Zain Group surpasses 50million customer base milestone
Kuwait-listed Zain Group, owners of Celtel Nigeria, has reported a significant growth in revenues with customer numbers exceeding 50 million.
For the first half of 2008, Zain Group recorded consolidated revenues of $3.49bn, an increase of 26 per cent compared to the first half of 2007.
The company’s consolidated earnings before interest, tax, depreciation and amortisation increased by 20 per cent for the same period to $1.305bn.
Zain’s consolidated net profits reached $551.5m, an increase of seven per cent on the first half of 2007 profits.
Year-on-year customer growth across the two continents where Zain operates was 58 per cent with the group serving 50.74 million active customers as at 30 June, 2008.
Commenting on the company’s first half of 2008 financial results, Zain’s Chief Executive Officer, Dr. Saad Al-Barrak said, “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 added, “We have started to reap the rewards of our 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 we expect similar rewards when our operations in Saudi Arabia and Ghana commence commercially.”
Further to Zain’s Saudi Arabia’s listing on the Saudi Stock Exchange and a share price currently trading at double its initial offering, Zain has committed capital investments to date in networks exceeding $1.5bn in the Kingdom of Saudi Arabia.
Currently the operation is testing the network with thousands of friendly users and Zain has confirmed that it would commence commercial operations by the end of August 2008.
“We look keenly forward to launching our modern network and commercial offerings in the Kingdom, promising to offer the Saudi community world class telecom services. We are confident that our investment in the Kingdom will reap rewards for all our stakeholders.” said Al-Barrak.
After its launch in Africa, on April 14, offering customers favourable rates for cross-border communications, Zain introduced its borderless ‘One Network’ mobile service to 14 million customers in four countries in the Middle East namely, Bahrain, Iraq, Jordan and Sudan.
On this, Al Barrak noted “One Network’s preferential offerings, removing borders and high roaming charges, have been warmly welcomed and we expect it will be the catalyst for further growth in customer acquisition as we soon plan to link the two continents.”
Saudi Arabia and Ghana will join One Network on launch of commercial services.
Zain plans to roll-out One Network in all its operations, subject to regulatory approvals.
Zain also announced that the capital increase subscription period (as approved at the annual general assembly meeting in March 2008), would take place between August 17 and September 18, 2008.
This capital increase will raise approximately $4.4bn.
“Zain aspires to be a top 10 global telecom company by 2011 and increasing the company’s capital will provide it with the liquidity necessary to continue its ambitious expansion strategy, while reducing the borrowing costs of the company’s operations and increasing shareholder value in the long term,” concluded Al-Barrak.
For the first half of 2008, Zain Group recorded consolidated revenues of $3.49bn, an increase of 26 per cent compared to the first half of 2007.
The company’s consolidated earnings before interest, tax, depreciation and amortisation increased by 20 per cent for the same period to $1.305bn.
Zain’s consolidated net profits reached $551.5m, an increase of seven per cent on the first half of 2007 profits.
Year-on-year customer growth across the two continents where Zain operates was 58 per cent with the group serving 50.74 million active customers as at 30 June, 2008.
Commenting on the company’s first half of 2008 financial results, Zain’s Chief Executive Officer, Dr. Saad Al-Barrak said, “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 added, “We have started to reap the rewards of our 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 we expect similar rewards when our operations in Saudi Arabia and Ghana commence commercially.”
Further to Zain’s Saudi Arabia’s listing on the Saudi Stock Exchange and a share price currently trading at double its initial offering, Zain has committed capital investments to date in networks exceeding $1.5bn in the Kingdom of Saudi Arabia.
Currently the operation is testing the network with thousands of friendly users and Zain has confirmed that it would commence commercial operations by the end of August 2008.
“We look keenly forward to launching our modern network and commercial offerings in the Kingdom, promising to offer the Saudi community world class telecom services. We are confident that our investment in the Kingdom will reap rewards for all our stakeholders.” said Al-Barrak.
After its launch in Africa, on April 14, offering customers favourable rates for cross-border communications, Zain introduced its borderless ‘One Network’ mobile service to 14 million customers in four countries in the Middle East namely, Bahrain, Iraq, Jordan and Sudan.
On this, Al Barrak noted “One Network’s preferential offerings, removing borders and high roaming charges, have been warmly welcomed and we expect it will be the catalyst for further growth in customer acquisition as we soon plan to link the two continents.”
Saudi Arabia and Ghana will join One Network on launch of commercial services.
Zain plans to roll-out One Network in all its operations, subject to regulatory approvals.
Zain also announced that the capital increase subscription period (as approved at the annual general assembly meeting in March 2008), would take place between August 17 and September 18, 2008.
This capital increase will raise approximately $4.4bn.
“Zain aspires to be a top 10 global telecom company by 2011 and increasing the company’s capital will provide it with the liquidity necessary to continue its ambitious expansion strategy, while reducing the borrowing costs of the company’s operations and increasing shareholder value in the long term,” concluded Al-Barrak.
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