounted to 936 Millions of dollars, the majority of which came from fifth-generation development projects in Kuwait, Saudi Arabia, and Bahrain, upgrading fourth-generation networks in Iraq, Jordan, Sudan, and South Sudan, and expanding fiber-to-the-home infrastructure, in addition to extending the licenses of Zain Jordan for 10 years. Obtaining a fifth generation license.
Regarding the technological developments of the group’s operations, Al-Kharafi said, “The group succeeded in launching the virtual open radio access network for the fourth and fifth generations.” (Open cRAN) In Kuwait, in a technological precedent of its kind in the region’s markets, it is expected to support the virtual open radio access network (Open cRAN) The use of fourth and fifth generation networks, as telecom network operators will be able to launch services quickly and with better efficiency.
He stated that the group launched in Kuwait and Jordan the next generation of “fiber-to-the-home” technology (FTTR), and became the first operator to provide this technology, and the group in Bahrain also deployed the latest network 5G Massive MIMO Wireless to reduce energy consumption by 15 percent, and thus became the first telecom company to deploy these solutions in the Middle East and Africa.
He continued, “The group has expanded in infrastructure sharing projects, as it considers it a major pillar in its business strategy, as Zain Saudi Arabia concluded an agreement to sell and lease back its towers and share idle assets with the Public Investment Fund alliance at a value of $807 million. This agreement indicates the confidence it enjoys.” The company has investment and economic institutions, and finally Zain Iraq succeeded in concluding a sale and leaseback of its towers and the sharing of idle assets with a company TASC Tower Iraq 180 million dollars.
revealed that Inc ZainTech It has succeeded in acquiring Bios Middle East, and this deal is expected to give us a strong boost in revenues related to cloud services and integrated solutions, in which the company is expanding in the scope of business and government projects services at the regional level. ZainTech During this period a strategic cooperation agreement with other international institutions such as Amazon Web Services AndOracle.
In terms of financial technology, Al-Kharafi explained, “The group is achieving growth in its financial services platforms, as the customer base of financial technology services grew by 64 percent, and revenues increased by 241 percent, as the group’s platforms increased the momentum of its operations in the region’s markets, as it recorded transactions worth 3.6 billion. Dollars in the year 2022, and in Kuwait, the company is awaiting the outcome of the application to obtain a license to operate the digital bank.
He revealed that Global Connect is expanding in managing capacity, voice, roaming and cable business in the region’s markets, as it has succeeded in obtaining approvals for a cable landing station in Sudan and a submarine cable landing station. Africa1Note that the company made the first investment in PEACE cable through the J2M submarine cable system (Jeddah, to Marseille), and expansions in this sector will contribute positively to increasing revenues and reducing costs.
“The API platform succeeded – rebranded as Dizli (Dizlee) – in attracting more customers, through partnership with 25 One of the global solutions providers, and services OTTwith 51 An innovation for digital entertainment, during this period the platform succeeded in processing more than 191 million payment transactions since its launch.
Al-Kharafi pointed out that the company Zain Sports It continues its regional leadership in the region after it launched a platform PLAYHERA MENAIt is a joint venture between Zain Group and Zain Saudi Arabia PLAYHERAuntil now, staged Zain Sports About 28 major competitions, with the participation of 30,000 e-sports fans, garnered 70 million interactions on social media.
The group shows a strong commitment to achieving a comprehensive governance environment within its operations, and applying a sound corporate governance framework in line with applicable laws, regulations and practices. in the meetings.
The Zain brand was included in the global list of “Best Employers” issued by the American business magazine Forbes for the second time, as the group topped the Kuwaiti market as the best employer, and maintained its position in the list of the 10 best employers in the Middle East markets.
The Zain Group owes a great deal of its success to integrating sustainability into its business decisions, as it effectively contributes to enabling societies to obtain broad social and economic benefits in the areas of education, health and the economy. Finally, Zain joined the United Nations Global Compact initiative, which is a platform for voluntary leadership to develop and implement practices Responsible business, as well as a clear effort to address climate change, in order to achieve a “net zero emission” economy.
And takingThe group is working on building constantly evolving lists in the work environment, to ensure the provision of skills that are compatible with a workplace characterized by constant change. It has finally succeeded in the first launch of its initiative.WE SUCCEED“, of the Middle Management Succession Planning Program, which is an innovative program that builds on years of research in the areas of ‘adaptability’ to allow self-awareness, especially with regard to people’s basic mindsets during exposure to any stress, and this program also provides participants with With tools to deepen the methods and means of communication and encourage the creation and empowerment of safe work teams on the psychological level.