Zain Revenue up 56% to Reach $1.33Bn; Profit Rises 15% in Q1 2019 to Reach $155M EBITDA Grows 111% in Q1 • 50 Million Customers Served
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FREE Established 1961 Friday ISSUE NO: 17823 SHAABAN 28, 1440 AH FRIDAY, MAY 3, 2019 Mixed use Sabah Al-Salem France, Italy mark 500th Captain Messi showing 4 needs attention, residents say 21 ’versary of da Vinci death 47 Barcelona the way Zain revenue up 56% to reach $1.33bn; profit rises 15% in Q1 2019 to reach $155m EBITDA grows 111% in Q1 • 50 million customers served KUWAIT:Zain Group, a leading mobile telecom innovator in eight markets across the Middle East and Africa, announces its consolidated financial results for the first quarter (Q1) ended 31 March, 2019. Zain served 50 million customers at the end of the period, reflecting a 6 percent increase year- on-year (Y-o-Y). Zain Group generated consolidated revenues of KD 404 million ($1.33 billion) for the first quarter of 2019, up 56 percent compared to the same period in 2018. EBITDA for the quarter reached KD 178 million ($586 million), up 111 percent Y-o-Y, reflecting an EBITDA margin of 44 percent. Net income for the quarter reached KD 47 million ($155 million), up 15 percent Y-o-Y reflecting Earnings Per Share of 11 fils ($0.04). Commenting on the results, Chairman of the Board of Directors of Zain Group, Ahmed Al-Tahous said: “The impressive first quarter 2019 results were achieved through the board’s and executive management’s focus on imple- Zain Vice-Chairman and Group CEO Bader Al-Kharafi Zain Group Chairman Ahmed Al-Tahous mentation of the digital transformation strategy that has seen substantial investments in network upgrades, fiber lucrative opportunities in driving the business forward and transformational and digitization efforts, supported by the optics and 5G readiness. These initiatives have been aimed increasing shareholder value.” group. This has resulted in sound operational progress and the at diversifying income sources primarily from digital-relat- Vice-Chairman and Group CEO, Bader Al-Kharafi said: reporting of robust results in key markets, highlighted by the ed areas and at the same time improve customer experi- “Given the sweeping technological developments in the ICT vastly improving profitability in our home market of Kuwait and ence. We will continue driving cost optimization initiatives sector and challenging regulatory environment, the manage- even more impressively in our Bahrain, Iraq and Saudi Arabia to improve the efficiency of the operations and seek new ment teams across all operations are being dynamic in their operations.” (See Page 39) Group Key Performance Indicators (KD and USD) for Q1, 2019 • EBITDA for the quarter grew by 111% to reach KD 178 million Total Active Customers 50 million • Consolidation and strong performance of Zain KSA bolsters Group financials for Q1 ‘19 Consolidated Revenues KD 404 million - (USD 1.33 billion) • Net income growth of 11% in Kuwait, 55% in Bahrain and 77% in Iraq also highlight Q1 EBITDA KD 178 million - (USD 586 million) • Data revenue grew by 118% Y-o-Y, representing 37% of Group revenue EBITDA Margin 44% • Chairman, Ahmed Al-Tahous: “The Board is focused on implementation of strategic growth plans to increase shareholder value” Net Income KD 47 million - (USD 155 million) • Vice-Chairman & Group CEO, Bader Al-Kharafi: “Profitable growth across all key operations due to ongoing digital transformation EPS 11 fils - USD 0.04 and efficiency initiatives” 2 Friday Local Friday, May 3, 2019 PHOTO OF THE DAY KUWAIT: This photo shows a portion of the Sheikh Jaber Causeway, which was officially inaugurated on Wednesday. The nearly 36-kilometer-long causeway shortens the driving time between Kuwait City and Subiya to less than 30 minutes, as opposed to 90 minutes through the regular 104-kilometer-long route. — Photo by Yasser Al-Zayyat Mistakes in names Local Spotlight for corrections for spelling mistakes in their names in rity from reaching the real culprits. This year, English. The ministry of interior expressed concerns Lebanese authorities detained an Egyptian musician about some technical issues related to the cancellation when he arrived in Beirut because of the similarity of of residency stickers on the passports of expatriates, names with a Syrian citizen wanted by the Lebanese By Muna Al-Fuzai which are meant to avoid data entry mistakes and ease authorities, and the verification procedures took procedures, since this service will reduce typing some time until he was cleared. [email protected] errors when it comes to names written in English. Today there is a problem of similarities in names in I think this is a good step to avoid any mistakes in many countries that results in freezing of funds of he Public Authority for Civil Information spelling that could lead to trouble. Similarity of names other persons who are not connected to any terrorist T(PACI) announced the launch of an online is also a big problem for many people when traveling acts or wanted by authorities. Therefore, joint action service that will allow expatriates to confirm or arriving from abroad. This is an issue for some to develop new procedures related to the similarity of and amend their names in English prior to the people not only in Kuwait, but also in the Arab world, names is important. issuance of their civil ID cards. In a press statement, because Arabic names are repetitive and similar. In I believe introducing modern technological sys- it was said that the launch of this service is aimed at 2017, the court forced the interior ministry to com- tems and methods to record the personal data of the easing the procedures and expanding the use of com- pensate a citizen after he was imprisoned due to hav- population, whether working in ministries or govern- puters in order to avoid repeated visits to PACI and ing a similar name with another wanted person. ment institutions or private sector or even unem- ministry of interior. In Iraq, for example, the issue of similar names and ployed, with the correct data is essential. So when Also, the service will enable expatriates to access their non-correction is a matter of concern for vic- everything is being linked to the civil ID, it helps the PACI site and ensure correctness of their personal tims. The similarity of names is one of the problems identify people who are actually wanted and end sim- data, and in case there is a mistake, they can request experienced by many Iraqis, and impedes Iraqi secu- ilarities and mistakes for good. Friday 3 Local Friday, May 3, 2019 Moody’s maintains Kuwait credit rating at Aa2 for 2019 with stable outlook KUWAIT: Moody’s Investors Service will be from a very low base. And while, in percent of GDP by fiscal year 2023/24, from For the foreseeable future, Kuwait’s fiscal (Moody’s) yesterday affirmed Government the near term at least, the deficits will be 13.8 percent at the end of fiscal year 2018/19. exposure to lower oil prices will remain very of Kuwait’s long-term issuer ratings at Aa2, financed by drawdowns from the General Still, at these levels, Kuwait’s government high. However, the net credit implications of with a stable outlook. In a report, Moody’s Reserve Fund (GRF), the country will con- debt burden would remain below the Aa-rat- a potential fall in oil prices will be mitigated said its rating affirmation is underpinned by tinue to accumulate wealth in the Future ed median, and its debt affordability would by the country’s large wealth which Moody’s view that Kuwait’s exceptionally large Generations Fund (FGF) which forms the remain significantly stronger than that of expects to be made accessible in case of wealth, with sovereign wealth fund assets majority of the country’s SWF assets, most Aa-rated peers. Moreover, while the need and sizeable current account surpluses. estimated at around 370 percent of GDP reflected in broadly stable SWF assets rela- GRF is eroded and gross government debt While oil production is currently constrained and vast hydrocarbon reserves, will continue tive to GDP at extremely high levels. will rise if legislation is passed, Kuwait con- by the OPEC production cuts, Moody’s to support the sovereign’s fiscal strength and Moody’s estimates that the budget deficit tinues to accumulate 10 percent of its gov- expects that output will increase slightly creditworthiness. The stable outlook reflects (post-FGF transfers, excluding investment ernment revenue and all investment income in towards current production capacity of 3.15 Moody’s expectation that Kuwait’s extreme- income) narrowed to 5.2 percent of GDP in the FGF, whose assets are estimated at $442 million barrels per day (mbpd) once these ly high fiscal strength will be largely pre- the fiscal year 2018/19 due to windfall oil billion, maintaining the overall SWF assets are lifted. Longer term, Kuwait faces a large served through oil price fluctuations and revenues from higher than budgeted oil broadly stable in relation to GDP. and sustained increase in demand for jobs long-term demographic pressure. In particu- prices, which averaged $71/barrel in 2018. In Additionally, Kuwait’s low external from its young and fast-growing population, lar, it assumes that the authorities overcome the last two years, higher oil prices coincid- breakeven, which Moody’s estimates at which under a system that favors entry into the current legislative hurdles and pass a ed with diminished reform momentum. At the around $51/barrel, will ensure that the coun- the public sector will inflate the govern- debt law that allows the government to moment, the deficits are fully financed try continues to accrue wealth through sus- ment’s wage bill. finance its deficit without depleting its most through drawdowns of the GRF, which tained current account surpluses under our Moody’s estimates that the demographic liquid assets.